Delaware State Housing Authority (DSHA) Preferred Plus Program

In an effort to help residents purchase homes instead of staying in rented apartments for years to come, the Delaware State Authority offers eligible applicants affordable home loans and down payment assistance.  

Available Assistance 

A DSHA mortgage is a 30-year, fixed-rate loan with interest rates at or below the standard market rate for qualified buyers. These loans work through standard mortgage programs, including conventional, VA, FHA, and USDA mortgages. All applicants using a DSHA Homeownership Loan can use the flexible, customized Preferred Plus assistance, which provides a no-interest second mortgage loan of 2% to 5% of the overall loan amount. These funds can be applied toward the down payment or closing costs. The loan must be repaid upon the sale, transfer, or refinance of the home, or when it is no longer the borrower’s primary residence. 

  

Eligibility 

• Maximum household income must be at or below the following limits:  
  • New Castle County. 1-2 people: $113,400. 3 or more people: $141,750 
  • Kent & Sussex County. 1-2 people: $99,600. 3 or more people: $124,500 
• Minimum credit score of 620. (Applicants with credit scores of 659 or below must participate in housing counseling.) 
• Maximum loan amount is $417,000. There is no purchase price limit. 

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.           
  

Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information