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About the DSHA Home Again Loan Program
The DSHA Home Again Loan Program provides a below-market 30-year fixed-rate first mortgage through the Delaware State Housing Authority for buyers who do not meet the requirements of the Welcome Home program or who are repeat homebuyers. As of April 2026, this program has been rebranded as the "Open Door" track under DSHA's new Delaware Mortgage Program, but the underlying structure remains the same: a competitive interest rate set through DSHA's bond funding that is typically lower than what buyers would find on the open market.
Home Again (Open Door) is open to both first-time and repeat Delaware homebuyers, making it the go-to DSHA first mortgage for anyone who has owned a home before or whose income exceeds the Welcome Home limits. Income limits are higher than Welcome Home: $126,480 for one to two person households in New Castle County and $116,280 in Kent and Sussex counties for non-targeted areas. The minimum credit score is 620, and buyers with scores below 660 must complete 8 hours of HUD-approved homebuyer counseling. The program works with FHA, VA, USDA, and conventional loan types, and the property must be located in Delaware and used as a primary residence.
What sets the DSHA Home Again Loan Program apart from a standard mortgage is the combination of the below-market rate with access to DSHA down payment assistance. Buyers can pair Home Again with the DSHA First State Home Loan DPA (3%) or Keys4You (4%) to get both a lower interest rate and help with upfront costs. The DSHA Welcome Home Loan Program offers additional DPA options like Take5 (5%) and Diamond in the Rough (5% + renovation financing) but is limited to first-time buyers.
How much assistance
Eligibility
- Income limits: Higher income limits than Welcome Home program. New Castle County: $126,480 (1-2 persons), $158,100 (3+ persons). Kent and Sussex counties: $116,280 (1-2 persons), $145,350 (3+ persons).
- First-time buyer required: No
- Credit score minimum: 620
- Geographic restrictions: Must purchase within the State of Delaware.
- Homebuyer education required: Yes
How to Apply for DSHA Home Again Loan Program
Step 1: Check your eligibility
Open Door, the new name for Home Again, takes first-time and repeat buyers alike, as long as the home will be their primary residence in Delaware. Outside targeted areas, a household of one or two can earn up to $126,480 in New Castle County or $116,280 in Kent and Sussex, and larger households get higher caps. Credit scores start at 620. Visit destatehousing.com/mortgages for the most current income and purchase price limits.
Step 2: Complete homebuyer education if required
Borrowers with a score of 660 or higher can skip this step. If anyone on the loan is below 660, DSHA wants 8 hours of HUD-approved homebuyer counseling finished before closing, through a counseling agency in Delaware. Expect to pay about $75 to $150, and the certificate stays good for 12 months, so it can be done early in the search.
Step 3: Contact a DSHA-approved lender
DSHA does not accept direct applications. Start with a lender from DSHA's preferred list at destatehousing.com/top-10-lenders. The lender will process your first mortgage and any DPA second mortgage as a single application. The DSHA interest rate is the same regardless of which approved lender you use. General questions about Open Door go to DSHA at (302) 739-4263.
Step 4: Get pre-approved
Hand over ID, recent bank statements (two months), pay stubs covering 30 days, and two years of tax returns. Your lender will verify your income against Open Door limits, confirm your credit score, and determine your maximum purchase price. A household member who is not on the Note and Mortgage does not count toward the income limit.
Step 5: Choose your DPA option
Decide whether to pair Home Again with First State (3%), Keys4You (4%), or Smart Start (no DPA). Your lender can run side-by-side comparisons showing the down payment coverage and out-of-pocket costs for each option on your specific purchase price. On a $225,000 Wilmington purchase, First State would bring roughly $6,630 and Keys4You roughly $8,840.
Step 6: Find a home and close
DSHA caps the purchase price by county, so check the limit where you are shopping before you make an offer on a Delaware primary residence. Eligible property types include single-family homes, townhomes, condominiums, PUDs, manufactured homes (660 credit minimum), and 1-4 unit properties. Settlement usually follows the contract by 30 to 45 days.
Real Cost Example
On a $225,000 home in Wilmington, a buyer using the DSHA Home Again Loan Program (Open Door track) with an FHA first mortgage needs a minimum 3.5% down payment of $7,875. The DSHA below-market interest rate is typically 0.25% to 0.75% lower than conventional market rates. At a hypothetical DSHA rate of 5.75% versus a market rate of 6.25%, the monthly principal and interest payment on a $221,000 loan would be approximately $1,290 versus $1,361, saving about $71 per month or $852 per year.
Pairing Home Again with the DSHA First State Home Loan DPA (3%) provides roughly $6,630 toward the $7,875 down payment, leaving about $1,245 plus closing costs of $4,500 to $7,000 out of pocket. Choosing Keys4You (4%) instead would provide roughly $8,840, fully covering the down payment with about $965 left for closing costs.
For the strongest combination available to repeat buyers in Delaware, pairing Home Again with Keys4You (4%) and the Delaware First-Time Homebuyer Tax Credit (MCC) provides both upfront down payment assistance and up to $2,000 per year in ongoing federal tax savings, though MCC availability for repeat buyers depends on purchasing in a DSHA-designated targeted area.
Combining With Other Programs
The DSHA Home Again Loan Program (Open Door track) is a first mortgage, not a DPA, so it must be paired with a separate DSHA DPA option. The DPA options available under the Open Door track are the DSHA First State Home Loan DPA (3% deferred), Keys4You (4% deferred), and Smart Start (first mortgage only, no DPA). Take5 (5%) and DSHA Diamond in the Rough (5% + FHA 203k renovation) are only available under the Welcome Home track and cannot be paired with Home Again.
DSHA allows only one DPA second mortgage per transaction, so buyers using Home Again choose either First State or Keys4You but not both. The DSHA Home Sweet Home Program (up to $12,000 forgivable) and Delaware Diamonds Home Loan ($10,000 forgivable for essential workers) are also limited to one DPA per transaction.
The Delaware First-Time Homebuyer Tax Credit (MCC) can be layered on top of Home Again plus any DPA because the MCC is a tax credit, not a second mortgage. The MCC provides up to $2,000 per year in federal tax credits, though repeat buyers may need to purchase in a DSHA-designated targeted area to qualify for the MCC.
Pros and Cons
The DSHA Home Again Loan Program is the primary path for repeat homebuyers to access DSHA's below-market interest rates and down payment assistance in Delaware. The interest rate is set through DSHA's bond funding and is typically 0.25% to 0.75% lower than conventional market rates, which translates to meaningful monthly savings over the life of a 30-year mortgage. The program pairs with Keys4You (4%) for the largest percentage-based DPA available to repeat buyers, and the higher income limits compared to DSHA Welcome Home mean more dual-income households and mid-career professionals qualify.
The main limitation is that repeat buyers cannot access DSHA's highest-value DPA options. Take5 (5%) and Diamond in the Rough (5% + renovation financing) are Welcome Home exclusives, so the maximum percentage-based DPA for Home Again buyers is 4% through Keys4You. The DSHA Home Sweet Home Program offers up to $12,000 as a forgivable grant, but as a separate DPA it cannot be stacked with First State or Keys4You. Buyers who are borderline on the first-time buyer definition (have not owned in the past 3 years) should check whether they qualify for Welcome Home first, since it unlocks the full range of DPA options.
Frequently Asked Questions
Do I have to be a first-time homebuyer to use the DSHA Home Again Loan Program?+−
What is the difference between Home Again and Welcome Home?+−
Can I combine the Home Again loan with down payment assistance?+−
What types of mortgages work with the Home Again program?+−
Has the Home Again program been renamed or changed?+−
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Program details last verified: May 13, 2026