First-Time Home Buyer Programs in Delaware
Buying your first home in Delaware? The Delaware State Housing Authority runs the state's flagship program — DSHA Welcome Home — and it stacks with federal loans and local DPA. Here's the full picture, plus how to qualify.
DSHA Welcome Home
Below-market first mortgage from DSHA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Delaware first-time buyers meeting income and purchase-price caps.
How first-time homebuyer programs work in Delaware
"First-time buyer" in Delaware usually means you haven't owned a principal residence in the past three years — a wider net than most people expect. DSHA programs typically pair a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien or grant, plus an optional Mortgage Credit Certificate (MCC) that converts a portion of mortgage interest into a federal tax credit for the life of the loan.
Eligibility hinges on three inputs: your credit score (typically 620–640 for conventional, 580 for FHA), your household income relative to program caps that vary by county in Delaware, and the purchase price of the home. Completing a HUD-approved homebuyer education course is required before closing on most DSHA products.
The best part: Delaware first-time buyer programs stack with FHA, VA, USDA, and conventional first mortgages, so an FHA borrower with a 620 score can still access DSHA DPA. And city or county programs in Delaware often layer on top for even larger totals — see the Grant Finder for your ZIP-specific total.
How to qualify: Delaware first-time buyer steps
- 1
Check your credit for DE program eligibility
Most Delaware first-time buyer programs require a minimum credit score (typically 620–640 for conventional, 580 for FHA). Pull your score for free with a soft inquiry so you know where you stand before applying.
- 2
Confirm Delaware first-time buyer status
DSHA defines "first-time buyer" as someone who hasn't owned a principal residence in the past three years. Some Delaware targeted areas waive this rule.
- 3
Take a DE approved homebuyer education course
DSHA requires a HUD-approved homebuyer education course before closing on most first-time programs. Most run 6–8 hours and can be completed online.
- 4
Apply through a DSHA-approved lender
DSHA Welcome Home is originated by participating DE lenders, not by the HFA directly. Your loan officer submits the DPA package alongside your main mortgage application.
- 5
Close on your Delaware home
First mortgage funds and DPA come to closing together. Keep documentation of the assistance terms — some Delaware DPA is forgivable after a residency period.
See if you're mortgage-ready in Delaware — 60 seconds
Get a free credit readiness check and a 30-day plan tailored to Delaware first-time buyer programs.
Start my DE readiness checkDelaware first-time buyer programs: FAQ
What is the flagship first-time buyer program in Delaware?▾
DSHA Welcome Home is the headline first-time homebuyer product from the Delaware State Housing Authority (DSHA). Below-market first mortgage from DSHA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Delaware first-time buyers meeting income and purchase-price caps.
What credit score do I need for Delaware first-time buyer programs?▾
Most Delaware first-time buyer programs require a minimum credit score of typically 620–640 for conventional, 580 for FHA. Higher scores unlock better interest rates and more DPA options. If your score is below the floor, use HomeApproach's Credit Readiness tool to see the fastest path to qualifying.
Do Delaware first-time buyer programs work with FHA or VA loans?▾
Yes. DSHA Welcome Home and most DSHA products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA application alongside your first mortgage — no separate credit pull required.
Can I stack Delaware first-time buyer programs with local city or county DPA?▾
In most cases, yes. Delaware buyers regularly combine DSHA state assistance with city or county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your specific total.
Do I have to be a Delaware resident to qualify?▾
DSHA Welcome Home requires the home you're buying to be in Delaware and to become your primary residence. You do not typically need to be a current Delaware resident to apply, but check program-specific residency rules.