First-Time Buyer? Delaware Will Help With the Down Payment

DSHA's Welcome Home program pairs a below-market-rate 30-year fixed mortgage with down payment assistance for first-time buyers, defined as anyone who hasn't owned a primary residence in the past three years. Add-on options include the First State Home Loan, a zero-interest second mortgage covering 3% of the loan amount, Keys4You at 4%, and Take5 at 5% for Welcome Home borrowers. There's also Smart Start, which can cover the full down payment plus closing costs. The assistance is a deferred second mortgage: no monthly payment, repaid when you sell or refinance. Details are on the DSHA site.

Income limits vary by program and county. In Sussex County, the current ceiling is around $111,000 for a one- or two-person household under the standard Welcome Home path, with higher limits for larger households and targeted areas. You can pair the programs with FHA, VA, USDA, or conventional financing, and they work on the price bands current in your county.

Most first-time buyers simply don't know it exists, or they assume it's only for low-income households. A typical Sussex County buyer at the median price, around $453,000, needs a meaningful down payment, and 3% to 5% assistance is the difference between waiting another year and buying now. The catch is working with a lender who knows the DSHA process and getting pre-approved early. I work with local lenders who close these loans regularly, and I'm happy to make the introduction.