See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 31, 2026
Homebuyer Programs in Dover, DE (2026)
Dover is the capital city of Delaware, located in Kent County in the central part of the state. With a median home price around $290,000, Dover offers affordable homeownership opportunities supported by strong local and state assistance programs. The city's First Start Down Payment Assistance Program provides up to $20,000 as a forgivable loan, one of the most generous city-level programs in Delaware. Buyers can combine this with DSHA state programs including the $12,000 Home Sweet Home forgivable loan and the 3% First State DPA. First-time buyers may also qualify for the Delaware Mortgage Credit Certificate, providing up to $2,000 per year in federal tax credits. By stacking city, state, and federal programs, Dover homebuyers could access over $35,000 in total assistance.
City Programs in Dover
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Dover First Start Down Payment Assistance Program | Forgivable Loan | Up to $20,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000
- First-time only:
- Yes
State Programs in Delaware
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Delaware Diamonds Home Loan | Forgivable Loan | Up to $10,000 | No | View → |
| Delaware First-Time Homebuyer Tax Credit (MCC) | Tax Credit | Up to $2,000 per year in federal tax credits (35% of mortgage interest paid) | Yes | View → |
| DSHA Diamond in the Rough Program | Deferred Loan | 5% of the final loan amount for down payment and closing costs, plus up to $75,000 for renovations | No | View → |
| DSHA First State Home Loan DPA | Deferred Loan | 3% of the first mortgage loan amount | No | View → |
| DSHA Home Again Loan Program | Government-Insured Mortgage | Below-market 30-year fixed-rate first mortgage | No | View → |
| DSHA Home Sweet Home Program | Forgivable Loan | Up to $12,000 | No | View → |
| DSHA Welcome Home Loan Program | Government-Insured Mortgage | Below-market 30-year fixed-rate first mortgage | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000
- First-time only:
- No
- Type:
- Tax Credit
- Amount:
- Up to $2,000 per year in federal tax credits (35% of mortgage interest paid)
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- 5% of the final loan amount for down payment and closing costs, plus up to $75,000 for renovations
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- 3% of the first mortgage loan amount
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- Below-market 30-year fixed-rate first mortgage
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $12,000
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- Below-market 30-year fixed-rate first mortgage
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Central Delaware Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home sold at construction cost with 0% interest mortgage | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home sold at construction cost with 0% interest mortgage
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Dover First Start program requires income at or below 80% of area median income for Kent County. DSHA programs have income limits of $116,280 for 1-2 person households in Kent County.
Step 2: Complete homebuyer education. Contact NeighborGood Partners (formerly NCALL) at 302-678-9400, Interfaith Community Housing of Delaware (ICHDE) at 302-741-0142, or First State Community Action Agency at 302-674-1355 to enroll in a HUD-approved homebuyer education course.
Step 3: Contact a DSHA-approved lender. You'll need to work with an approved lender to access DSHA first mortgage programs (Welcome Home or Home Again) and down payment assistance. Visit kissyourlandlordgoodbye.com for a list of approved lenders.
Step 4: Apply for the Dover First Start program. Call 302-703-0727 for information and to submit your application. You must have at least $1,000 of your own cash (excluding gifts) and use an FHA, VA, or Conventional loan as your first mortgage.
Step 5: Get pre-approved and find a home. Work with your lender to get pre-approved. If using the DSHA Home Sweet Home program, the maximum purchase price is $285,000. The property must be within Dover city limits for the First Start program.
Step 6: Submit your full application and close. Your lender will coordinate the DSHA and city assistance programs. Be sure to enroll in the Delaware Mortgage Credit Certificate before closing if you want the annual tax credit.
Frequently Asked Questions
How much down payment assistance can I get in Dover?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
Can I combine the Dover First Start program with DSHA state programs?+−
What credit score do I need to buy a home in Dover?+−
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