Skip to content
Purchase Mortgage Loan
Get Pre-Approved

How to buy a home in Delaware

Quick answer

To buy a home in Delaware, most buyers use an FHA, conventional, VA or USDA loan, often combined with Delaware State Housing Authority (DSHA) down payment assistance. With a typical home around $326,800, a 3.5% FHA down payment is about $11,438 and the estimated monthly payment is roughly $2,548 at a 7.18% rate.

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

Home prices in Delaware sit near the middle of the national range, so the loan program you choose — and whether you add down payment assistance — can swing your upfront cash by thousands. Because Delaware has a smaller population, local lenders and the state housing agency play an outsized role — it pays to compare a few loan officers. A household earning around $99,000 a year could comfortably afford a typical Delaware home under the 31% housing guideline.

What does a home cost in Delaware?

ItemDelaware estimate
Typical home value$326,800
3% down (conventional)$9,804
3.5% down (FHA)$11,438
20% down$65,360
Est. monthly payment (FHA, 3.5% down)$2,548
Household income to afford (31%)$99,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

What first-time home buyer programs does Delaware offer?

Delaware State Housing Authority (DSHA) is Delaware's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

  • Preferred Plus: A first mortgage paired with down payment and closing cost assistance for eligible buyers.
  • First-Time Homebuyer Tax Credit: A mortgage credit certificate that can reduce federal income taxes each year you keep the loan.

Check current terms at Delaware State Housing Authority (DSHA). Many Delaware cities and counties also run their own down payment assistance.

What are the Delaware loan limits for 2026?

Delaware has 3 counties; 0 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

CountyConformingFHA
New Castle County$832,750$630,200
Sussex County$832,750$541,287
Kent County$832,750$541,287

See all Delaware county loan limits → VA loans have no limit for borrowers with full entitlement.

Which Delaware down payment assistance programs are verified?

  • First State Home Loan — Zero-interest second mortgage equal to 3% of the first mortgage loan amount (deferred-payment loan)
  • Keys4You Home Loan — Zero-interest second mortgage equal to 4% of the first mortgage loan amount (deferred-payment loan)

How much house can I afford in Delaware?

Use Delaware's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in Delaware.

How do property taxes affect buying in Delaware?

Homeowners in Delaware pay a median of $1,731 a year in property taxes — an effective rate of about 0.53% of the median home value, below the national average, which helps keep monthly payments down (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in Delaware?

  • Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
  • FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
  • VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
  • USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
  • Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
  • First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in Delaware cities

Browse every city page →

Delaware home buying FAQs

On a typical Delaware home of about $326,800, a 3.5% FHA down payment is roughly $11,438 and a 3% conventional down payment about $9,804, plus closing costs of 2%–5% of the loan.

Yes. Delaware State Housing Authority (DSHA) offers programs including Preferred Plus, First-Time Homebuyer Tax Credit. Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $832,750 in most Delaware counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $541,287 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

Get matched with Delaware purchase lenders

Answer a few quick questions and get matched with purchase mortgage lenders in your area. Free, and it won't affect your credit score.

Get My Matches

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.