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Delaware Diamond in the Rough Home Loan

Delaware State Housing Authority offers Diamond in the Rough Home Loan to first-time buyers in Delaware: as much as 5% of the home loan, as a deferred loan.

Amount
As much as 5% of the home loan
Type of help
Loan you repay later
Open only to first-time buyers
Yes
Your credit score
At least 620

You get a deferred loan at 0%. Pay it back if you sell, refinance, give the home to someone else or move out.

With a deferred loan there's no monthly cost, but the whole amount comes due once you sell, refinance or finish paying off the first mortgage.

Who qualifies for Delaware Diamond in the Rough Home Loan?

  • Depending on household size, the range is $122,700 to $141,105 in New Castle County and $111,400 to $128,110 in Kent and Sussex.
  • First-time buyers only (usually meaning no home owned during the past three years).
  • Your credit score must be at least 620.
  • This help is paired with the Delaware Mortgage Program Welcome Home as your first mortgage, and you must meet the FHA 203(k) limited program rules.

Your county and household size set most limits. Use our HUD income limits tool to see the median income for your area and how your household compares.

How to apply for Delaware Diamond in the Rough Home Loan

  1. The Delaware State Housing Authority sends this help through its approved lenders. You apply with one of those lenders along with your home loan.
  2. Your lender compares your credit, income and the home with the program's rules, then reserves the money for you.
  3. This help goes to your down payment and closing costs when you close.

For the full rules and to see whether it's taking applications, visit Delaware State Housing Authority's page for Diamond in the Rough Home Loan, or choose a lender from the agency's participating lender list.

Ask a lender about Delaware Diamond in the Rough Home Loan

Tell us where you're buying and a lender that works with Delaware's programs can tell you whether Delaware Diamond in the Rough Home Loan fits you, and what you could combine with it.

Call 866-602-7460

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When you send this request, you agree that one mortgage lender who works with these programs may contact you by email, phone or text, including by automated means, about this request. Agreeing is not a condition of any purchase. We are an independent guide, not a lender or a government agency; only that one lender gets your details, and it may pay us for the introduction. See our about page and privacy notice.

More first-time buyer programs in Delaware

Every Delaware first-time home buyer program · Down payment assistance for every state