The New Castle County Department of Community Services offers first-time homebuyers the Down Payment Settlement Program. This program comes in the form of a deferred payment loan, to help cover down payment and closing/settlement costs associated with the purchase of a new home.

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New Castle County Down Payment Settlement Program

Financial Assistance for Homebuyers in Delaware

In an effort to help individuals achieve their dreams of homeownership, the New Castle County Department of Community Services offers first-time homebuyers the Down Payment Settlement Program. This program comes in the form of a deferred payment loan, to help cover down payment and closing/settlement costs associated with the purchase of a new home.

Available Assistance
The Down Payment Settlement loan amount is a minimum of $1,000, and a maximum of $5,000. The amount received by each borrower is determined by a housing counselor. The 8-year loan term is split into two segments: Period 1, consists of the first 3 years which is the deferral period where 3 percent simple interest is accruing and payments are optional. Period 2, is the remaining 5 years when monthly payments are required. If the loan is repaid in full within Period 1, all interest is forgiven. The loan must be repaid in full upon sale of property or transfer of ownership.

Eligibility Requirements
To be eligible for the Down Payment Settlement Program all applicants must meet a certain set of requirements. Applicants must be first-time homebuyers; those who have owned a principal residence in the previous 3 years are not eligible. They are also responsible for contributing at least $500 in cash.

Property Guidelines
The property being purchased must serve as the buyer’s primary residence for the life of the loan. Properties eligible under the Down Payment Settlement Program include existing, residential structures or new constructions located in New Castle County, outside the City of Wilmington. The program’s maximum purchase price for a single dwelling structure is $379,500.

Income Limits
The annual household income of each applicant must fall at or under 80 percent of the area median income for New Castle County (limits are adjusted for family size per HUD Guidelines). Additionally, applicants must complete a Homeownership Education Program approved by the New Castle County and HUD.

1 person household: $45,450
2 person household: $51,950
3 person household: $58,450
4 person household: $64,900
5 person household: $70,100
6 person household: $75,300
7 person household: $80,500
8 person household: $85,700

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)

Down Payment Grants in Delaware

The Delaware State Housing Authority (DSHA) recognizes that many individuals can afford monthly mortgage payments, but don’t have the funds for a down payment on a home. In order to help people get over this hurdle, the DSHA offers eligible homebuyers down payment assistance in the form of the Advantage 4 Program.

The New Castle County Department of Community Services offers first-time homebuyers the Down Payment Settlement Program. This program comes in the form of a deferred payment loan, to help cover down payment and closing/settlement costs associated with the purchase of a new home.

The New Castle County Department of Community Services promotes homeownership through the ReVaMP program, or "Remediating, Vacancies Making Progress.” This program helps to cover the down payment and closing costs for vacant homes in New Castle’s identified areas. 

The Delaware State Housing Authority offers the Second Mortgage Assistance Loan (SMAL). This program provides eligible applicants with a loan of up to $8,000 that can be put toward down payment and closing cost expenses associated with mortgage transactions.

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