Welcome Home Mortgage Program

Welcome Home Mortgage Program

Administrator: Delaware State Housing Authority (DSHA)

Overview:
Competitive mortgage program for first-time homebuyers offering below-market interest rates and financing options through the Smart Start Home Loan Program.

Eligibility:

First-time homebuyers defined as those who have not owned a home as a primary residence in the past three years

Must meet income limits (varies by household size)

Minimum credit score: 620

Must be Delaware resident

Financing Options:

Conventional financing

FHA financing

VA financing

USDA financing

Discounted mortgage rates (in some cases as low as 5.5%)

Combination with Down Payment Assistance:
Can be combined with any of the following DSHA down payment assistance programs:

Home Sweet Home (Temporary)

• Benefit: Zero-interest forgivable second loan of $12,000
• Eligibility: Maximum home purchase price of $285,000
• Forgiveness Structure: Loan balance decreases by 10% annually for 10 years if homeowner maintains primary residence; fully forgiven after 10 years with verification
• 2023 Performance: 180 families received assistance totaling $2,160,000

Delaware Diamonds Home Loan (Temporary)

• Benefit: Zero-interest forgivable second loan of $10,000
• Eligibility: Must work in Delaware in qualifying occupations:
- Delaware State employees - Public and private school employees - Healthcare workers (Bayhealth, Beebe, Nemours, St. Francis, Christiana Care, VA Hospital) - First responders (full-time and volunteer): firefighters, police officers, paramedics, EMTs - Active-duty military - Qualified veterans
• Forgiveness Structure: Same as Home Sweet Home (10% annually, 10-year full forgiveness)
• 2023 Performance: 147 families received assistance totaling $2,148,000

First State Home Loan

• Benefit: Zero-interest second loan providing 3% of the first mortgage final loan amount
• Repayment: Principal deferred until refinance, sale, transfer of title, or property is no longer primary residence (whichever comes first)

Geographic Scope: Statewide

Contact Information:
Delaware State Housing Authority
Phone: (302) 739-4263 or (888) 363-8808
Email: dsha_contactdsha@delaware.gov
Website: https://kissyourlandlordgoodbye.com/

Additional Support:

HUD-approved housing counseling available to help improve credit scores

Participating lender network throughout state