DSHA Diamond in the Rough Program Delaware: FHA 203k + 5% Down Payment Assistance
I’m John Thomas, NMLS #38783, and I’ve been helping Delaware buyers use DSHA programs for over 20 years. The DSHA Diamond in the Rough program is one of the most underused opportunities in the state – it lets you buy a home that needs work and finance up to $75,000 in renovations into a single FHA 203k Limited mortgage, all while DSHA covers your down payment and closing costs with a 5% second mortgage. If you’ve been looking at fixer-uppers in Delaware and wondering how to pay for both the purchase and the repairs without draining your savings, this is the program I’m going to walk you through today. Call my team at 302-703-0727 or apply online to find out if you qualify.
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Table of Contents
What Is the DSHA Diamond in the Rough Program?
The DSHA Diamond in the Rough program is a Delaware State Housing Authority initiative that combines two powerful financing tools into one mortgage: the FHA 203k Limited renovation loan and 5% down payment and closing cost assistance. It was launched in 2024 to help Delaware buyers purchase homes that need minor repairs or cosmetic updates – homes that a traditional FHA loan would not approve without repairs being made first.
Here’s how the two pieces work together. The FHA 203k Limited loan lets you roll up to $75,000 in renovation costs directly into your purchase mortgage, so you close on one loan at one interest rate for a 30-year term. On top of that, DSHA provides a second mortgage equal to 5% of the final first mortgage amount to cover your down payment, closing costs, and prepaid items. That second mortgage is a deferred, 0%-interest silent second – no monthly payment, and you only repay it when you sell, refinance, transfer title, or stop using the home as your primary residence.
Diamond in the Rough is offered through the Delaware Mortgage Program at destatehousing.com – DSHA’s product family launched in April 2026. That April 2026 Delaware Mortgage Program rebrand was a single event: it retired the longtime “Kiss Your Landlord Goodbye” branding, renamed Home Again to Open Door, branded the existing 4% DPA as Keys4You and opened it to both Welcome Home and Open Door, and launched Take5 as a new 5% DPA option exclusive to Welcome Home. Diamond in the Rough itself has been available since 2024 – the April 2026 rebrand updated the broader program family around it but did not change Diamond’s structure or eligibility. The program is available statewide through DSHA-approved lenders like the John Thomas Team with AnnieMac Home Mortgage.
Key Features of the DSHA Diamond in the Rough FHA 203k Program
- FHA 203k Limited renovation loan only (not the Standard 203k)
- Up to $75,000 in financed renovations (per HUD Mortgagee Letter 2024-13, effective November 4, 2024)
- Must be paired with the DSHA Welcome Home FHA Loan (first-time buyer track)
- 5% down payment and closing cost assistance based on final first mortgage amount
- DPA is a deferred, 0%-interest second mortgage – no monthly payment
- Minimum 640 credit score for all borrowers (higher than the standard 620 minimum on other DSHA DPAs because of the 203k renovation overlay)
- Homebuyer education required if credit score is below 660
- Owner-occupied primary residence only, located in Delaware
- 1-4 unit site-built dwellings eligible (manufactured homes are NOT eligible for Diamond in the Rough – DSHA does not allow FHA 203(k) on manufactured homes)
- DSHA income limits and purchase price limits apply by county and household size
- 30-year fixed-rate mortgage; DSHA sets the interest rate daily
Who Qualifies for the DSHA Diamond in the Rough Program?
Diamond in the Rough is specifically paired with the Welcome Home first-time buyer track of the Delaware Mortgage Program. That means eligibility follows Welcome Home rules plus the FHA 203k Limited guidelines. Here’s who qualifies:
- First-time home buyers – you have not owned a home or been on a deed in the past 3 years
- Qualified veterans – the first-time buyer requirement is waived for honorably discharged veterans
- Buyers purchasing in DSHA targeted areas – the first-time buyer rule is also waived for homes located in qualified census tracts (which also have higher income and purchase price limits)
- Buyers with limited cash for both renovation costs and down payment/closing costs
- Anyone purchasing a fixer-upper, outdated home, or property with cosmetic or minor functional issues that block standard FHA financing
- Buyers who can meet DSHA income limits (counted as borrower-on-Note income only as of April 15, 2025) and county purchase price limits
If you’re a repeat buyer who doesn’t qualify as first-time, you won’t be eligible for Diamond in the Rough itself – but you may still be able to use a standalone FHA 203k Rehab Loan without DSHA assistance, or explore the DSHA Open Door program (renamed from Home Again in DSHA’s April 2026 Delaware Mortgage Program rebrand) with a different DPA pairing – Keys4You at 4% or First State at 3%.
What Renovations Are Allowed Under Diamond in the Rough?
The FHA 203k Limited program is designed for non-structural repairs and cosmetic upgrades that enhance livability, safety, or appearance. It is not meant for major structural overhauls or additions – those require the Standard 203k loan instead.
| Eligible Renovations | NOT Eligible |
|---|---|
| Roof replacement or repairs | Structural changes (load-bearing walls, foundations) |
| HVAC, heating, and air conditioning systems | Room additions or expansions |
| Kitchen remodeling (non-structural) | Converting 1-family to 2+ family units |
| Bathroom updates and remodeling | Luxury items (hot tubs, saunas, outdoor kitchens) |
| Flooring and carpeting | New swimming pools (repairs to existing pool are OK) |
| Appliance replacement and upgrades | Work requiring engineering or architectural drawings |
| Interior and exterior painting | Work that displaces the borrower over 30 days |
| Window and door replacements | Landscaping (beyond minor site work) |
| Energy-efficient upgrades (insulation, windows) | Accessory dwelling unit (ADU) construction |
| Accessibility upgrades (ramps, grab bars) | Moving load-bearing partitions |
| Gutter, downspout, and minor exterior repairs | Any project exceeding $75,000 total |
| Existing pool repairs | Self-performed labor (DIY not permitted) |
All work must be completed by a licensed contractor approved through the lender’s process, and a minimum of $5,000 in eligible repairs is required to use the FHA 203k Limited program. If your project is bigger than $75,000 or involves structural work, you’ll need to move to the FHA 203k Standard – but Diamond in the Rough does not pair with the Standard version.
How Much Down Payment Assistance Does Diamond in the Rough Provide?
The DSHA Diamond in the Rough DPA equals 5% of the final first mortgage loan amount. It is structured as a second mortgage recorded against the property, with these terms:
- Interest rate: 0%
- Monthly payment: None (silent second)
- Repayment trigger: Sale, refinance, transfer of title, or when the home is no longer your primary residence
- Use of funds: FHA’s 3.5% minimum down payment, closing costs, and prepaid taxes and insurance
Here’s what the math looks like on a typical Diamond in the Rough transaction. Say you find a home for $250,000 that needs $40,000 in repairs. Your FHA 203k Limited first mortgage would be based on the combined total ($290,000) plus FHA upfront mortgage insurance. If your final first mortgage principal comes out to around $292,000, your DSHA Diamond in the Rough DPA would be approximately $14,600 (5% of $292,000) – enough to cover your 3.5% down payment ($10,150) plus a meaningful portion of closing costs. That’s cash that stays in your pocket for furniture, moving expenses, or an emergency fund.
What Does the 5% Cost You in Rate?
DSHA funds its assistance through rate pricing, so every step up the assistance menu costs you rate on the first mortgage. Diamond in the Rough sits at the 5% tier, which is the top of that menu. Here is where it lands on the DSHA sheet dated September 14, 2026. These are program rates for comparison, not a quote, not an APR and not a rate lock; your APR will be higher, and DSHA reprices on its own schedule, so call 302-703-0727 for the current sheet before you decide.
| Welcome Home option | Assistance | Government rate (FHA/VA/USDA) |
|---|---|---|
| Smart Start | None | 5.625% |
| First State | 3% | 5.875% |
| Keys4You | 4% | 6.125% |
| Take5 | 5% | 6.625% |
| Diamond in the Rough | 5% | 6.625% |
Diamond in the Rough carries a full percentage point over Smart Start, the widest step on the DSHA menu, because it sits at the largest assistance tier. On the $292,000 loan used earlier, that full point adds roughly $189 a month in principal and interest, while the 5% hands you about $14,600 at closing — a break-even of roughly 6.4 years. Most Delaware buyers sell or refinance in 7 to 12 years, so that break-even sits inside the range rather than safely past it.
What this means for you. The rate is the honest cost of Diamond in the Rough, and it is worth naming rather than glossing. But the comparison that matters here is not Diamond against Smart Start — it is Diamond against buying the same house with no renovation financing at all. A distressed property you cannot get financed, or repairs you would otherwise put on a credit card at 20%+, is the real alternative for most buyers who land on this page. Against that, a point on the first mortgage is usually the cheaper path. If you do not actually need the renovation escrow, though, price Keys4You at 4% first: on the same loan it costs about $93 a month instead of $189. These are illustrations on the example loan amount, not a quote.
How Does Diamond in the Rough Compare to Other Delaware Renovation Loans?
Diamond in the Rough isn’t the only renovation loan option in Delaware. Here’s how it compares to the other major renovation mortgages I work with:
| Feature | DSHA Diamond in the Rough | Standalone FHA 203k Limited | VA Renovation | HomeStyle (Conventional) |
|---|---|---|---|---|
| Max Renovation | $75,000 | $75,000 | Up to as-completed value | Up to 75% as-completed value |
| Down Payment Required | Covered by 5% DSHA DPA | 3.5% out of pocket | $0 down (VA eligible) | 5% out of pocket |
| Closing Costs | Covered by 5% DSHA DPA | Out of pocket or seller-paid | Out of pocket or seller-paid | Out of pocket or seller-paid |
| Min Credit Score | 640 | 620 | 620 | 680+ |
| First-Time Buyer Only? | Yes (Welcome Home) | No | No | No |
| Income Limits | Yes (DSHA limits by county) | None | None | None (varies by LTV) |
| Structural Repairs? | No | No | Yes | Yes |
| Mortgage Insurance | FHA MIP (monthly + upfront) | FHA MIP (monthly + upfront) | None (VA funding fee only) | PMI until 20% equity |
The bottom line: Diamond in the Rough wins on out-of-pocket cash. No other Delaware renovation loan combines the purchase, up to $75,000 in repairs, and 5% down payment/closing cost assistance in a single package. If you’re a first-time buyer and you qualify on income and credit, this is almost always the most affordable way to buy and fix up a Delaware home. For veterans, I’d compare it closely against the VA Renovation Loan – VA gives you $0 down and no MI, but it doesn’t include 5% DPA. For repeat buyers or higher-income households, the HomeStyle Renovation or standalone FHA 203k may be the better fit. And if you’re a first-time buyer who doesn’t need the renovation overlay, the Take5 5% DPA is the move-in-ready equivalent of Diamond – same 5% assistance under Welcome Home but without the FHA 203k requirement, and at the standard 620 minimum credit score.
What Are the DSHA Income Limits and Purchase Price Limits in 2026?
Because Diamond in the Rough runs through the Welcome Home first-time buyer track, it follows DSHA’s Welcome Home income and purchase price limits. These limits are set by DSHA and updated periodically – the figures below reflect current published limits, but you should always verify with your lender before writing an offer.
Household Income Limits (Welcome Home, Non-Targeted Areas, effective for reservations on or after June 8, 2026):
- New Castle County: $122,700 (1-2 person household) / $141,105 (3+ person household)
- Kent & Sussex Counties: $111,400 (1-2 person household) / $128,110 (3+ person household)
Targeted-area limits are higher again — $147,240 (1-2 person) / $171,780 (3+) in New Castle County and $133,680 / $155,960 in Kent and Sussex, with purchase price limits of $805,916 and $692,211 — and the first-time buyer requirement is relaxed for targeted-area purchases. Send me the address and I will confirm the census tract before you write an offer.
DSHA changed how income is counted for loans reserved on or after April 15, 2025. Household income is no longer considered. Here’s how income is now counted for Diamond in the Rough (which runs through Welcome Home):
Welcome Home (Diamond in the Rough): Only income from borrowers on the Note and/or Mortgage is counted. All income sources for those borrowers still count. Income limits and household count still apply based on household size.
Example: If a husband and wife live together but only the wife is on the Note and Mortgage, only the wife’s income is counted for eligibility — the husband’s income is excluded even though he lives in the home.
This is a major change from the old rule, which required counting income from every adult in the household regardless of who was on the loan. For Diamond in the Rough buyers, this makes qualifying significantly easier when one spouse has a higher income than the income limit allows combined.
Always confirm current figures by calling 302-703-0727 or checking the DSHA website at destatehousing.com before writing an offer – DSHA adjusts limits periodically.
Purchase price limits also vary by county and whether the property is located in a targeted area. The non-targeted purchase price limits, effective for reservations on or after June 8, 2026, are $659,385 in New Castle County and $566,354 in Kent & Sussex Counties, rising to $805,916 and $692,211 in targeted areas. Because you’re financing renovations on top of the purchase price, what matters most is that your total acquisition plus rehabilitation does not exceed the DSHA county purchase price cap for your property type.
What’s the Step-by-Step Process to Close a Diamond in the Rough Loan?
A Diamond in the Rough loan involves more moving pieces than a standard purchase mortgage. Expect 45-75 days from application to closing, depending on contractor bids and appraisal scheduling. Here’s the typical path I walk my buyers through:
- Pre-approval with a DSHA-approved lender. Apply with a participating lender (like the John Thomas Team). We’ll verify income, credit, household size, and pull your middle FICO score. Minimum 640 credit score for all borrowers.
- Complete homebuyer education. If your credit score is below 660, you’re required to complete 8 hours of HUD-approved homebuyer counseling before closing. I recommend getting this done early – it’s often a bottleneck.
- Find a home and get it under contract. Work with a Delaware real estate agent who understands 203k financing. Build the renovation contingency into the contract.
- Walk the property with a licensed contractor. Identify all needed repairs and improvements. Get itemized written bids. FHA 203k Limited doesn’t require a HUD Consultant, but many lenders recommend one for projects over $35,000.
- Order the appraisal. The appraiser values the home two ways – “as-is” and “after-improved” based on your renovation scope. The loan amount is based on the lower of purchase price plus rehab or after-improved value.
- Underwriting and DSHA reservation. Your lender submits the file to underwriting and reserves the DSHA funds simultaneously. DSHA issues a rate-lock and confirms DPA eligibility.
- Close the loan. You sign the first mortgage, the second mortgage (DPA), and establish the rehabilitation escrow account with the renovation funds held in trust. You take ownership of the home on closing day.
- Begin renovations. Your contractor starts work. FHA 203k Limited allows up to 9 months to complete repairs (extended from 6 months per the November 2024 HUD update).
- Draw releases. Funds are released from the rehab escrow in stages as work is completed and inspected. FHA 203k Limited allows draws tied to work progress.
- Final inspection and completion. Once all work is done, a final inspection confirms completion, remaining escrow funds are released (or applied to principal), and you move in and enjoy your renovated home.
What Are the Benefits of Using Diamond in the Rough in Delaware?
- Buy and renovate with one mortgage – one closing, one rate, one monthly payment, no separate construction loan
- Access up to $75,000 for upgrades – post-November 2024 HUD update raised the cap from $35,000
- 5% DPA covers down payment and closing costs – most first-time buyers close with very little cash out of pocket
- Build instant equity – the renovations increase the home’s value above the total loan amount
- Expand your home search – you can consider properties that standard FHA financing would reject for condition issues
- Customize your home from day one – paint, floors, kitchen, and bathrooms tailored to your preferences before you move in
- Silent second DPA – no monthly payment and 0% interest on the DSHA assistance
- Competitive DSHA interest rates – DSHA sets rates at or below market through the Delaware Mortgage Program
How Do I Apply for the DSHA Diamond in the Rough Program?
You can only apply for Diamond in the Rough through a DSHA-approved lender – DSHA doesn’t lend directly. The John Thomas Team with AnnieMac Home Mortgage is a longtime DSHA-approved lender and we specialize in pairing Diamond in the Rough with FHA 203k Limited renovation scopes. Here’s how to start:
- Call the John Thomas Team at 302-703-0727 for a no-obligation conversation about your renovation project and eligibility
- Apply online using our secure mortgage application
- Schedule a 30-minute appointment at a time that works for you
- Check current DSHA interest rates on DSHA’s website – the Delaware Mortgage Program at destatehousing.com
Related Delaware DSHA and Renovation Loan Guides
- DSHA Loan Programs in Delaware (2026 Guide) – the main DSHA hub covering Welcome Home, Open Door, and all DPA options.
- DSHA Welcome Home loan for first-time buyers – the first-mortgage track Diamond in the Rough pairs with.
- DSHA Open Door loan for repeat home buyers (renamed from Home Again in DSHA’s April 2026 Delaware Mortgage Program rebrand) – for buyers who don’t qualify as first-time.
- DSHA Take5 5% down payment assistance – the move-in-ready equivalent of Diamond (same 5% DPA, no FHA 203k requirement, 620 minimum credit).
- DSHA Keys4You 4% down payment assistance – the 4% DPA available with both Welcome Home and Open Door.
- DSHA First State Home Loan 3% DPA – the smallest DSHA DPA, available with both Welcome Home and Open Door.
- FHA 203k Rehab Loans (standalone) – for repeat buyers or higher-income households who can’t use Diamond.
- VA Renovation Loan – the veterans’ alternative for buying and renovating with $0 down.
- Fannie Mae HomeStyle Renovation Loan – the conventional alternative for higher credit scores and structural projects.
- Delaware First Time Home Buyer Programs and Grants 2026 – the complete first-time buyer pillar page.
- Delaware Down Payment Assistance Programs (2026 complete guide) – all Delaware DPA options beyond DSHA.
- Delaware Mortgage Credit Certificate (MCC) – the federal tax credit for Delaware first-time buyers that ended August 15, 2025. Many national sites and accountants still reference it as active. Our MCC page explains how the program worked and when it ended.
About the Author: John R. Thomas
Branch Manager & Division Vice President of Sales, John Thomas Team with AnnieMac Home Mortgage
John Thomas is Branch Manager and Division Vice President of Sales with the John Thomas Team with AnnieMac Home Mortgage in Newark, Delaware, and a DSHA-approved lender with over 20 years of experience structuring renovation loans for Delaware buyers. He has helped hundreds of first-time buyers combine DSHA down payment assistance with FHA 203k Limited financing — including the Diamond in the Rough program since its 2024 launch — to buy and renovate homes that traditional mortgages would not finance.
John holds a Bachelor of Science in Physics Education from the University of Delaware and a Master of Science in Curriculum and Instruction from Delaware State University, and is a Certified Mortgage Planner (CMP). Licensed in 17 states (AL, DC, DE, FL, GA, IN, KS, MD, MN, MO, NC, NJ, OH, PA, SC, TN, VA). NMLS #38783. The license list is a credential, not a service-area claim; day-to-day origination is Delaware and Maryland.
John is the author of Your Guide to Buying Your First Home in Delaware (ISBN 0557349826) and has hosted more than 3,000 Delaware buyers through his monthly homebuyer seminars. He specializes in helping buyers navigate DSHA Welcome Home, Open Door, and the full suite of renovation programs available in Delaware and Maryland.
John R. Thomas, NMLS #38783 | 248 E Chestnut Hill Rd, Newark, DE 19713 | 302-703-0727
team@johnthomasteam.com | Schedule Appointment | See John Thomas Team on Google
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Diamond in the Rough FHA 203k Program: Frequently Asked Questions
What is the DSHA Diamond in the Rough program?
Diamond in the Rough is a Delaware State Housing Authority renovation mortgage that combines an FHA 203k Limited loan (up to $75,000 in financed repairs) with 5% down payment and closing cost assistance from DSHA. It is offered under the Welcome Home first-time buyer track of the Delaware Mortgage Program (DSHA’s current product family at destatehousing.com, launched in DSHA’s April 2026 rebrand that retired the longtime Kiss Your Landlord Goodbye branding). One loan covers both the purchase price and the renovation costs, with the DPA second mortgage covering most or all of your cash-to-close.
How much renovation money can I get with Diamond in the Rough?
You can finance up to $75,000 in eligible repairs and improvements through the FHA 203k Limited program. This limit was raised from $35,000 to $75,000 by HUD Mortgagee Letter 2024-13, effective for FHA case numbers assigned on or after November 4, 2024. A minimum of $5,000 in eligible repairs is required to use the 203k Limited loan.
How does the 5% down payment assistance actually work?
DSHA provides 5% of the final first mortgage principal as a second mortgage recorded against your property. It has a 0% interest rate, requires no monthly payment, and is repaid only when you sell, refinance, transfer title, or stop using the home as your primary residence. The 5% can be applied toward your FHA 3.5% down payment, closing costs, and prepaid taxes and insurance.
What credit score do I need for Diamond in the Rough?
All borrowers must have a minimum 640 credit score per DSHA Addendum D (Diamond in the Rough program guidelines). This is higher than the standard 620 minimum that applies to other DSHA DPAs (First State, Keys4You, Take5) because of the FHA 203k renovation overlay. If your credit score is below 660, you must complete 8 hours of HUD-approved homebuyer counseling before closing. The 640 score applies to the lowest middle score among all borrowers on the loan.
Do I have to be a first-time buyer to qualify?
Yes – Diamond in the Rough pairs only with the DSHA Welcome Home loan, which is for first-time buyers. You’re considered a first-time buyer if you have not owned a home or been on a deed in the past 3 years. The first-time buyer rule is waived for qualified veterans and for buyers purchasing in DSHA-designated targeted areas. Repeat buyers who don’t qualify may be able to use a standalone FHA 203k Limited loan or the DSHA Open Door program (renamed from Home Again in DSHA’s April 2026 Delaware Mortgage Program rebrand) with a different DPA – Keys4You at 4% or First State at 3%.
What renovations are allowed under the FHA 203k Limited?
Non-structural improvements including roof repairs, HVAC replacement, flooring, kitchen and bathroom updates, painting, windows, doors, appliances, energy-efficient upgrades, accessibility modifications, and existing pool repairs. Not allowed: structural changes, room additions, new pools, luxury items, work requiring engineering drawings, or any project requiring the borrower to be displaced for more than 30 days. All work must be done by a licensed contractor – DIY labor is not permitted.
What are the DSHA income limits for Diamond in the Rough in Delaware, and how is income counted?
Because Diamond in the Rough runs through Welcome Home, it follows Welcome Home income limits – which vary by county and household size. In non-targeted areas, effective for reservations on or after June 8, 2026, New Castle County limits are $122,700 (1-2 person) and $141,105 (3+ person); Kent and Sussex Counties are $111,400 (1-2 person) and $128,110 (3+ person). Targeted-area limits are higher again, at $147,240 / $171,780 in New Castle County and $133,680 / $155,960 in Kent and Sussex. Effective for loans reserved on or after April 15, 2025, DSHA no longer counts household income – only the income of borrowers on the Note and/or Mortgage is counted. For example, if a husband and wife live together but only the wife is on the loan, only the wife’s income counts toward the limit. Household count still sets which income tier applies. Always confirm current limits with your lender before writing an offer.
How long does it take to close a Diamond in the Rough loan?
Expect 45-75 days from application to closing. Standard purchase mortgages close in 30-45 days, but 203k renovation loans require contractor bids, scope of work documentation, and an after-improved appraisal – all of which add 2-4 weeks. Post-closing, FHA 203k Limited allows up to 9 months to complete all renovations (extended from 6 months per the November 2024 HUD update).
When do I have to repay the DSHA 5% down payment assistance?
The DPA second mortgage is due when one of the following happens: you sell the home, you refinance the first mortgage, you transfer title to someone else, or the property is no longer your primary residence. If you live in the home and keep the original FHA 203k first mortgage, you never make a payment on the DPA – it simply sits as a silent second until a trigger event.
Can I use Diamond in the Rough for a real estate investor or second home?
No. The program is restricted to owner-occupied primary residences in Delaware. You must occupy the home within 60 days of closing and continue to occupy it as your primary residence. FHA and DSHA both require primary-residence occupancy, and any attempt to use 203k financing for investment property or a second home would violate your mortgage terms.
How is Diamond in the Rough different from Take5?
Both Diamond in the Rough and Take5 provide 5% DPA under DSHA Welcome Home, but they’re not interchangeable. Take5 is for buyers purchasing a move-in ready home – no renovation work required, and the minimum credit score is 620. Diamond in the Rough is for buyers purchasing a home that needs repairs, requires the FHA 203(k) Limited renovation loan as the first mortgage, and carries a higher 640 minimum credit score because of the renovation overlay. If your home needs repairs above standard FHA minimum property requirements and you have at least a 640 credit score, Diamond is the better fit. Otherwise, Take5 is simpler.
How do I apply for the DSHA Diamond in the Rough program?
You must apply through a DSHA-approved lender – DSHA does not lend directly. Start by calling the John Thomas Team with AnnieMac Home Mortgage at 302-703-0727, applying online, or scheduling an appointment. We’ll pre-approve you for Welcome Home + Diamond in the Rough, help you structure the renovation scope with your contractor, and reserve DSHA funds at rate-lock.
Turn a Delaware Fixer-Upper Into Your Dream Home
The DSHA Diamond in the Rough program is one of the best-kept secrets in Delaware first-time buyer financing. If you’re ready to buy and renovate with one loan — and close with minimal cash out of pocket — let’s talk.
DSHA-approved lender. 20+ years of Delaware mortgage experience. 5-star Google reviews.
Last Updated: September 2026 · John Thomas Team with AnnieMac Home Mortgage · Mortgage content reviewed by John R. Thomas, NMLS #38783.
DSHA income and purchase price limits effective for reservations on or after June 8, 2026, verified against the Delaware State Housing Authority on September 13, 2026. FHA 203(k) Limited $75,000 rehabilitation cap per HUD Mortgagee Letter 2024-13, effective for FHA case numbers assigned on or after November 4, 2024, confirmed current September 13, 2026. Program rates from the DSHA rate sheet dated September 14, 2026 — not a quote, not an APR and not a rate lock; call 302-703-0727 for the current sheet.
John R. Thomas, NMLS #38783 | AnnieMac Home Mortgage NMLS #338923 | 248 E Chestnut Hill Rd, Newark, DE 19713 | 302-703-0727 | delawaremortgageloans.net
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