Delaware State Housing Authority Celebrates $125 Million In Funding To Help Delawareans Achieve Homeownership

Family cheering, Stop Renting & Start Owning
Laurie Stovall
Posted By: Laurie Stovall

Dover, Del. April 25, 2024 – The Delaware State Housing Authority (DSHA) is proud to announce $125 million in new mortgage funding availability, which will provide 30-year fixed-rate mortgages with competitive interest rates to Delaware homebuyers. To view the agency’s current interest rates, please visit:

Approximately $125 million in funding is being made available through the agency’s special authority to issue tax-exempt mortgage revenue bonds. The funding is projected to assist 480 Delawareans on their journey to homeownership.

In addition, families can take advantage of DSHA’s down payment and closing assistance programs, such as Delaware Diamonds and First State Home Loan programs.  

  • Delaware Diamonds is a zero-interest forgivable second loan of $10,000 provided to applicants employed in eligible occupations. The loan amount is forgiven after ten years with verification that the homeowner(s) has resided in the subject property as their primary residence. To view the eligible occupation list, please visit:
  • The First State Home Loan program is a zero-interest second loan, providing 3% of the first mortgage’s final loan amount. The principal will be deferred until the following events occur: refinance, sales, transfer of title, or the property is no longer the borrower’s primary residence (whichever comes first).

Buyers participating in the programs must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and credit score (620 minimum). Income limits for these programs can be found on DSHA’s homeownership website:

DSHA also offers financial counseling through HUD-approved housing counselors to help potential homebuyers improve their scores and reach homeownership. To find a housing counselor near you, please visit:

The programs are available statewide, and DSHA will be working with its participating lenders to serve homeowners. See the complete lender list here:

“People tend to think that DSHA programs are only for those who need down payment assistance, but DSHA can benefit homebuyers in many ways,” said Nicholas DiEmidio, Mortgage Consultant at Pike Creek Mortgage Services, Inc.

“What we love about the programs is that the interest rates can be about 1.25% less than the market interest rates, assuming applicants meet the guidelines. This could give someone who would only be approved to 250,000 an approval up to 285,000. With inflation where it is and the cost of living up, this extra buying power can go a long way for our homebuyers.” 

DSHA’s 2023 Housing Needs Assessment found that government-backed mortgages are important for many non-White households to attain homeownership: 58% of Black households and 41% of Hispanic households utilized government-backed mortgages.

“These low-interest rate mortgages, combined with DSHA’s down payment and closing cost assistance programs, are an essential tool for Delawareans to reach their homeownership goals,” said Cynthia Karnai, Director of DSHA. “We’re proud that many Delaware families have benefited from these programs and look forward to working with many more.” 

As the state’s housing finance agency, DSHA can issue bonds and notes. The last bond deal was launched in January 2024 and assisted 290 families in seven weeks. DSHA plans to launch at least two more deals before the end of 2024.

Media inquiries

Laurie M. Stovall
Director of Public Relations
Toll-Free (888) 363-8808

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