Delaware’s DSHA recently refreshed its lineup under the Delaware Mortgage Program banner, offering first-time buyers a choice of down payment seconds worth 3%, 4%, or 5% of the loan — with the largest, Take5, reserved for first-timers.
This guide covers what is actually available to first-time buyers in Delaware in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Delaware first-time home buyer guide.
The DSHA and its home loan programs
Delaware’s first-time buyer programs are run by the Delaware State Housing Authority (DSHA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- Welcome Home — the first-time buyer track of the Delaware Mortgage Program, with below-market FHA/VA/USDA/conventional rates
- Open Door — the repeat-buyer track of the same program
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Delaware
Down payment assistance is the heart of what DSHA offers, and Delaware gives buyers more than one way to get it. DSHA offers a tiered set of deferred, zero-interest seconds, with the amount depending on the product you choose.
- Take5 — deferred second at 0% interest (first-time buyers only), 5% of the first-mortgage amount.
- Keys4You — deferred second at 0% interest, 4% of the first-mortgage amount.
- First State Home Loan — deferred second at 0% interest, 3% of the first-mortgage amount.
- Diamond in the Rough — down payment assistance paired with FHA 203(k) renovation financing, varies — verify with DSHA.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $300,000 loan in Delaware, Take5 provides 5% — about $15,000 — as a zero-interest deferred second with no monthly payment, repaid only when you sell, refinance, or move out. First-time buyers get access to that largest tier, while the 4% Keys4You and 3% First State options are available more broadly. Confirm the current products and county limits with DSHA.
Who qualifies in Delaware?
Every program sets its own rules, and they change periodically, but the common requirements in Delaware look like this:
- Income limits. DSHA sets income limits by county and household.
- First-time status. First-time status (no ownership in three years) is required for Welcome Home and the Take5 assistance; Open Door serves repeat buyers.
- Credit score. A minimum of 620 applies. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. HUD-approved housing counseling or education is required.
- Purchase price limits. DSHA acquisition-cost/purchase-price limits apply by county.
Delaware programs worth knowing about
Beyond the standard offerings, Delaware aims extra help at specific buyers and places. Watch for:
- Take5 — the enhanced 5% assistance for first-time buyers
- Diamond in the Rough — combines down payment help with 203(k) renovation financing
Mortgage Credit Certificates in Delaware
Note that Delaware ended its Mortgage Credit Certificate program in August 2025 and no longer accepts new applications, so do not plan on an MCC here — DSHA now delivers savings through below-market first-mortgage rates instead. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Delaware assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Delaware program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates DSHA loans, so ask directly which DSHA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: DSHA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with DSHA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Delaware first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Delaware?
First-time status (no ownership in three years) is required for Welcome Home and the Take5 assistance; Open Door serves repeat buyers.
What credit score do I need for DSHA programs?
A minimum of 620 applies. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Delaware assistance with an FHA, VA, or USDA loan?
Yes. DSHA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
Which Delaware down payment program gives the most help?
For first-time buyers, Take5 provides the most — 5% of the first-mortgage amount as a zero-interest deferred second. Keys4You (4%) and First State Home Loan (3%) are available more broadly, including to repeat buyers through the Open Door track. All three are deferred, meaning no monthly payment until you sell or refinance. Because DSHA refreshed its program names recently, confirm the current lineup with a DSHA lender.
First-time home buyer grants in Delaware
Looking specifically for grant money? Our guide to first-time home buyer grants in Delaware covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.