If you are looking for a first-time home buyer grant in Delaware, here is the honest picture: the state’s help comes as zero-interest deferred second mortgages rather than outright grants — still valuable, since you make no payments until you sell, but not free money.
This guide covers what actually counts as grant money for first-time buyers in Delaware in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in Delaware?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. Delaware’s housing authority (DSHA) structures its assistance as deferred second mortgages, and it ended its Mortgage Credit Certificate program in 2025 — so there is no true statewide grant, but the deferred help carries no monthly cost.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
Delaware grant and forgivable-money programs
Here is what Delaware actually offers first-time buyers:
- Take5 — a deferred second of 5% of the first-mortgage amount at 0% interest, for first-time buyers — no monthly payment, repaid only when you sell, refinance, or move out (a deferred loan, not a grant)
- Keys4You and First State Home Loan — deferred seconds of 4% and 3% respectively, also at 0% interest with no monthly payment
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to Delaware first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in Delaware or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the Delaware programs above are real, available now, and often just as valuable.
How to qualify for a grant in Delaware
Grant and forgivable programs in Delaware share a familiar set of rules:
- Income limits. DSHA sets income limits by county and household size.
- First-time status. Take5 and the Welcome Home track require first-time status; the Open Door track serves repeat buyers.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in Delaware
Because Delaware’s help is deferred rather than granted, ask a DSHA lender which tier (Take5, Keys4You, or First State) you qualify for, and check with a HUD-approved counselor about any local or nonprofit grants.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
Delaware first-time buyer grants FAQ
Do first-time home buyer grants in Delaware have to be repaid?
Yes — Delaware’s DSHA assistance is a deferred second mortgage, so you eventually repay it when you sell, refinance, or move out. There are no monthly payments and no interest in the meantime, which keeps your ongoing cost low, but it is not a grant. Delaware also ended its Mortgage Credit Certificate in 2025, so do not count on that either.
Is there a $25,000 grant for first-time buyers in Delaware?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in Delaware or any state today. What is available are Delaware’s real grant and forgivable programs described above, plus the statewide options in our Delaware programs guide.
Who qualifies for down payment grants in Delaware?
Take5 and the Welcome Home track require first-time status; the Open Door track serves repeat buyers. DSHA sets income limits by county and household size. You will also complete a homebuyer education course and use a participating lender.
Does Delaware have a first-time buyer grant?
Not a true statewide grant. Delaware’s DSHA help comes as zero-interest deferred second mortgages (3%, 4%, or 5% of the loan through First State, Keys4You, and Take5), which you repay only when you sell or refinance. They carry no monthly payment, so they behave like a grant month to month, but the balance is eventually due. For genuine grants, check local and nonprofit programs in your county.