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First Time Homebuyers Program
Commonly referred to as the First-Time Home Buyers Program, this statewide program provides first mortgage financing at below-market interest
rates to qualified Delaware homebuyers who have not owned a home in the past three years.
How To Apply
- Contact a participating mortgage lender and say you want to participate in this program.
- Make sure you (the borrower) meet all borrower requirements.
- Ensure the property you want to purchase meets all property requirements.
- Understand the loan terms, contract requirements, and related details.
- Please view Home Buyers'
Information Guidebook
Targeted Areas
Throughout this page the terms "targeted areas" and "non-targeted areas" are used. Different qualification
requirements apply if a targeted or non-targeted area is selected by a borrower. You can see if the property you want to purchase is in a
targeted area by clicking on a Census Tract number below.
- Borrowers purchasing in targeted areas do not have to meet first-time homebuyer status requirement.
- Targeted areas include the following Census Tracts:
- New Castle County:
1,
7,
17,
20,
21
and 22.
Or, see all tracts.
- Kent County:
411
Or, see the CT 411 area.
- Sussex County: none at this time
- To see if your selected property is in a qualified targeted area census tract, please click
here:
- Prior-issue targeted funds are still available.
Borrower Qualifications
To qualify, a borrower's current gross family income cannot exceed:
| County |
Area |
1 or 2 Person Households |
3 or More Person Households |
| New Castle |
Non-targeted |
$81,500 |
$93,725 |
| |
Targeted |
$97,800 |
$114,100 |
| Kent & Sussex |
Non-targeted |
$73,300 |
$84,295 |
| |
Targeted |
$87,960 |
$102,620 |
Exceptions to First Time Homebuyer Restrictions
- A first-time homebuyer is defined as a borrower who has not owned their principal residence during the past three years. There are two exceptions to this rule:
- A borrower purchasing a home in a targeted area
- A Veteran with a Qualified Veteran's Exemption
- A mobile home on rented land or a temporary foundation is not considered homeownership.
Property Qualifications
To qualify, a property's purchase price cannot exceed:
| County |
Type of Loan |
Type of Home |
| 1 Unit |
2 Units |
3 Units |
4 Units |
| New Castle |
Non-targeted |
$382,784 |
$490,010 |
$592,314 |
$736,131 |
| |
Targeted |
$467,847 |
$598,901 |
$723,939 |
$899,716 |
| Kent |
Non-targeted |
$342,911 |
$438,972 |
$530,613 |
$659,438 |
| |
Targeted |
$419,114 |
$536,521 |
$648,527 |
$805,979 |
| Sussex |
Non-targeted |
$341,772 |
$437,514 |
$528,881 |
$657,250 |
| |
Targeted |
N/A |
N/A |
N/A |
N/A |
Loan Terms
- 30 year fixed rate loans for new and existing homes and 203K currently at 3.5%
- 30 year fixed rate loans for new and existing homes and 203K utilizing any DSHA down
payment and closing cost assistance program currently at 4.5%
Related Details
Delaware banks and other financial institutions may apply to DSHA to become approved lenders to originate
below-market interest rate first mortgages. Banks and financial institutions can also purchase the mortgage revenue bonds in order to make the proceeds available
at below-market rates to low- and moderate-income first-time homebuyers.
Participating Mortgage Lenders
Once you know you have met all requirements for this program, contact the lender of your choice.
DSHA Contact Person
Do you have questions about this program? Would you like to suggest an improvement to this Web page? Please contact DSHA at 302.574.3730
