Delaware first-time buyers can pair Welcome Home loans with up to 5% down help

Delaware State Housing Authority’s Welcome Home program offers first-time buyers a 30-year fixed-rate mortgage plus up to 5% down payment assistance through zero-interest second mortgages. The program is statewide and can lower upfront costs for borrowers who qualify on income, credit and purchase price.

Why it matters: - Welcome Home can reduce both the rate and the cash needed to buy a home in Delaware. - The program is designed for first-time buyers who need help covering down payments and closing costs. - Buyers can use the assistance without a monthly payment on the second mortgage.

What happened: - Delaware State Housing Authority’s Welcome Home program combines a 30-year fixed-rate first mortgage with down payment assistance of up to 5% of the loan amount. - The program is available to first-time homebuyers in Delaware. - John Thomas, NMLS #38783, said Welcome Home is the strongest first-time buyer program available in Delaware. - Thomas is a Delaware mortgage loan officer with the John Thomas Team in Newark. - The program is available through DSHA-approved lenders, not directly through DSHA. - The John Thomas Team in Newark is a DSHA-approved lender.

The details: - Welcome Home sits on top of an FHA, VA, USDA or Freddie Mac Conventional first mortgage. - DSHA sets a below-market interest rate through its bond program. - The assistance comes through four DPA options: First State Home Loan at 3%, Keys4You at 4%, Take5 at 5%, and Diamond in the Rough at 5% with FHA 203k Limited renovation financing. - Each DPA option is a zero-interest second mortgage with no monthly payment. - The second mortgage is repaid only when the buyer sells, refinances or stops using the home as a primary residence. - Buyers who do not need assistance can choose Smart Start, the unassisted option with the lowest rate. - Take5 and Diamond in the Rough are only available with Welcome Home. - DSHA defines a first-time buyer as someone who has not owned a primary residence in the past three years. - Qualified veterans and buyers in DSHA-designated targeted census tracts can also use the program. - A minimum 620 credit score is required, or 660 for manufactured homes. - Borrowers must also meet county income limits. - Buyers with scores from 620 to 659 must complete an eight-hour HUD-approved housing counseling course before closing. - Buyers with scores of 660 or higher are exempt from the counseling requirement. - For new reservations on or after June 8, 2026, the non-targeted income limit for a one-to-two-person household is $122,700 in New Castle County and $111,400 in Kent and Sussex counties. - Higher income limits apply in targeted areas. - Purchase price limits are $659,385 in New Castle County and $566,354 in Kent and Sussex counties. - Since April 15, 2025, DSHA counts only the income of borrowers actually on the loan. - That rule change can help buyers who assumed household income would push them over the limit. - John Thomas said many buyers mistakenly assume they earn too much to qualify. - John Thomas said the April 2025 income change means a parent, sibling or roommate who is not on the mortgage does not count against the limit.

Between the lines: - The program is most usable in areas where home prices are below the county caps, including much of Kent County and inland Sussex County. - Wilmington, Newark, Bear and Middletown offer the highest limits and the most inventory in New Castle County. - Dover, Smyrna and Milford in Kent County rarely hit the price ceiling. - Seaford and Georgetown in Sussex County tend to fit the program better than beach towns like Lewes and Rehoboth, where prices can exceed the limit. - Thomas has originated DSHA loans in Delaware for more than 20 years. - Thomas has closed more than 1,000 DSHA loans across Delaware’s three counties. - He works with first-time buyers to match the first mortgage and assistance option to income, credit and purchase goals. - The application process runs through an approved lender, so buyer guidance matters before an offer is written.

What's next: - First-time buyers can schedule a free 30-minute consultation at schedule a free 30-minute consultation. - Buyers can also call 302-703-0727 for next steps. - More information is available at the company website. - John Thomas’s office is at 248 E Chestnut Hill Rd, Newark, DE 19713. - Thomas’s broader practice also includes VA, FHA, USDA, DSHA and conventional loans across Delaware and Maryland.

The bottom line: - Delaware buyers who qualify can combine below-market financing with meaningful upfront assistance, making Welcome Home a strong option for first-time purchases.