First Time Home Buyer in DelawareIf you are looking to buy your 1st home, you've come to
the right place. Fill out the form on the right to get started.

Today’s Rates for First Time Homebuyers in Delaware

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

Delaware First Time Home Buyer Checklist

1. Decide on your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
2. Get familiar with your credit score. Your credit should fall somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus.
3. Shop interest rates from different lenders in your part of Delaware. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
5. Determine a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
6. Begin home shopping. Be sure to avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Delaware FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

• Down payment: 3.5%
• Minimum acceptable credit score: 580 (varies)
• Mortgage insurance: Upfront (1.75% loan amount) and monthly
• Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Delaware page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Delaware home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Wilmington, Dover and Brandywine are not eligible. 

• Down payment: None required; financing up to 102% available depending on home appraisal
• Minimum acceptable credit score: 620
• Mortgage insurance: Upfront (2% loan amount) and monthly
• Income maximums apply 

Delaware Grant and Assistance Programs

The Delaware State Housing Authority (DSHA) has a number of programs that assist first time home buyers with securing affordable financing. 

Their main homeownership loan program offers a 30 year fixed-rate mortgage to qualified state residents at below-market interest rates. The loan can be used in conjunction with SMAL, or the Second Mortgage Assistance Loan, which provides borrowers funds for down payment and closing cost assistance. 

Home buyers may also be eligible for the DSHA's exclusive Advantage 3 grant, which provides down payment and closing cost assistance in the form of a gift equal to 3% the home loan amount. The Advantage 3 home buyer grant need not be repaid.

DSHA facilitates monthly savings for home buyers via the Delaware First-Time Homebuyer Tax Credit. Participants with the tax credit claim a portion of the annual interest paid on their mortgage in order to reduce their pay's federal withholding. More cash freed up on each pay check can then be used toward a monthly mortgage payment.

For a full list of mortgage loan and assistance programs available through DSHA, visit the homeownership page. 

Lenders in: Delaware.