How Much Money Do You Really Need to Buy a House in Delaware?
Buying a home may not require as much money upfront as you think.
One of the most common misconceptions we hear from buyers is that they need a 20% down payment before they can purchase a home.
For many buyers, that's simply not the case.
Depending on your financing, eligibility and available homebuyer programs, you may be able to purchase with a considerably smaller down payment.
But the down payment is only one part of the money you should plan for.
Watch: How Much Money Do You Really Need?
“The goal isn't simply to determine the most expensive house you can qualify to purchase. It's to understand what buying a home comfortably looks like for you.”
Your Down Payment Isn't the Whole Number
When buyers ask, “How much money do I need?” they are usually thinking about the down payment.
But your actual homebuying budget may include:
- Down payment
- Earnest money deposit
- Home inspection
- Appraisal
- Closing costs and prepaid expenses
- Moving expenses
- Money you want to keep in savings after closing
Some of these amounts may ultimately be credited toward your transaction, paid differently depending on your loan or contract, or offset by assistance, seller credits or lender credits.
That's why there isn't one universal dollar amount that every Delaware buyer needs.
Do You Really Need 20% Down?
No. A 20% down payment may offer advantages, but it is not a universal requirement for buying a home.
Some conventional financing options may permit qualifying borrowers to purchase with down payments as low as 3%. FHA financing may permit qualifying borrowers to purchase with as little as 3.5% down. Eligible borrowers using VA-backed financing may have a no-down-payment option, although a lender may still require a down payment in some circumstances.
That's why financing should come before house shopping.
Loan eligibility, terms and requirements depend on the individual borrower, property, lender and loan program. A licensed lender can explain which options may apply to your circumstances.
What About Closing Costs?
Closing costs are separate from the down payment. Depending on the transaction, they may include lender charges, appraisal expenses, title-related expenses, taxes, prepaid homeowners insurance, prepaid property taxes, prepaid interest and other transaction-specific costs.
Your lender's Loan Estimate is where your numbers become real.
The Loan Estimate provides important information about the proposed mortgage, including estimated closing costs and estimated cash to close. Those figures may change when information about the loan or transaction changes, so ask your lender to explain the estimate and any later revisions.
Delaware Homebuyer Assistance May Change the Equation
Eligible Delaware buyers may have access to homebuyer assistance programs, including programs administered through the Delaware State Housing Authority.
Current DSHA offerings include the Welcome Home and Open Door programs. Depending on current program rules and eligibility, assistance may be available toward eligible down-payment and closing-cost expenses. Not every buyer will qualify.
EXPLORE DELAWARE HOMEBUYER ASSISTANCE →First-Time Delaware Buyer? There May Be Additional Considerations
Qualifying Delaware first-time homebuyers may be eligible for a state realty-transfer-tax benefit, subject to current eligibility requirements and limits. This is not guaranteed savings. Review the Delaware Division of Revenue's current first-time homebuyer information and discuss the details with the professionals handling your transaction.
How Much Should You Actually Have Saved?
Enough to close isn't necessarily the same as enough to feel comfortable buying.
A lender can help determine the funds required for your particular financing and transaction. But we also encourage buyers to think about what happens after they receive the keys.
Moving expenses happen. Furniture happens. Repairs happen. Life continues happening.
Your home purchase shouldn't leave you afraid to open your banking app the morning after settlement.
Our conversations aren't only about:“What can you qualify for?”
They're also about:“What feels comfortable for you?”
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 a home search around your actual 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.
Ready to Figure Out Your Number?
You don't have to know exactly how much money you need before talking with us. That's what the conversation is for.
Delaware Homebuyer FAQ
Do I need 20% down to buy a house in Delaware?
No. Several financing programs may allow qualifying borrowers to purchase with considerably less than 20% down. The amount required depends on the financing program, borrower qualifications and property.
Is the down payment the same as closing costs?
No. The down payment contributes toward the home's purchase price, while closing costs generally include expenses associated with obtaining financing and completing the purchase.
Can Delaware homebuyers receive down-payment or closing-cost assistance?
Potentially. Eligible Delaware buyers may have access to assistance programs, including programs offered through the Delaware State Housing Authority. Program requirements and availability can change.
How do I know my actual cash to close?
Your lender's Loan Estimate provides an estimated cash-to-close figure. Your final Closing Disclosure provides the final loan terms and closing-cost information before settlement.
Should I talk to a lender or real estate professional first?
Either can be a reasonable starting point. At My Real Estate Store, we encourage buyers to understand financing and affordability before beginning serious home shopping.