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- The Delaware State Housing Agency (DSHA) offers down payment assistance and tax credit options.
- To receive financial aid from the state agency, you must meet specific income requirements.
- If you plan to buy a home in New Castle County, explore the local down payment assistance program.
First-time homebuyers in Delaware may want to consider state or county assistance when applying for a mortgage. State and local agencies provide down payment loans and resources if you need help covering additional costs in the homebuying process.
We'll provide an overview of the different programs available in the state and how to determine if you qualify for aid.
DSHA homeownership loan and down payment assistance
The Delaware State Housing Authority helps homebuyers get a 30-year fixed-rate conventional, VA, FHA, or USDA mortgage with a low mortgage rate.
If you get a DSHA Homeownership Loan, you also might be eligible for down payment assistance from the state agency. You can get from 2% to 5% of your mortgage in the form of a 0% interest loan. You'll pay back the loan when you decide to sell, refinance or transfer your home.
To be eligible for a DSHA mortgage and down payment assistance, you'll need to meet the following requirements:
- You have a minimum credit score of 620
- You meet the income limit requirements for your county
- You plan to borrow less than $417,000
How to determine if you meet the income limit requirement
The following chart will help determine whether you meet the income limit requirements necessary to apply for the DSHA Homeownership Loan.
| County | Maximum household income for a family of 2 or fewer | Maximum household income for a family of 3 or more |
| New Castle | $126,480 | $158,100 |
| Kent | $116,280 | $145,350 |
| Sussex | $116,280 | $145,350 |
DSHA tax credit
If you're a first-time homebuyer in Delaware, you can also claim a special tax credit of up $2,000.
To receive the tax credit, you must fulfill the following criteria:
- You plan to move into your home in the first 90 days of buying your home and make it your primary residence
- You meet the income limits for your county
- Your home is less than the purchase price limit for your county
How to determine if you meet the DSHA tax credit income limit requirement
The chart below shows the maximum household income limits to qualify for the special tax credit.
| Location | Maximum household income for a family of two or fewer | Maximum household income for a family of three or more |
| New Castle targeted area | $126,480 | $147,560 |
| New Castle non-targeedt area | $105,400 | $121,210 |
| Kent targeted area | $116,280 | $135,660 |
| Kent non-targeted area | $96,900 | $111,435 |
| Sussex targeted area | $116,280 | $135,660 |
| Sussex non-targeted area | $96,900 | $111,435 |
If you're not sure whether the home is in a targeted area, use this search tool by the Federal Financial Institutions Examination Council (FFIEC), which shares Census data.
How to determine if you meet the DSHA tax credit purchase price limit
Below you'll see the maximum purchase price limit for each county to still be eligible for the DSHA tax credit. For homes with more than one unit, the limits are higher.
New Castle County has a higher purchase price limit than other counties because the median housing price is higher.
| County | Purchase price limit for a single-family home |
| New Castle | $396,527 |
| Kent | $349,525 |
| Sussex | $349,525 |
How to apply for a DSHA program
To apply for a DSHA program, reach out to a participating lender from this list. The lender will walk you through the home buying process and verify if you're eligible for state assistance.
New Castle County down payment assistance
New Castle County offers down payment assistance if you're a low-to-moderate income first-time homebuyer.
Through the county's Down Payment and Settlement Assistance Programs, you may receive a 0% interest 15-year loan of up to $10,000.
To be eligible for the loan, you must meet the following requirements:
- You have a debt-to-income ratio less than or equal to 52%
- You can contribute at least $500 for your down payment
- You plan to buy a home with a purchase price under $477,250
- The home must be inspected by a certified inspector during the homebuying process
- Your total household income must not exceed income requirements
- You have attended a Homeownership Education Program
Income limits are capped at 80% of the median income for New Castle County and are adjusted for household size.
| Household size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Maximum income | $59,050 | $67,450 | $75,900 | $84,300 | $91,050 | $97,800 | $104,550 | $111,300 |
To apply for the New Castle program, reach out to one of the HUD-approved housing counseling agencies listed on this program brochure.