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First State Home Loan

Quick answer

First State Home Loan is a Delaware down payment assistance program from Delaware State Housing Authority. It provides Zero-interest second mortgage equal to 3% of the first mortgage loan amount as a deferred-payment loan. The minimum credit score is 620. Eligibility, income limits and funding are set by the agency, so confirm current terms on its official page.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast verified

Who qualifies for First State Home Loan?

Paired with a Delaware Mortgage Program first mortgage. No monthly payment required.

DetailProgram terms
AssistanceZero-interest second mortgage equal to 3% of the first mortgage loan amount
TypeDeferred-payment loan
Minimum credit620
First-time buyerNot required
Income limitsIncome and sales price limits apply.

How does First State Home Loan work with an FHA loan?

Delaware's 2026 FHA one-unit limits start at $541,287, which supports a price of about $560,000 with 3.5% down.

Where do I confirm current terms?

On the official page: https://www.destatehousing.com/homeownership-loans/. Programs can pause when funds run out, so confirm availability with a participating lender.

“Zero-interest second mortgage equal to 3% of the first mortgage loan amount for down payment and closing costs assistance.” — Delaware State Housing Authority

← All Delaware down payment assistance programs

Frequently asked questions

Zero-interest second mortgage equal to 3% of the first mortgage loan amount, according to Delaware State Housing Authority.

It's a deferred loan — no monthly payments, repaid when you sell, refinance or pay off the first mortgage.

Income and sales price limits apply.

A minimum 620 credit score.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.