See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated March 31, 2026

Homebuyer Programs in Wilmington, DE (2026)

Population: 74,000 | Median home price: $225,000 | Est. closing costs: $4,500 - $7,000

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.

City Programs in Wilmington

Program Name	Type	Amount	First-Time Only	Details
Wilmington First Start Homebuyer Program	Grant	Up to $15,000 or 6% of the purchase price, whichever is less	Yes	View →

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

County Programs in New Castle County

Program Name	Type	Amount	First-Time Only	Details
New Castle County Down Payment Settlement Program	Deferred Loan	Up to $5,000 (minimum $1,000)	Yes	View →
New Castle County ReVaMP Program	Forgivable Loan	Up to $5,000	No	View →

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

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 →

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 $75,000 for renovations
First-time only:: No

DSHA First State Home Loan DPA

Type:: Deferred Loan
Amount:: 3% of the first mortgage loan amount
First-time only:: No

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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of New Castle County Homeownership Program	Zero-Interest Loan	Affordable home sold at construction cost with 0% interest mortgage	No	View →

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

Free eligibility check

18 programs available in Wilmington. See which ones you qualify for.

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How to Apply

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.

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.

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 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.

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.

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 Wilmington?+

Wilmington homebuyers can access significant assistance by stacking multiple programs. The Wilmington First Start Homebuyer Program provides up to $15,000 (or 6% of purchase price). The DSHA Home Sweet Home Program offers a $12,000 forgivable loan. The DSHA First State DPA provides 3% of your first mortgage amount. The DSHA Diamond in the Rough Program offers 5% DPA plus up to $35,000 for renovations. By combining city and state programs, eligible buyers could receive over $27,000 in direct assistance, plus annual tax credits through the Delaware Mortgage Credit Certificate.

Do I have to be a first-time homebuyer to qualify?+

Not for all programs. The Wilmington First Start program and the DSHA First State DPA require first-time buyer status (no homeownership in the past 3 years), though displaced homemakers and single parents also qualify for First Start. However, the DSHA Home Again Loan, the Home Sweet Home $12,000 forgivable loan, and the Diamond in the Rough renovation program are available to both first-time and repeat buyers.

What is the maximum home price I can pay?+

It depends on the program. The DSHA Home Sweet Home Program has a maximum sales price of $285,000. The New Castle County Down Payment Settlement Program (for properties outside Wilmington city limits) has a maximum of $379,500. The Wilmington First Start program and other DSHA programs do not have a specific purchase price cap, but your home must be affordable based on your income and loan terms.

What homebuyer education is required?+

Most programs require completion of a HUD-approved homebuyer education course. In the Wilmington area, you can take courses through Housing Opportunities of Northern Delaware (HOND) at 302-429-0794 or Interfaith Community Housing of Delaware (ICHDE). DSHA also requires borrowers with credit scores of 659 or below to participate in housing counseling. The Wilmington First Start program requires working with a housing counselor who submits your application.

Can I combine the Wilmington First Start program with DSHA state programs?+

Yes. The Wilmington First Start Homebuyer Program can be layered with DSHA programs. A common combination is the First Start ($15,000) plus a DSHA first mortgage (Welcome Home or Home Again) plus either the Home Sweet Home ($12,000 forgivable loan) or the First State DPA (3%). You can also add the Delaware Mortgage Credit Certificate for up to $2,000 per year in tax credits. Work with a DSHA-approved lender to determine the best combination for your situation.

What credit score do I need to buy a home in Wilmington?+

DSHA programs require a minimum credit score of 620, with borrowers scoring 659 or below required to complete housing counseling. The DSHA Diamond in the Rough renovation program requires a higher minimum of 640. Habitat for Humanity of New Castle County also requires a minimum score of 620. The Wilmington First Start program does not specify a minimum credit score, but your lender will have their own requirements.