Delaware Mortgage Guides

Delaware USDA Loans 2026

Zero-down USDA financing in Delaware — which areas qualify, income limits by county and household size, program requirements, and how to apply.

📖 8 min readUpdated August 2026Delaware · USDA Loans

0%Down payment required

640Recommended min credit score

$141,100Income limit (New Castle, 1–4 person)

30-yearFixed rate only

IN THIS GUIDE

USDA-eligible areas in Delaware
Income limits by Delaware county
USDA loan requirements
How to apply for a Delaware USDA loan
Delaware USDA loan FAQs

USDA-Eligible Areas in Delaware

USDA eligibility is set by property address, not by county or town name. Delaware’s eligible area sits mainly in Kent and Sussex; the Wilmington–Newark corridor in New Castle County is urbanized and largely excluded.

Region	Eligible Areas (Examples)	Notes
New Castle County	Very limited — the Wilmington–Newark urbanized corridor is excluded	Some southern portions of the county may qualify; verify by address
Kent County	Areas outside the Dover urbanized area	Eligibility is determined by property address, not municipality
Sussex County	Inland and rural Sussex, outside the coastal resort corridor	Verify any specific address before relying on eligibility

Do not assume eligibility from a town name. Check the exact property address against the USDA property eligibility map before making an offer — boundaries follow census-defined urbanized areas and can split a single town.

USDA Income Limits by Delaware County (2026)

USDA income limits are set at 115% of area median income and count every adult in the household, not just the borrowers. Delaware’s three counties fall under three different USDA areas.

County / Region	1–4 Person Household (Guaranteed)	5–8 Person Household (Guaranteed)
New Castle County (Philadelphia-Camden-Wilmington MSA)	$141,100	$186,300
Kent County (Dover, DE MSA)	$123,900	$163,550
Sussex County	$123,350	$162,850

Metro-area limits run higher than the standard. USDA publishes a higher moderate-income limit for many metropolitan counties, and those figures change on their own schedule. Rather than print numbers that may be out of date, check your exact county against USDA’s official lookup: USDA income eligibility tool. The authoritative source is HB-1-3555 Appendix 5 (FY 2026, PN 657, effective July 13, 2026).

Figures are the maximum adjusted annual household income for the Section 502 Guaranteed program, taken from the USDA income eligibility tool under guidelines in effect as of September 2026. USDA revises them on its own schedule — confirm before relying on a figure.

Delaware USDA Loan Requirements Overview

Requirement	USDA Standard	Notes
Property location	Must be in a USDA-eligible rural area	Verify the exact address on the USDA eligibility map
Credit score	640+ for automated approval	Some lenders allow manual underwriting below 640
Income limit	At or below 115% of area median income	All household income counts; varies by county
Down payment	0% — 100% financing	Closing costs, including Delaware’s realty transfer tax, may be financed if the appraisal supports it
Primary residence	Required	No investment properties or vacation homes
DTI ratio	29/41% guideline; GUS may approve higher	Standard USDA underwriting applies statewide
Mortgage insurance	1% upfront guarantee fee + 0.35% annual	Lower than FHA mortgage insurance

USDA loans carry some of the lowest fees of any zero-down program in Delaware. The 1% upfront guarantee fee and 0.35% annual fee are significantly lower than FHA mortgage insurance, though eligibility is limited to specific rural Delaware counties like Bedford, Fulton, Potter, and Tioga, and rural portions of many others.

How to Apply for a Delaware USDA Loan

Verify property eligibility — check the exact address on the USDA eligibility map, not the town name.
Calculate household income — include every adult in the household, not just the borrowers.
Check the income limit for your county — $141,100 in New Castle, $123,900 in Kent, $123,350 in Sussex for a 1–4 person household.
Check your credit score — 640 or above clears automated approval; below that, some lenders will underwrite manually.
Find a USDA-approved lender licensed in Delaware.
Budget for the realty transfer tax — USDA requires no down payment, but the buyer’s half of the transfer tax still applies at closing.

Delaware USDA Loan Program FAQs

Which parts of Delaware qualify for a USDA loan?

Eligibility is set by property address rather than county or town. Most eligible area sits in Kent and Sussex counties, outside the Dover urbanized area and the coastal resort corridor. The Wilmington–Newark corridor in New Castle County is urbanized and largely excluded. Boundaries follow census-defined urbanized areas and can split a single town, so check the exact address on the USDA map before making an offer.

What is the USDA income limit in Delaware?

For the Section 502 Guaranteed program with a 1–4 person household, the maximum adjusted annual household income is $141,100 in New Castle County, $123,900 in Kent and $123,350 in Sussex. For households of 5–8 the limits rise to $186,300, $163,550 and $162,850 respectively. All adult household income counts, not just the borrowers’.

Do USDA loans really require no down payment in Delaware?

Yes — USDA guaranteed loans offer 100% financing. You will still owe closing costs, and in Delaware that includes the buyer’s half of the realty transfer tax, which is the largest single closing cost in the state. Those costs can sometimes be financed if the appraisal supports it.

Can I combine a USDA loan with DSHA assistance in Delaware?

The Delaware Mortgage Program covers conventional, FHA, VA and USDA loan types, so a USDA first mortgage can be paired with DSHA down payment and closing cost assistance. Because USDA already requires no down payment, that help is most often applied to closing costs. DSHA requires a minimum 620 credit score, and applicants at 659 or below must complete housing counseling. DSHA income and sales price limits apply on top of USDA’s own income limits.