Can You Get Down Payment Assistance to Buy a Home in Delaware?
Yes, potentially. Delaware offers programs that may help eligible homebuyers with down payment and closing costs—and not every option is limited to first-time homebuyers.
The amount of money needed upfront is one of the biggest concerns many buyers have when they begin thinking about homeownership.
Down payment and closing-cost assistance may help make that first step more manageable, but the programs have eligibility requirements and the assistance is not necessarily free money.
The key is understanding what may be available, how the assistance works, and whether you qualify before you begin relying on it as part of your homebuying budget.
Watch: Delaware Down Payment Assistance Explained
“Down payment assistance can make buying a home more attainable—but assistance doesn't necessarily mean free money.”
What Does Down Payment Assistance Actually Do?
Down payment assistance is designed to help eligible homebuyers with some of the upfront costs associated with purchasing a home.
Through the Delaware State Housing Authority's Delaware Mortgage Program, qualifying buyers may have access to assistance that can be applied toward eligible down payment and closing costs.
That doesn't mean every buyer will qualify, and it doesn't mean every program works the same way.
Your eligibility can depend on factors including the mortgage program, household income, purchase price, property, occupancy requirements and other current program guidelines.
Do You Have to Be a First-Time Homebuyer?
Not for every Delaware Mortgage Program option.
The Delaware State Housing Authority currently organizes its homeownership loan programs under two primary pathways: Welcome Home and Open Door.
Welcome Home generally requires borrowers to be first-time homebuyers, with certain program exceptions.
Open Door does not require borrowers to be first-time homebuyers, which means repeat buyers may also have options.
Eligibility requirements apply, so first-time or repeat-buyer status is only one part of determining which program may be available to you.
Primarily for first-time homebuyers
First-time-homebuyer requirements apply with certain exceptions.
Current assistance options include qualifying 3%, 4% and 5% programs.
First-time status is not required
Provides another pathway for eligible Delaware homebuyers, including repeat buyers.
Current assistance options include qualifying 3% and 4% programs.
Program eligibility, availability and terms apply and can change.
How Much Assistance May Be Available?
Under the Delaware State Housing Authority's current Delaware Mortgage Program, several assistance options are based on a percentage of the buyer's first mortgage loan amount.
3% of the first mortgage loan amount
Available through qualifying Welcome Home and Open Door financing for eligible down payment and closing-cost assistance.
4% of the first mortgage loan amount
Available through qualifying Welcome Home and Open Door financing for eligible down payment and closing-cost assistance.
5% of the first mortgage loan amount
Available through qualifying Welcome Home financing.
*These percentages describe current DSHA program structures and do not represent guaranteed assistance. Eligibility requirements, program availability and terms apply and can change.
Is Delaware Down Payment Assistance Free Money?
Not necessarily.
This is one of the most important things to understand before using down payment assistance.
The current First State, Keys4You and Take5 assistance programs are structured as zero-interest second mortgages.
No required monthly payment is currently required on these assistance loans, but repayment is deferred—not automatically forgiven.
Under current DSHA program terms, repayment is triggered when the first applicable event occurs, such as:
- Refinancing the home
- Selling the home
- Transferring title
- No longer using the property as your primary residence
Understanding how assistance is structured is just as important as knowing how much assistance may be available.
How Do You Find Out If You Qualify?
Start with financing—not with the house.
The Delaware State Housing Authority works with participating lenders who can evaluate your financing profile and determine which current mortgage and assistance programs may fit your situation.
Your lender can help evaluate factors such as income, credit, debt, available funds, mortgage eligibility and applicable program requirements.
Don't choose a house based on assistance you haven't qualified for yet.
Once you understand your financing and estimated funds available, your home search can be built around numbers that are much more meaningful.
VIEW CURRENT DSHA HOMEBUYER PROGRAMS →A Clearer Path to Homeownership
Understand your starting point.
Understand financing, estimated cash requirements, monthly-payment comfort and potential assistance opportunities.
Search with a real plan.
Build your home search around your actual financing, budget, priorities and goals.
Move forward with clarity.
Navigate the offer, inspections, appraisal, financing, walkthrough and settlement with a clearer understanding of what comes next.
Assistance starts with understanding your financing—not with finding a house.
Thinking About Buying a Home in Delaware?
You don't have to figure out financing, assistance programs and home shopping on your own. Let's start by understanding your goals and where you are in the process.
Delaware Down Payment Assistance FAQ
Can I get down payment assistance to buy a house in Delaware?
Potentially. Eligible Delaware homebuyers may have access to programs that help with down payment and closing costs. Qualification depends on the buyer, financing and current program requirements.
Do I have to be a first-time homebuyer to receive Delaware down payment assistance?
Not for every program. Welcome Home generally requires first-time-homebuyer status with certain exceptions, while Open Door does not require borrowers to be first-time homebuyers.
How much down payment assistance may be available in Delaware?
Current DSHA options include assistance equal to 3% or 4% of the first mortgage loan amount through qualifying Welcome Home and Open Door programs, with a 5% option available through qualifying Welcome Home financing. Eligibility and program terms apply.
Do I have to repay Delaware down payment assistance?
Current First State, Keys4You and Take5 assistance is structured as a zero-interest second mortgage with no required monthly payment. Repayment is deferred until specified events such as refinancing, selling the home, transferring title or no longer using the property as a primary residence.
Where should I start if I want to know whether I qualify?
Start by speaking with a participating lender who can review your financing profile and current program eligibility. My Real Estate Store can then help you build a home search around your financing, priorities and goals.