Homeownership Loan Program

DSHA offers first mortgage financing at below-market interest rates to qualified Delaware homebuyers.

Program Options



Base Loan Rate



Preferred Plus 2%



Preferred Plus 3%



Preferred Plus 4%



Preferred Plus 5%



FNMA >80% LTV with No MI



FNMA >80% LTV with No MI with DPA



Rates subject to change.

Contact a Participating DSHA Mortgage Lender

DSHA works with participating lenders to offer its mortgage products. Click the link above to contact a lender and ask about DSHA's affordable first-mortgage loans, tax credits and available down payment assistance.

Loan Terms

Homeownership Loans provide financing to first time homebuyers while the Home Again program is available for repeat homebuyers. Contact a participating lender for current rates. All first mortgage products are available with downpayment and closing cost assistance if needed by using our Preferred Plus program. Available first mortgage products include:

  1. FHA, VA RDA 30 year fixed rate loans.
  2. Conventional 30 year fixed rate loans.

How To Apply

  1. Contact a participating mortgage lender and say you want to participate in this program.
  2. Ensure the property you want to purchase meets all property requirements.
  3. Understand the loan terms, contract requirements, and related details.
  4. Please view Home Buyers' Information Guidebook

Borrower Qualifications
Applicants with credit scores of 659 or below must participate in housing counseling. Find a list of HUD-approved housing counselors here.
Maximum household income for eligibility are as follows:

  • Maximum household income eligibility: $97,900
  • FICO score minimum: 620

Property Qualifications
To qualify, the maximum loan amount may not exceed:

Residence Location

Maximum Loan Amount

Kent, New Castle or Sussex


Preferred Plus

Need Down Payment Assistance?

If saving enough for a down payment and closing costs have kept you from buying a home of your own, DSHA's Preferred Plus program may be able to help. All applicants using a DSHA Homeownership Loan can use our flexible, customizable assistance, which provides a no-interest second-mortgage loan of 2 percent to 5 percent of your overall loan amount. You can apply that amount toward down payment or closing costs. The loan must be repaid upon the sale, transfer or refinance of the home, or when it is no longer your primary residence.

Do I Qualify?
To qualify for Preferred Plus, you must meet all requirements for a Homeownership Loan. outlined above.

Applicants with credit scores of 659 or below must participate in housing counseling. Find a list of HUD-approved housing counselors here.

How do I apply?
Contact a participating DSHA Mortgage Lender.

Your lender can help you choose the down payment option that is right for you. You can also check out our Home Buyer's Information Guidebook for more information.

Contact DSHA
Do you have questions about this program? Please contact DSHA toll-free at (888) 363-8808 or via email at ContactDSHA@DeStateHousing.com.