Overview
Delaware's housing market offers opportunities for first-time buyers, with a median home price of approximately $310,000. The Delaware State Housing Authority (DSHA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The Preferred Plus Program is a delaware state housing authority's key offering for first-time buyers, providing up to 4% of the loan amount as a forgivable second mortgage (forgiven over 10 years). This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
Preferred Plus Program
Down payment and closing cost assistanceWelcome Home Program
Below-market rate mortgageFederal Programs Available in Delaware
These nationwide programs can be combined with Delaware state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Delaware
The Welcome Home Program extends additional support through below-market 30-year fixed rate mortgage. Delaware has no sales tax, reducing overall household expenses. Property taxes average about 0.56%, among the lowest in the Northeast. Combined with down payment assistance, buyers benefit from lower ongoing costs.
Federal programs complement state offerings in Delaware. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Dover Air Force Base. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Delaware.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.