What are the main mortgage options for Delaware buyers?

Delaware buyers can choose conventional loans with low rates and PMI that cancels once you owe under 80 percent of the home's value, FHA loans with a 580 credit score and 3.5 percent down or 10 percent down for lower scores, VA loans giving veterans 100 percent financing with a 620 score and no monthly mortgage insurance, and zero-down USDA loans for rural buyers under the income limits.

What homebuyer programs does the Delaware State Housing Authority run?

The Delaware State Housing Authority offers DSHA Homeownership Loans with lower rates for low to moderate-income buyers who have a 620 credit score and a debt ratio of 45 percent or less. The Preferred Plus Assistance program adds 2 to 5 percent of the sales price as an interest-free second loan, and Home for Grads gives recent college graduates a half-percent rate discount.

What credit score do Delaware lenders look for?

FHA loans in Delaware accept a 580 credit score with 3.5 percent down, and lower scores may still qualify with 10 percent down. VA loans look for around 620, DSHA homeownership loans require a 620 score with a maximum 45 percent debt ratio, and conventional loans favor borrowers with strong credit and low outstanding debts.

Delaware (DE) Mortgage Rates

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Current mortgage rates · week of July 2, 2026

6.43% -0.06

30-year fixed

5.79% -0.05

15-year fixed

30-year fixed 15-year fixed last 52 weeks

Week	30-yr / 15-yr fixed
July 2, 2026	6.43% / 5.79%
June 25, 2026	6.49% / 5.84%
June 18, 2026	6.47% / 5.81%
June 11, 2026	6.52% / 5.84%
June 4, 2026	6.48% / 5.79%
May 28, 2026	6.53% / 5.87%
May 21, 2026	6.51% / 5.85%
May 14, 2026	6.36% / 5.71%

U.S. weekly averages — Freddie Mac Primary Mortgage Market Survey via FRED.

Delaware Mortgage Overview

Delaware is the second smallest state in the United States and is also one of the only states with no sales tax. Its median house price is around $250,000 and almost 75 percent of the homes in Delaware are owner-occupied

If you're thinking of moving to Delaware, there are great first-time homebuyer programs available.

Delaware conventional loans

Borrowers with great credit and low outstanding debts may qualify for a conventional loan. These loans aren't backed by the government, so borrowers pay Private Mortgage Insurance if they make less than a 20 percent down payment, but the low interest rates and closing costs are worth it. You can cancel PMI once you owe less than 80 percent of the home's value.

Delaware FHA loans

Borrowers with a lower credit score may do better with FHA financing. FHA loans require just a 580 credit score and a 3.5 percent down payment. Borrowers with a lower credit score may qualify too if they have at least 10 percent down on the home. FHA loans have flexible underwriting requirements, but require mortgage insurance for the life of the loan.

Delaware VA loans

Veterans of the military or any current military member with at least 181 days served may qualify for 100 percent VA financing. With no down payment, veterans need just a 620 credit score and 'decent' debt ratios to qualify. VA loans don't require monthly mortgage insurance either.

Delaware USDA loans

Borrowers looking to live in rural parts of Delaware and who don't make over 115 percent of the area's median income may qualify for a USDA loan. This loan program doesn't require a down payment and has low interest rates and closing costs. USDA loans require monthly mortgage insurance, but it's not as high as other programs.

First-Time Homebuyer Programs in Delaware

The Delaware State Housing Authority has a few great programs for first-time homebuyers:

DSHA Homeownership Loans

The DSHA homeownership loans offer lower interest rates for borrowers with low to moderate-income levels. Borrowers need a 620 credit score and max debt ratio of 45 percent. All borrowers must attend homebuyer education courses.

Down payment assistance

Borrowers using the DSHA homeownership loan may also use the Preferred Plus Assistance program which provides money for the down payment and/or closing costs. The funds are a second loan with no interest and due when you refinance the mortgage or sell the home. Borrowers may get as much as 2 to 5 percent of the sales price for down payment assistance.

Home for grads

Borrowers who recently graduated college (within the last 3 years) with a 4-year degree may qualify for a mortgage rate that's half a percent less than traditional rates.

Delaware mortgage FAQ

What are the main mortgage options for Delaware buyers?: Delaware buyers can choose conventional loans with low rates and PMI that cancels once you owe under 80 percent of the home's value, FHA loans with a 580 credit score and 3.5 percent down or 10 percent down for lower scores, VA loans giving veterans 100 percent financing with a 620 score and no monthly mortgage insurance, and zero-down USDA loans for rural buyers under the income limits.
What homebuyer programs does the Delaware State Housing Authority run?: The Delaware State Housing Authority offers DSHA Homeownership Loans with lower rates for low to moderate-income buyers who have a 620 credit score and a debt ratio of 45 percent or less. The Preferred Plus Assistance program adds 2 to 5 percent of the sales price as an interest-free second loan, and Home for Grads gives recent college graduates a half-percent rate discount.
What credit score do Delaware lenders look for?: FHA loans in Delaware accept a 580 credit score with 3.5 percent down, and lower scores may still qualify with 10 percent down. VA loans look for around 620, DSHA homeownership loans require a 620 score with a maximum 45 percent debt ratio, and conventional loans favor borrowers with strong credit and low outstanding debts.

Delaware Mortgage Rates