DSHA Delaware Diamonds DPA Program — $10,000 for Delaware Essential Workers (2026 Guide)

I’m John Thomas, NMLS #38783, branch manager at Primary Residential Mortgage in Newark, Delaware, and I’ve been originating DSHA loans for over 20 years. The Delaware Diamonds program is one I’ve helped hundreds of Delaware essential workers use since DSHA first launched it — and the question I get most often is, “John, do I really qualify? My job isn’t on the list I saw.” Half the time, the answer is yes — and people leave $10,000 on the table because they read a short summary and assumed they didn’t fit. The list is broader than most people realize, the rules around how the $10,000 is forgiven are clearer than they look, and the way Diamonds layers on top of a DSHA Welcome Home or Open Door first mortgage is what makes it powerful. This page is the complete 2026 guide. If you’re a teacher, nurse, first responder, veteran, state employee, or work for one of the qualifying grocery/retail chains in Delaware, read this top-to-bottom — and then call me at 302-703-0727 to find out what you actually qualify for.

Delaware Diamonds DPA — Program at a Glance

What is the Delaware Diamonds DPA Program?

The DSHA Delaware Diamonds Home Loan — historically marketed as the “Delaware Diamond DPA Program” — is a down payment assistance loan from the Delaware State Housing Authority (DSHA) designed specifically for Delaware essential workers. It’s a $10,000 zero-interest, forgivable second mortgage that you use toward your down payment and/or closing costs when buying a primary residence in Delaware.

The program first launched at $15,000, was reduced to $10,000 in its second funding cycle, and has stayed at $10,000 since. Funding moves in waves — when DSHA issues new bonds, the program reopens; when the allocation runs out, the program pauses until the next cycle. In 2023 alone, 147 Delaware families used Diamonds, totaling $2.148 million in disbursed assistance. Demand consistently outpaces supply, which is why getting on an approved DSHA lender’s notification list before the next reopening matters.

Diamonds is not a standalone loan. You always pair it with a DSHA first mortgage — under the April 16, 2026 DSHA Delaware Mortgage Program rebrand, that means either DSHA Welcome Home (for first-time buyers) or DSHA Open Door (for first-time + repeat buyers). The Diamonds DPA itself stays the same; the first mortgage program just determines which income limits and underwriting overlay apply.

Who Qualifies as a Delaware Essential Worker?

This is the question I get more than any other. DSHA defines “essential worker” by occupation category and qualifying employer — not by job title alone. If you’re on the loan with a co-borrower, only one borrower needs to be an essential worker for the household to qualify. You also must have been employed in your essential worker role for at least 6 months prior to your loan application and currently be a Delaware resident.

Here are the qualifying occupation categories under the current DSHA Diamonds guidelines:

• Veterans and Active-Duty Military — Army, Navy, Air Force, Marines, Coast Guard, Space Force, National Guard, and Reserves.
• Education — Employees of public or private school districts; employees of licensed Delaware childcare facilities; licensed registered home childcare providers.
• Medical and Healthcare — Employees of Delaware hospitals (including Bayhealth, Beebe Healthcare, Nemours, Saint Francis Healthcare, ChristianaCare, and the VA Hospital); Registered Nurses (RN); Licensed Practical Nurses (LPN); Advanced Practice Registered Nurses (APRN); Certified Nursing Assistants; Health Care Practitioners; Physicians and Physician Assistants; Social Workers; Nursing Home employees.
• First Responders — Firefighters, police officers, Emergency Medical Technicians (EMT), paramedics, and qualifying volunteer first-responders.
• Grocery Store Employees — Employees of these chains: Acme, Giant, Wegmans, ShopRite, Food Lion, Redner’s, Lidl, Janssens’ Market, Weis Markets, Zingo’s, Safeway, Aldi, and Trader Joe’s.
• General & Wholesale Merchandise Retailers — Employees of these chains only: Walmart, Target, Costco, Sam’s Club, and BJ’s Wholesale.
• State of Delaware Employees — Anyone employed directly by the State of Delaware.

If you’re not sure whether your employer or job title qualifies — call. I review the current DSHA-approved employer list every time it updates, and I’ll tell you in one conversation whether you fit.

How Does the $10,000 Forgivable Loan Work?

Diamonds is structured as a zero-interest second mortgage recorded against the property. You don’t make any monthly payments on it. The loan is forgiven at 10% per year for as long as you live in the home as your primary residence. After 10 years, the entire $10,000 is forgiven and you owe nothing.

If you sell, refinance, or stop using the home as your primary residence before the 10-year mark, you owe back a prorated portion of the original $10,000. Here’s the year-by-year forgiveness schedule:

If you change jobs after closing — even out of an essential worker role — that does not trigger repayment. The eligibility test is at the time of application. As long as you continue using the property as your primary residence, the forgiveness clock keeps ticking.

How Does Diamonds Compare to Delaware’s Other DSHA DPAs?

Diamonds is one of five DSHA down payment assistance programs available under the Delaware Mortgage Program. Each DPA has different qualification rules, dollar amounts, and first-mortgage pairings. This is the side-by-side breakdown most buyers want to see:

Important: Diamonds is a flat $10,000, while the others are percentage-based. On smaller loan amounts, Diamonds is often the largest DPA you can access. On loans over ~$250,000–$330,000, First State (3%), Keys4You (4%), or Take5 (5%) may produce more dollars. The right answer depends on your loan size, profession, and whether you’re a first-time or repeat buyer — that’s exactly what a 30-minute pre-approval call sorts out.

What Are the Income Limits for the Delaware Diamonds Program?

Income eligibility for Diamonds is tied to the income limits of the DSHA first mortgage you pair it with — Welcome Home or Open Door. Welcome Home has lower income limits and is for first-time buyers only. Open Door has higher income limits and accepts both first-time and repeat buyers. For both first-mortgage programs, only the income of borrowers on the Note and Mortgage is counted (not all household members) — though household size still sets the limit tier.

Income limits are set per county and per household size, and DSHA updates them as bond cycles allow. Welcome Home limits in non-targeted areas are currently $119,400 (1–2 person) for New Castle County and $108,800 (1–2 person) for Kent and Sussex counties. Open Door limits are higher — and they shift more often, so I always confirm the current figure on the phone before issuing a pre-approval.

Targeted-area income limits are significantly higher and waive the first-time buyer requirement statewide for properties in DSHA-designated targeted census tracts. If you’re looking at a property in a targeted area, the math changes a lot in your favor. Call 302-703-0727 and I’ll pull the current income limit chart for your specific county and household size before we file anything.

What Properties Can I Buy with the Delaware Diamonds DPA?

Diamonds follows the eligible-property rules of the DSHA first mortgage you pair it with. The property must be located in Delaware (New Castle, Kent, or Sussex County), it must become your primary residence, and it must fit one of these property types:

• Single-family detached residence
• Townhomes and row homes
• Warrantable condominiums
• Planned Unit Developments (PUDs)
• Manufactured homes meeting DSHA guidelines (660 minimum credit score)
• 1–4 unit properties — as long as you live in one of the units

Properties that do not qualify: rental/investment properties, second homes, co-ops, and non-warrantable condos.

There’s also a maximum sales price per county that DSHA updates with each new bond cycle. The current limits run higher in New Castle County than in Kent or Sussex. If you’re shopping at the upper end of your county’s price range, this matters — call before you submit an offer so we can confirm the current cap.

Heads-Up on Delaware’s 4% Transfer Tax

One of the biggest reasons buyers use Diamonds is to cover Delaware’s 4% transfer tax — which on a $300,000 home is $12,000. The standard Delaware Association of Realtors (DAR) sales contract splits the transfer tax equally: 2% buyer / 2% seller. So on a $300,000 home, your buyer-side share is $6,000 — and Diamonds’ $10,000 covers all of that plus other closing costs.

For the full Delaware closing-cost breakdown — title, recording, attorney fees, escrow setup, and pre-paids — see my Understanding Seller-Paid Closing Costs guide.

Do I Apply Through DSHA or Through a DSHA-Approved Lender?

You apply through a DSHA-approved lender — not through DSHA directly. DSHA is the state agency that funds the program and sets the rules, but it does not take individual loan applications. Instead, DSHA partners with a network of approved Delaware mortgage lenders, and only those lenders are authorized to originate, underwrite, and submit Diamonds files to DSHA’s mortgage division.

This is the same setup DSHA uses on its own website — the Delaware State Housing Authority directs prospective buyers to “contact a DSHA-trusted lender” as the first step. Primary Residential Mortgage is one of those lenders, and I’ve been originating DSHA loans since the Diamonds program existed. Working with an approved lender who actually knows the program — versus a national lender who has only heard of it — is the single biggest factor in whether your reservation goes through clean and on time.

How Do I Apply for the Delaware Diamonds DPA Program?

You can’t apply directly to DSHA — Diamonds is only available through DSHA-approved lenders. Primary Residential Mortgage is one of them, and I’ve been originating DSHA loans since the program existed. Here’s the process:

• Step 1 — Initial call. Call 302-703-0727 or schedule a 30-minute appointment. We confirm essential worker eligibility, confirm Diamonds funding status, and identify the right first-mortgage pairing (Welcome Home vs. Open Door).
• Step 2 — Credit pull and pre-approval. We start with a soft credit pull, then collect income, employment, and asset documentation for the full pre-approval. The minimum credit score for Diamonds is 620; if you’re between 620 and 659, DSHA requires you to complete 8 hours of HUD-approved homebuyer counseling before closing.
• Step 3 — Reservation. Once you’re pre-approved, I reserve your Diamonds DPA with DSHA. This is the step that locks in your $10,000 — when funds are tight, getting your reservation in early matters.
• Step 4 — Find the home, go under contract. Your buyer’s agent helps you find the property. Once you’re under contract, your formal application gets submitted to DSHA underwriting along with the standard mortgage file.
• Step 5 — Closing. Delaware uses attorney-state closings. Your real estate attorney handles the settlement; both the first mortgage and the Diamonds second mortgage record against the property at the same time.

Total time from initial call to pre-approval letter is typically 24–48 hours. From pre-approval to closing is usually 30–45 days, depending on the property and the contract.

What Should I Do While Delaware Diamonds Is Out of Funds?

The fact that Diamonds is currently paused doesn’t mean you stop. It means you stage everything so the day DSHA reopens funding, your reservation is the first one in. Here’s the productive sequence — these are the same steps I walk every essential worker buyer through right now:

• Get a soft pre-approval done now. A soft credit pull and a documented pre-approval don’t expire — they refresh easily — and having the file already built means we submit your Diamonds reservation the moment DSHA’s portal reopens. Buyers without pre-approvals are still gathering paystubs while reserved buyers are already locked in.
• Confirm your essential worker eligibility. Some borderline cases (charter school staff, certain home daycare providers, some retail employers) need a closer look at the current DSHA-approved list. We sort that on the call so you’re not finding out at underwriting.
• Evaluate alternative DSHA DPAs in parallel. If you’re a first-time buyer, the DSHA First State (3%), Keys4You (4%), or Take5 (5%) programs may be funded right now and may give you more dollars on a larger loan than Diamonds’ flat $10,000. Don’t wait for Diamonds to reopen if a better-funded option already fits.
• Take the homebuyer counseling now if your score is 620–659. The 8-hour HUD-approved counseling requirement is the most common reason a Diamonds closing gets delayed. Take it now — it’s good for 12 months — and your file is fully cleared the moment funds return.
• Attend a free Delaware Homebuyer Seminar. The seminar covers DSHA programs, FHA/VA/USDA, closing costs, the 4% transfer tax, and what to expect from contract to close. It’s the same content I deliver to clients one-on-one, but you can watch it on your own timeline.
• Get on my Diamonds notification list. When DSHA’s reservations portal reopens, the first 24–48 hours are the busiest of the cycle. I notify pre-approved buyers on day one — call 302-703-0727 or schedule a 30-minute call.

Delaware Areas We Help with the Diamonds DPA Program

I help Delaware essential workers review DSHA Delaware Diamonds eligibility across all three Delaware counties. The most common areas I work in include:

• New Castle County: Newark, Wilmington, Bear, Middletown, New Castle, Hockessin, Pike Creek, Glasgow, Claymont, Smyrna
• Kent County: Dover, Camden, Smyrna, Magnolia, Felton, Harrington, Milford
• Sussex County: Lewes, Rehoboth Beach, Milford, Georgetown, Seaford, Millsboro, Bridgeville, Selbyville, Dagsboro, Laurel

The Diamonds program rules are the same statewide, but income limits and maximum sales price limits do vary by county. I’m based in Newark, Delaware, and I work with essential worker buyers across the entire state. Wherever you’re buying, the conversation starts the same way: a 30-minute eligibility review.

Want to Learn More? Attend a Free Delaware Homebuyer Seminar

I host free Delaware First Time Home Buyer Seminars every month in Newark, Wilmington, and Dover — and the 8-hour HUD-approved counseling requirement for Diamonds buyers below a 660 credit score can be satisfied through the seminar partner agencies. Watch a recent recording below or register for the next live seminar at DelawareHomeBuyerSeminar.com.

FAQ — Delaware Diamonds DPA Program

Last Updated: April 28, 2026

John Thomas, NMLS #38783 | Primary Residential Mortgage, Inc. | 248 E Chestnut Hill Rd, Newark, DE 19713 | 302-703-0727 | delawaremortgageloans.net | Licensed by the Delaware State Bank Commissioner | Equal Housing Lender

Copyright John R. Thomas, All Rights Reserved.