First-Time Home Buyer Programs in Delaware: How to Get Up to $15K in Help

If you’re a first-time home buyer in Delaware, you probably have questions like: How much do I need for a down payment? Can I get help with closing costs? What credit score do I need? How do I get approved? You’re not alone—these are the top questions I get every day as a local Realtor helping first-time buyers. The good news? Delaware offers amazing programs to help you buy your first home—some offering up to $15,000 in assistance. Let’s break it all down.

To qualify for most first-time buyer programs, including DSHA (Delaware State Housing Authority), you typically need to have not owned a home in the last 3 years, meet income and purchase price limits, use the home as your primary residence, and complete a homebuyer education course. If you’re buying in Wilmington, the City of Wilmington’s First Start Home Ownership Down Payment & Settlement Assistance Program offers up to $15,000 in assistance for eligible buyers. You can learn more at Wilmington First Start Program.

Minimum down payments depend on your loan type. FHA loans require 3.5%, conventional loans typically require 3–5%, and VA or USDA loans offer 0% down. The DSHA Preferred Plus program offers up to 3% assistance toward your down payment and closing costs when you use one of their participating lenders. For full details, visit kissyourlandlordgoodbye.com.

In addition to DSHA and city-level programs, many local lenders offer their own first-time buyer assistance, such as grants, matched savings programs, or lender credits. Some of these programs can be stacked with DSHA or Wilmington assistance, while others are standalone and cannot be combined. It’s important to talk to your lender and Realtor about what combinations are allowed so you can maximize your savings and avoid program conflicts.

Let’s talk closing costs. In Delaware, closing costs typically range from 4% to 6% of the purchase price and include lender fees, title insurance, transfer tax, and prepaid taxes and insurance. Here are a few scenarios:

On a $200,000 home with an FHA loan, your down payment is $7,000 (3.5%). Closing costs may be around $8,000–$10,000. With DSHA providing 3% assistance ($6,000), your out-of-pocket cost could be around $9,000 or less depending on negotiated seller help.

On a $300,000 home, the down payment for FHA is $10,500, and closing costs might be $12,000–$15,000. With DSHA’s 3% ($9,000), you’d need to cover the remaining $13,500 or request seller assistance. If you’re purchasing in Wilmington and qualify for the First Start program, you could receive up to $15,000 to put toward these expenses, dramatically reducing what you owe at the table.

Your credit score is a key part of qualifying. FHA loans allow scores as low as 580 (some lenders prefer 620+), while conventional loans usually require 620 or higher. If you’re not there yet, I walk you through how to raise your credit in my First-Time Home Buyer Master Class.

The type of financing you’re using matters. To use DSHA or Wilmington funds, the home must be safe, livable, and meet minimum property standards. Properties sold “as-is,” like many HUD homes, may not qualify unless you’re using renovation financing like FHA 203k.

Buying your first home shouldn’t feel overwhelming. That’s why I created a step-by-step program to guide you through the entire process. Enroll now in my First-Time Home Buyer Master Class where I break down everything from getting pre-approved, to qualifying for programs like DSHA and Wilmington First Start, to budgeting, closing, and moving in with confidence.

Ready to stop renting and start building wealth through real estate? Click here to get started today: First-Time Home Buyer Master Class