Down Payment Assistance in Delaware

What is down payment assistance in Delaware?

Delaware’s home prices tend to stay more manageable than its Mid-Atlantic neighbors, and with the right down payment assistance, buyers here often find homeownership closer within reach than expected.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the sandy beaches of the Atlantic coast to the farmland of the north, Delaware homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Delaware or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Delaware

The Delaware State Housing Authority (DSHA) is the state’s housing finance agency and the central source for statewide DPA programs. DSHA doesn’t lend directly to buyers. Homebuyers apply through a DSHA-approved participating lender, which will combine the assistance with the mortgage.

DSHA DPA Programs

The DSHA offers several Welcome Home and Open Door mortgage options that can be combined with deferred down payment and closing costs assistance. These programs are available through participating lenders and pair a 30-year fixed-rate DSHA first mortgage with a second mortgage that generally has no monthly payment.

Program requirements include:

• Must meet household income limits based on size and county
• Can be combined with FHA, VA, USDA, and Conventional loans

Welcome Home: This program offers below-market interest rates and can be combined with down payment and closing costs assistance.

Program requirements include:

• Must be first-time homebuyer
• Minimum credit score of 620
• Applicants with a credit score of 659 or below must participate in housing counseling
• Income and sales price limits apply

Under the Welcome Home program, DSHA offers the following DPA options:

• First State Home Loan: Offers a 0% interest rate second mortgage equal to 3% of the first mortgage loan amount that can be used toward down payment and closing costs. No monthly payments are required, and payment is deferred until the home is refinanced, sold, transferred, or the property is no longer the buyer’s primary residence
• Keys4You Home Loan: Offers a 0% interest rate second mortgage equal to 4% of the first mortgage loan amount that can be used toward down payment and closing costs. No monthly payments are required, and payment is deferred until the home is refinanced, sold, transferred, or the property is no longer the buyer’s primary residence
• Take5 Home Loan: Offers a 0% interest rate second mortgage equal to 5% of the first mortgage loan amount that can be used toward down payment and closing costs. No monthly payments are required, and payment is deferred until the home is refinanced, sold, transferred, or the property is no longer the buyer’s primary residence
• Diamond in the Rough Home Loan: Offers a 0% interest rate second mortgage equal to 5% of the first mortgage loan amount used for down payment and closing costs assistance. Buyers must qualify for the FHA 203(k) limited program to use this loan

Open Door: This program is available to both first-time and repeat homebuyers.

Program requirements include:

• Minimum credit score of 620
• Applicants with a credit score of 659 or below must participate in housing counseling
• Income and sales price limits apply

Under the Open Door program, DSHA offers the following DPA options:

• First State Home Loan: Offers a 0% interest rate second mortgage equal to 3% of the first mortgage loan amount that can be used toward down payment and closing costs. No monthly payments are required, and payment is deferred until the home is refinanced, sold, transferred, or the property is no longer the buyer’s primary residence
• Keys4You Home Loan: Offers a 0% interest rate second mortgage equal to 4% of the first mortgage loan amount that can be used toward down payment and closing costs. No monthly payments are required, and payment is deferred until the home is refinanced, sold, transferred, or the property is no longer the buyer’s primary residence
• 1% of the loan amount for borrowers at or below 50% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.

Beyond DSHA statewide programs, several Delaware cities and counties have established their own DPA programs. Many of these can be stacked with DSHA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Wilmington down payment assistance program

Wilmington is Delaware’s largest city, long known as a corporate hub thanks to the state’s business-friendly incorporation laws that draw major companies to set up headquarters there. Its riverfront district along the Christina River has seen steady revitalization with new restaurants and entertainment, while a direct Amtrak line puts Philadelphia and even New York within easy reach.

Wilmington down payment assistance program includes:

Wilmington First Time Homebuyer Program: This program provides down payment and closing costs assistance to eligible low- and moderate-income buyers purchasing a home in the city of Wilmington. Buyers may receive up to 6% of the home’s purchase price at a maximum assistance of $15,000.

Program details and requirements include:

• Amount of assistance is based on the buyer’s demonstrated financial need
• Buyer must contribute at least $1,000 of their own funds toward closing costs
• Must be first-time homebuyer
• Applicant must be U.S. citizen or legal resident
• Buyers do not have to live in Wilmington when they apply
• Must meet household income limits
• Property must be used as primary residence
• Completion of a homeownership education course
• Buyer must obtain a fixed-rate primary mortgage
• Single-family homes only

New Castle County down payment assistance program

New Castle County anchors northern Delaware, home to Wilmington along with a mix of historic towns and growing suburbs like Newark. Its location along the I-95 corridor gives buyers easy access to Philadelphia, Baltimore, and D.C., while Delaware's lack of sales tax adds an extra draw for shoppers and buyers. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Wilmington.)

New Castle County down payment assistance program includes:

Down Payment and Settlement Assistance (DPS) Program: The program offers up to $10,000 to low- and moderate-income households to cover down payment costs or settlement charges. The assistance is structured as a second mortgage loan with a 15-year term, segmented into two periods. The first two years are a deferral period, and payments are optional. The remaining 13 years require monthly payments.

Program details and requirements include:

• Existing residential structures or new construction in New Castle County, outside of Wilmington are eligible
• Maximum selling price is $594,550
• Minimum contribution by borrower is $500
• Loan must be repaid if property is sold or transferred
• Household income cannot exceed 80% of AMI
• Must be first-time homebuyer
• Property must be your primary residence
• Completion of a homebuyer education course

These are the main down payment assistance programs available across Delaware. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Delaware down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at destatehousing.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. DSHA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Delaware property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Delaware down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}