Delaware Mortgage Guide 2026
This Delaware mortgage guide covers everything you need to know about getting a mortgage in Delaware — FHA loan limits for all three counties, DSHA down payment assistance, property taxes, closing costs, and the 2026 market.
Delaware Mortgage Guide: Loan Limits by County (2026)
Delaware has just three counties, and all three share the same conforming loan limit. Only New Castle County carries an FHA limit above the 2026 national floor.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| New Castle | $832,750 | $630,200 | Philadelphia-Camden-Wilmington metro — the only Delaware county above the FHA floor |
| Kent | $832,750 | $541,287 | Dover metro — at the 2026 national FHA floor |
| Sussex | $832,750 | $541,287 | Seaford metro — at the 2026 national FHA floor |
All three Delaware counties share the $832,750 conforming limit — the 2026 national baseline — and Delaware has no high-cost conforming area. Verify any county against HUD’s FHA Mortgage Limits lookup and the FHFA county loan limit file before relying on a figure.
Loan Programs Available in Delaware
Down payment and credit thresholds below reflect common lender practice rather than published agency floors, and apply nationally rather than only in Delaware.
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Kent and Sussex buyers in eligible rural areas |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| DSHA Welcome Home | 3.5% (FHA) or 3% (conventional) | 620 | First-time buyers wanting DSHA assistance |
| DSHA Open Door | 3.5% (FHA) or 3% (conventional) | 620 | First-time and repeat buyers |
DSHA Down Payment Assistance Programs
The Delaware State Housing Authority runs the Delaware Mortgage Program — 30-year fixed-rate first mortgages, paired with a choice of deferred second mortgages for down payment and closing costs.
| Program | Assistance Amount | Structure | Key Requirements |
|---|---|---|---|
| Smart Start Home Loan | None | First mortgage only, no assistance | 620 credit; counseling at 659 or below |
| First State Home Loan | 3% of the first mortgage amount | Zero-interest second, no monthly payment, deferred | 620 credit; income and sales price limits |
| Keys4You Home Loan | 4% of the first mortgage amount | Zero-interest second, no monthly payment, deferred | 620 credit; income and sales price limits |
| Take5 Home Loan | 5% of the first mortgage amount | Zero-interest second, no monthly payment, deferred | 620 credit; income and sales price limits |
| Diamond in the Rough | 5% of the first mortgage amount | Zero-interest second, no monthly payment, deferred | Must qualify for the FHA 203(k) limited program |
DSHA assistance comes in two tracks. Welcome Home is for first-time buyers and opens all five loans; Open Door serves first-time and repeat buyers with Smart Start, First State and Keys4You. Welcome Home income limits run $122,700 (1–2 person) and $141,105 (3 or more) in New Castle, and $111,400 / $128,110 in Kent and Sussex. Open Door limits are higher — $147,240 / $184,050 in New Castle and $133,680 / $167,100 in Kent and Sussex. Purchase price caps are $659,385 in New Castle and $566,354 in Kent and Sussex. Confirm current terms at destatehousing.com.
Delaware Property Taxes
Delaware has some of the lowest effective property tax rates in the country. Property tax is assessed and collected by the three counties, not by the State of Delaware.
The estimates below apply the statewide effective rate of roughly 0.50% (Est.), derived from Census ACS 2024 5-year data. New Castle County runs higher at about 0.71% (Est.), while Kent is near 0.43% and Sussex near 0.32%.
| Purchase Price | Est. Annual Tax (0.50%) | Monthly Escrow |
|---|---|---|
| $250,000 | $1,250 | ~$104 |
| $350,000 | $1,750 | ~$146 |
| $450,000 | $2,250 | ~$188 |
| $600,000 | $3,000 | ~$250 |
Closing Costs in Delaware
Delaware’s realty transfer tax is the single largest closing cost for most buyers. The third-party fee ranges below are approximate and vary by lender and settlement company; the transfer tax and recording fees are set by statute and county ordinance.
| Fee | Typical Amount | On a $350,000 Purchase |
|---|---|---|
| Realty transfer tax (buyer’s half) | 2% of price in most jurisdictions | $7,000 — or $5,250 for a qualifying first-time buyer |
| Loan origination fee | 0–1% of loan | $0–$3,500 |
| Owner’s title insurance | Based on purchase price | ~$1,200–$2,000 |
| Lender’s title insurance | Based on loan amount | ~$700–$1,200 |
| Settlement / closing fee | Often split between parties | ~$800–$1,500 |
| Appraisal | Paid upfront or at closing | ~$500–$700 |
| Recording fees | Per document, county-set | New Castle $13/page · Kent $36 + $10/page · Sussex $30 + $1 + $9/page |
| Homeowner’s insurance (prepaid) | First year premium | ~$800–$1,500 |
Delaware’s realty transfer tax is 3% at the state level, dropping to 2.5% where the county or municipality has enacted its own 1.5% levy — which the Delaware Division of Revenue reports is the case in most jurisdictions, for a combined 4%. The tax is apportioned equally between grantor and grantee unless the contract says otherwise, and qualifying first-time buyers receive a 0.5% reduction on their half, applied to the lesser of the purchase price or $400,000.
Delaware Housing Market Overview (2026)
Delaware’s three counties differ sharply in loan limits, tax burden and USDA eligibility.
| Area | Market Notes |
|---|---|
| New Castle County | Wilmington and the Philadelphia-Camden-Wilmington metro. The only Delaware county with an FHA limit above the national floor, at $630,200, and the highest effective property tax rate in the state at roughly 0.71% (Est.). |
| Kent County | The Dover metro. FHA limit sits at the $541,287 national floor and effective property tax runs near 0.43% (Est.). Much of the county falls within USDA-eligible rural area. |
| Sussex County | Seaford and the coastal communities. FHA limit at the national floor, the lowest effective property tax in the state at about 0.32% (Est.), and the highest median home value of the three counties. |
