Loan Products – DSHA Homeownership Loan Program | Delaware grant

Loan Products – DSHA Homeownership Loan Program

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Delaware State Housing Authority – HomeownershipDEFirst-Time Homeowner

state

Updated: Nov 29, 2025

Summary

The DSHA Loan Products page details the specific Smart Start, First State Home Loan and Diamond in the Rough offerings, showing how Delaware first-time and repeat buyers can pair a DSHA mortgage with 3%–5% down payment and closing-cost assistance.

Eligibility

Low- and moderate-income Delaware homebuyers who qualify for DSHA Welcome Home or Home Again FHA, VA, USDA or conventional 30-year fixed-rate loans, meet program income and purchase-price limits, and work with a participating lender to access Smart Start, First State Home Loan or Diamond in the Rough options.

Full Description

This page focuses on the structure of DSHA’s homeownership loan products. It lists current interest rates for FHA, VA, USDA and Freddie Mac conventional loans under two main umbrellas: Welcome Home for first-time buyers and Home Again for first-time and repeat buyers. It explains that Smart Start is an “unassisted” option with no down payment help, while First State Home Loan variants provide 3% or 4% of the final loan amount toward down payment and closing costs, and Diamond in the Rough provides 5% for buyers using an FHA 203(k) Limited renovation loan. The down payment assistance is delivered as a second mortgage linked to the DSHA first loan, with principal deferred until the home is sold, refinanced, transferred or no longer used as a primary residence. By clearly laying out interest-rate tiers, assistance percentages and basic program highlights, the page helps Delaware homebuyers and lenders choose the right mix of loan product and assistance to minimize upfront cash while maintaining affordable monthly payments.

Apply on official siteUpdated Nov 29, 2025

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More statewide programs

Explore additional grants available throughout Delaware that complement this opportunity.

First Start Homebuyer Program

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City of Wilmington – Department of Real Estate and HousingDEFirst-Time HomeownerDeferred loan

Updated: Dec 1, 2025

Wilmington’s First Start Homebuyer Program provides up to $15,000 in down payment and closing-cost assistance to low- and moderate-income first-time buyers purchasing owner-occupied homes inside city limits.

Eligible for: First-time homebuyers, displaced homemakers and single parents purchasing a single-family home within the City of Wilmington who have not ow…

Funding: Up to $15,000 or 6% of purchase price (whichever is less) for down payment/closing costs; requires $1,000 buyer contribution.CityIndividualDown payment assistanceClosing cost assistance

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Down Payment & Settlement Assistance Programs

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New Castle County – Community Development & HousingDEFirst-Time HomeownerDeferred loan

Updated: Dec 1, 2025

New Castle County’s Down Payment & Settlement Assistance (DPS) Program offers income-qualified buyers up to $10,000 in deferred, low-cost loan funds to help with down payment and closing costs when buying a home in the county.

Eligible for: Low- and moderate-income households purchasing a home in New Castle County who need help covering customary down payment and settlement char…

Funding: Up to $10,000 to assist with down payment and settlement costsCountyIndividualDown payment assistanceClosing/settlement cost assistance

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How We Can Help – Homeownership Loans

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Delaware State Housing Authority – HomeownershipDEFirst-Time HomeownerDeferred loan

Updated: Dec 1, 2025

DSHA’s “How We Can Help” page is the central hub for Delaware first-time homebuyer assistance, outlining Welcome Home and Home Again mortgage programs plus layered down payment help like First State Home Loan and Diamond in the Rough.

Eligible for: Delaware first-time and repeat homebuyers using DSHA’s Welcome Home or Home Again mortgage programs who meet county income and purchase-pric…

Funding: Down payment and closing cost assistance via 2nd-loan: 3% (First State) or 5% (Diamond in the Rough) of first mortgage, or fixed $12,000 (Home Sweet Home) or $10,000 (Delaware Diamonds) depending on program.StatewideIndividualDown payment assistanceClosing cost assistanceAffordable first mortgage

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City of Dover – Dover First Start Homeownership Downpayment and Settlement Assistance Program

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City of Dover – Community Development OfficeDEFirst-Time HomeownerDeferred loan

Updated: Dec 1, 2025

The Dover First Start Homeownership Assistance Program offers low- and moderate-income first-time buyers a 0% interest second-mortgage loan of up to $20,000 for down payment and settlement charges on homes within the City of Dover.

Eligible for: First-time homebuyers purchasing a principal-residence home within Dover city limits who have at least $1,000 in their own cash (excluding g…

Funding: Down payment and/or settlement cost assistance per Dover Homeownership Assistance Program — amount varies per program guidelines.CityIndividualDown payment assistanceClosing/settlement cost assistance

View details →