Delaware FHA Loan Requirements 2026
FHA loan limits for all three Delaware counties, credit score and debt-to-income requirements, mortgage insurance premiums, and how FHA pairs with DSHA down payment assistance.
FHA Loan Limits by Delaware County (2026)
Delaware has three counties. New Castle sits above the national FHA floor on the strength of the Philadelphia-Camden-Wilmington metro; Kent and Sussex are both at the floor.
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| New Castle | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Kent | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Sussex | $541,287 | $693,050 | $837,700 | $1,041,125 |
New Castle County is the only Delaware county above the 2026 FHA floor of $541,287. Confirm any county against HUD’s FHA Mortgage Limits lookup — limits are reset each January.
Delaware FHA Loan Requirements Overview
| Requirement | Standard FHA | Notes |
|---|---|---|
| Minimum credit score | 580 (3.5% down); 500–579 (10% down) | Many Delaware lenders overlay to 620+ |
| Down payment | 3.5% of purchase price | Can be paired with DSHA deferred assistance |
| Debt-to-income ratio | Up to 57% with strong compensating factors | 43% preferred by most lenders |
| Primary residence | Required | Owner-occupied only |
| Property condition | Must meet FHA Minimum Property Standards | Coastal Sussex: confirm flood zone and elevation certificate |
FHA Mortgage Insurance Premiums (MIP)
| MIP Type | Rate | On a $400,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $7,000 (typically financed) |
| Annual MIP (monthly) | 0.55%/yr (30-yr, LTV 95%+) | ~$183/mo |
MIP cancellation: FHA MIP is permanent on loans originated after June 3, 2013, with less than 10% down payment. For Delaware buyers who put down 10% or more, MIP cancels after 11 years. Many Delaware borrowers refinance into a conventional loan once they reach 20% equity to eliminate MIP.
FHA vs. Conventional in Delaware
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Down payment | 3.5% | 3–20% |
| Mortgage insurance | MIP (permanent with <10% down) | PMI (cancels at 80% LTV) |
| Max loan limit (New Castle County) | $630,200 | Conforming limit applies ($832,750) |
| DSHA pairing | Yes — Take5 or Keys4You can cover the down payment and some costs | Yes — DSHA offers conventional first mortgages with the same deferred seconds |
| Best for | Lower credit, gift or assistance funds, first-time buyers | 680+ credit, plans to cancel PMI, stronger assets |
DSHA Assistance + FHA Combination
DSHA calculates its deferred second mortgages as a percentage of the first mortgage amount, not the purchase price. On an FHA loan with 3.5% down, Take5 covers the full down payment with room to spare.
| Item | Amount |
|---|---|
| Purchase price | $350,000 |
| FHA down payment (3.5%) | $12,250 |
| First mortgage amount | $337,750 |
| Take5 assistance (5% of first mortgage) | $16,888 |
| Net down payment from buyer | $0 — assistance covers the down payment and part of closing costs |
Take5 carries no interest and no monthly payment. It becomes due only on refinance, sale, transfer of title, or when the home stops being your primary residence. Minimum credit score is 620, and applicants at 659 or below must complete housing counseling. Current terms at destatehousing.com.
