Delaware VA Loan Requirements 2026
VA loan eligibility and requirements for Delaware veterans — zero down payment, no mortgage insurance, funding fee rates and exemptions, and how a VA loan pairs with DSHA assistance.
VA Loan Eligibility
| Service Category | Minimum Service Requirement |
|---|---|
| Active duty (wartime) | 90 continuous days |
| Active duty (peacetime) | 181 continuous days |
| National Guard / Reserves | 6 years, or 90 days active duty under Title 10 |
| Surviving spouse | Spouse of veteran who died in service or from service-connected disability |
Delaware National Guard members qualify. Delaware Army and Air National Guard members who have completed 6 years of satisfactory service, or have been activated under federal Title 10 orders for at least 90 days, are eligible for VA loan benefits. The Delaware National Guard’s Joint Force Headquarters is based at Fort Indiantown Gap in Annville.
Delaware Military Presence
Delaware has one major active-duty installation. VA loan demand concentrates around the Dover metro in Kent County, where FHA and conforming limits sit at the national floor and DSHA assistance is available statewide.
| Installation | Location | Notes |
|---|---|---|
| Dover Air Force Base | Dover, Kent County | Delaware’s principal military installation and the largest driver of VA loan activity in the state |
| Delaware National Guard | Statewide | Guard and Reserve members qualify after 6 years of service, or 90 days of active duty under Title 10 |
VA Loan Benefits in Delaware
Delaware is home to roughly 59,557 veterans, and Dover Air Force Base in Kent County — home of the 436th Airlift Wing — is the state’s principal military installation. VA loans are widely used and accepted throughout Delaware’s housing markets.
- No down payment required — 100% financing with full entitlement
- No private mortgage insurance (PMI) — Saves significantly on Delaware’s mid-range home prices
- No VA loan limit with full entitlement — Purchase any-priced home with zero down
- Competitive rates — Typically 0.25%–0.50% below conventional rates
- Exempt from PMI-equivalent costs that would otherwise apply to low or zero-down conventional financing
Delaware VA Loan Requirements Overview
| Requirement | VA Standard | Notes |
|---|---|---|
| Certificate of Eligibility (COE) | Required | Lender can obtain on your behalf in most cases |
| Credit score | No VA minimum | Most Delaware lenders require 580–620+ |
| Debt-to-income ratio | VA guideline: 41%; lenders may approve higher | Residual income also evaluated |
| Primary residence | Required — VA is for owner-occupied only | Must occupy within 60 days of closing |
| VA appraisal | Required — separate from inspection | VA appraiser assigned by VA regional office |
| Property type | 1–4 family, approved condos, manufactured homes on owned land | Rowhomes and twin homes are eligible if they meet VA Minimum Property Requirements |
VA Funding Fee
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (no down payment) | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing VA with DSHA Down Payment Assistance
A VA loan already requires no down payment, so DSHA assistance is most useful for covering closing costs rather than the down payment itself.
| Feature | Standalone VA Loan | VA + DSHA Keys4You |
|---|---|---|
| Down payment | $0 | $0 |
| Closing cost help | None — paid by buyer or seller credit | Zero-interest second worth 4% of the first mortgage amount |
| Funding fee | 2.15% first use, financed into the loan | Same — the DSHA second does not change the fee |
| Repayment of assistance | n/a | Deferred until refinance, sale, transfer of title, or the home is no longer primary |
| Minimum credit score | No VA minimum; lenders typically 580–620+ | 620 required by DSHA |
Ask your lender whether combining VA financing with DSHA’s Delaware Mortgage Program makes sense for your situation — it can be useful for veterans who want to preserve cash reserves to cover Delaware’s realty transfer tax even without needing a down payment. Confirm current terms at destatehousing.com.
