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Homebuyer Programs in Wilmington, DE (2026)

Last updated March 31, 2026 | Population: 74,000 | Median home price: $225,000 | Est. closing costs: $4,500 - $7,000

Skyline of Wilmington, DE

Wilmington is the largest city in Delaware, situated along the Christina River and Brandywine Creek in New Castle County. With a median home price around $225,000, Wilmington offers relatively affordable homeownership opportunities compared to neighboring Philadelphia. The city's First Start Homebuyer Program provides up to $15,000 in down payment and closing cost assistance, and buyers can stack this with state-level DSHA programs including the $12,000 forgivable Home Sweet Home loan and the 3% First State DPA. First-time buyers may also qualify for the Delaware Mortgage Credit Certificate, which provides up to $2,000 per year in federal tax credits. By combining city, state, and federal programs, Wilmington homebuyers can potentially access over $30,000 in total assistance.

Top Homebuyer Programs in Wilmington

Wilmington First Start Homebuyer Program
Type:
Grant
Amount:
Up to $15,000 or 6% of the purchase price, whichever is less
First-time only:
Yes
New Castle County Down Payment Settlement Program
Type:
Deferred Loan
Amount:
Up to $5,000 (minimum $1,000)
First-time only:
Yes
New Castle County ReVaMP Program
Type:
Forgivable Loan
Amount:
Up to $5,000
First-time only:
No
FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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
Habitat for Humanity of New Castle County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home sold at construction cost with 0% interest mortgage
First-time only:
No
Delaware Diamonds Home Loan
Type:
Forgivable Loan
Amount:
Up to $10,000
First-time only:
No
Delaware First-Time Homebuyer Tax Credit (MCC)
Type:
Tax Credit
Amount:
Up to $2,000 per year in federal tax credits (35% of mortgage interest paid)
First-time only:
Yes
DSHA Diamond in the Rough Program
Type:
Deferred Loan
Amount:
5% of the final loan amount for down payment and closing costs, plus up to $35,000 for renovations
First-time only:
No
DSHA First State Home Loan DPA
Type:
Deferred Loan
Amount:
4% of the first mortgage loan amount
First-time only:
Yes
DSHA Home Again Loan Program
Type:
Government-Insured Mortgage
Amount:
Below-market 30-year fixed-rate first mortgage
First-time only:
No
DSHA Home Sweet Home Program
Type:
Forgivable Loan
Amount:
Up to $12,000
First-time only:
No
DSHA Welcome Home Loan Program
Type:
Government-Insured Mortgage
Amount:
Below-market 30-year fixed-rate first mortgage
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for the programs you're interested in. The Wilmington First Start program requires income at or below 80-100% of area median income, while DSHA programs have limits of $126,480 for 1-2 person households in New Castle County.

  2. Step 2:

    Complete homebuyer education. Contact Housing Opportunities of Northern Delaware (HOND) at 302-429-0794 or Interfaith Community Housing of Delaware (ICHDE) to enroll in a HUD-approved homebuyer education course. This is required for most programs.

  3. 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.

  4. Step 4:

    Apply for the Wilmington First Start Program. Have your lender or housing counselor submit your application through the Neighborly online portal. Contact firststarthousing@wilmingtonde.gov for portal access.

  5. 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 home must be a single-family property within the City of Wilmington for the First Start program.

  6. 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

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