Not sure which loan program is right for you? Here’s a quick comparison of the most common mortgage options available in Delaware, including FHA, VA, USDA, Conventional, and DSHA down payment assistance programs.

Loan Type	Min Down Payment	Min Credit Score	Best For	Mortgage Insurance	Key Benefit
FHA Loan	10% 3.5%	500+ 580+	First-time buyers or lower credit	Required (monthly + upfront)	Flexible credit guidelines
VA Loan	0%	No official minimum	Veterans & active military	None	No down payment, no MI
USDA Loan	0%	600+	Rural & suburban buyers	Lower than FHA	100% financing in eligible areas
Conventional Loan	3% – 5%	620+	Stronger credit borrowers	Can be removed	Lower long-term cost
DSHA Program	0% – 0.5%	620+	Delaware first-time buyers	Depends on loan type	Up to 5% down payment assistance

Most buyers in Delaware qualify for more than one of these options — the right choice depends on your credit, income, and how much you want to bring to closing. Minimum credit scores can vary based on lender guidelines and overall loan profile.

Buying a home in Delaware requires more than choosing a rate. You need to understand credit guidelines, income calculations, debt-to-income ratios, and down payment options as well as local Delaware Down Payment Assistance Programs.

As a Delaware mortgage loan officer with over 20 years of experience, John R. Thomas helps buyers:

• Understand eligibility before applying
• Compare FHA, VA, USDA, and Conventional options
• Review down payment assistance opportunities
• Plan construction and renovation projects
• Evaluate investor financing strategies

Our approach is education-first. That’s why we host monthly homebuyer seminars and consumer workshops across Delaware.

Delaware offers several programs designed to help Delaware first-time buyers.

Options May Include:

• FHA Loans with only 3.5% Down
• Conventional 3% Down Programs
• USDA 100% Financing (eligible rural areas)
• VA Loans for eligible veterans for 100% financing
• Delaware Down Payment Assistance Programs

These programs vary based on:

• Credit score
• Income limits
• Property location
• Household size

We review your full profile before recommending a strategy.

DSHA Loan Programs in Delaware

The Delaware State Housing Authority (DSHA) offers state-backed assistance programs that may provide down payment and closing cost support for eligible borrowers.

Programs may include:

• DSHA First State Home Loan DPA Program
• DSHA FHA 203(k) with 5% Assistance – Diamond in the Rough
• DSHA Welcome Home for First Time Home Buyers
• DSHA Home Again Program for Repeat Home Buyers

Eligibility is based on:

• Income limits
• Purchase price limits
• Primary residence requirement
• Homebuyer education completion

Not every borrower qualifies for DSHA programs, and they are specific to Delaware purchases.

We help you determine whether a DSHA program fits your situation. Call Delaware Loan Officer John Thomas at 302-703-0727 or APPLY ONLINE

Looking to buy, build, or renovate a home in Delaware?

You don’t need separate loans to purchase and improve a property. Renovation and construction loans allow you to finance everything together — including the home, repairs, upgrades, or even a ground-up build — with one loan and one closing.

These programs are ideal for buyers who want to customize a home, investors improving property value, or homeowners planning major upgrades.

Who These Loans Are Best For

Renovation or construction financing may be a good fit if you:

• Found a home that needs repairs or updates
• Want to renovate after closing instead of paying out of pocket
• Are building a home from the ground up
• Own land and want to construct a new home
• Are upgrading a current home with major improvements
• Want to roll renovation costs into your mortgage

Popular Renovation & Construction Loan Options

Here are some of the most common programs available in Delaware:

• FHA 203(k) Loans – Finance both purchase and renovation with flexible credit requirements
• VA Renovation Loans – Eligible veterans can finance home improvements with no down payment
• Conventional HomeStyle® Loans – Renovation financing for primary, second homes, or investment properties
• CHOICERenovation® Loans – Conventional renovation option with flexible improvements
• One-Time Close Construction Loans – Build a home with a single closing and lock in your rate

Why Renovation & Construction Loans Are Different

Traditional mortgages only finance the home as-is.

These programs allow you to finance the future value of the property — meaning you can buy a home that needs work or build from scratch while keeping everything in one loan.

That means:

• You don’t need separate financing for repairs or construction
• You can customize your home the way you want
• You may increase the property’s value through improvements
• You can avoid multiple closings and additional fees

Talk to a Delaware Renovation & Construction Loan Specialist

Every project is different, and the right loan depends on your goals, timeline, and budget.

Not sure if you should renovate, build, or buy move-in ready? We’ll walk you through the best option for your situation.

Call John Thomas at 302-703-0727 or start your application online to review your options and build the right plan for your situation.

If you don’t qualify for a traditional mortgage, you still have options.

Non-QM (Non-Qualified Mortgage) loans are designed for Delaware homebuyers and real estate investors who don’t fit into standard income or credit guidelines. These programs allow you to qualify using alternative documentation like bank statements, rental income, or assets instead of tax returns.

Whether you’re self-employed, investing in rental property, or recently had a credit event, these loan options can open the door to financing when conventional loans won’t.

Who Non-QM Loans Are Best For

Non-QM financing may be a good fit if you are:

• Self-employed and write off a large portion of your income
• A real estate investor buying or refinancing rental property
• Using 1099 income instead of W-2s
• Looking to qualify based on assets instead of income
• Rebuilding after a bankruptcy, foreclosure, or credit event
• A foreign national or ITIN borrower

Popular Non-QM Loan Options in Delaware

• Bank Statement Loans – qualify using deposits instead of tax returns
• DSCR Loans – qualify based on rental income
• ITIN Home Loans – financing options without a Social Security number
• Asset Qualifier Loans – use assets instead of income
• 1099 Income Loans – designed for independent contractors
• View all Non-QM loan programs – https://delawaremortgageloans.net/non-qm-loans/

Why Non-QM Loans Are Different

Traditional mortgage loans rely heavily on tax returns, W-2 income, and strict debt-to-income ratios.

Non-QM loans take a more flexible approach by allowing alternative ways to verify your ability to repay the loan.

That means:

• You may qualify even if your tax returns show lower income
• You can use real cash flow instead of adjusted income
• You have more flexibility with credit history and recent events

Talk to a Delaware Non-QM Loan Specialist

Every Non-QM loan is different, and the right strategy depends on your income structure, credit profile, and goals.

Call John Thomas at 302-703-0727 or start your application online to review your options and find the best loan for your situation or APPLY ONLINE

Not sure which loan program is right for you? Most buyers in Delaware qualify for more than one option — it just depends on your credit, income, and goals.

Here’s a quick guide to help you understand what might fit your situation best.

If You’re a First-Time Homebuyer

You may benefit from:

• FHA Loans – flexible credit and low down payment
• DSHA Programs – down payment assistance up to 5%
• Conventional 3% Down Loans – lower long-term cost with stronger credit

These options are ideal if you’re trying to minimize upfront costs and get into your first home.

If You Want to Buy With Little or No Money Down

You may benefit from:

• VA Loans – 0% down with no mortgage insurance for eligible veterans
• USDA Loans – 100% financing in eligible areas
• DSHA Assistance Programs – cover most or all of your down payment

These programs are designed to reduce out-of-pocket costs as much as possible.

If You Have Lower Credit or Are Rebuilding

You may benefit from:

• FHA Loans – more flexible credit requirements
• Non-QM Loan Options – alternative qualification methods
• Manual underwriting options depending on your situation

These programs can help you qualify even if your credit isn’t perfect.

If You’re Self-Employed or Don’t Show Income on Tax Returns

You may benefit from:

• Bank Statement Loans – qualify using deposits instead of tax returns
• 1099 Income Loans – designed for contractors
• Asset Qualifier Loans – qualify using savings or investments

These programs focus on real cash flow instead of traditional income documentation.

If You’re Buying an Investment Property

You may benefit from:

• DSCR Loans – qualify based on rental income
• Non-QM Investor Loans – flexible qualification options
• Conventional Investment Loans – for stronger credit profiles

These options are designed specifically for real estate investors.

If You Want to Renovate or Build

You may benefit from:

• FHA 203(k) Loans – purchase and renovate with one loan
• Conventional HomeStyle® Loans – flexible renovation options
• One-Time Close Construction Loans – build with a single closing

These programs allow you to finance improvements or construction into your mortgage.

Not Sure Which Option Fits You Best?

Every situation is different, and the right loan depends on how all the pieces come together.

Call John Thomas at 302-703-0727 or start your application online to review your options and build the right plan for your situation.

We work with buyers and investors across the entire state of Delaware for purchasing or refinancing a home whether it is your primary residence, a second home or an investment property:

• New Castle County
• Kent County
• Sussex County

Both in-person and virtual consultations are available.

If you are purchasing in another state, Primary Residential Mortgage, Inc. is licensed in every state but New York. John Thomas is licensed in the following states and can help you purchase or refinance in any of these states: AL, D.C., DE. FL, GA, IN, KS, MD, MN, MO, NC, NJ, OH, PA, SC, TN, VA, & WV

View our full Mortgage Loan Programs page for national loan options: Mortgage Loan Programs

Delaware Mortgage Loan FAQ

John R. Thomas, NMLS #38783 | Primary Residential Mortgage, Inc. NMLS #3094 | Branch NMLS #106170 | 248 E Chestnut Hill Rd, Newark, DE 19713 | Licensed by the Delaware State Bank Commissioner | Equal Housing Lender | This is not a commitment to lend. All loans subject to credit approval.