New Castle County Workforce Housing Program: Approved Lenders, Loan Options, and How to Qualify

If you are looking into the New Castle County Workforce Housing Program, you might have three main questions:

• What is Workforce Housing and how does it work?
• How do I qualify based on income and program rules?
• Which lenders and loan programs can be used for Workforce Housing?

This guide explains the program in simple language.  It covers available loans like FHA, VA, USDA, Conventional, and Non-QM and how Workforce Housing can be paired with a down payment assistance.

What Is the New Castle County Workforce Housing Program?

The Workforce Housing Program (WFH) is part of New Castle County’s Inclusionary Housing Program. It creates affordable homeownership opportunities by partnering with Home Builders to include a certain number of price-capped homes in the neighborhood with rules to keep those homes affordable over time.

New Castle County limits the sales price based on household income and the home comes with affordability rules that continue after you buy it for a certain period of time.  In exchange for purchasing the home below the market price, the home will have a required time period where the home can only be sold to an income qualified buyer.

Where are the Available Workforce Housing Homes to Purchase?

The Workforce Housing homes for sale are in new developments in which Home Builders have agreed to offer homes at below market prices to eligible home buyers in exchange for tax credits from New Castle County.  The County will determine what the income limit is per home based on the agreement signed with the Home Builder.   You can look up the currently available Workforce Housing Homes on New Castle County’s website at the link below:

SEARCH WORKFORCE HOUSING HOME IN NEW CASTLE COUNTY HERE

Who This Program Is Designed For

Workforce Housing is designed for working households who can qualify for a mortgage, but need an affordable sales price. Many buyers include:

• Delaware First-time homebuyers
• Teachers, nurses, public employees, and trades
• Dual-income households priced out of market-rate homes
• Buyers with steady income who need affordability built into the home price

Workforce Housing homes are ONLY owner-occupied and MUST be located in New Castle County, Delaware.

New Castle County Workforce Housing Income Limits

To qualify, you must meet household income limits based on projected Federal Adjusted Gross Income (not just hourly wage or salary). The County uses HUD median income limits based on the number of people in the household.  These income limits are updated each year when HUD updates their median household income ranges.  Each home will have an income limit set by New Castle County at either 75%, 80%, 90% or 120% of the HUD Area Median Income.

Workforce Housing Purchase Price Limits (Why Your Lender Matters)

New Castle County publishes quarterly maximum allowable sales prices. These limits depend on:

• Household size and income tier
• Prevailing interest rates
• Affordability calculations that include taxes, insurance, and reserves

This matters because your standard mortgage pre-approval amount may be higher than what the County allows for that Workforce Housing home. Your lender has to structure the loan to match the County’s affordability rules and provide the documents needed for County review.

Approved Loan Programs for Workforce Housing

Workforce Housing can be financed with common mortgage programs, as long as the final loan meets County affordability rules and gets County approval.

Loan Programs John Thomas Can Use for Workforce Housing

• FHA Loans (low down payment, flexible credit)
• VA Loans (0% down for eligible veterans)
• USDA Loans (0% down in eligible areas)
• Conventional Loans (often used at higher income tiers)
• Non-QM Loans (bank statement/self-employed options when eligible)

Important: New Castle County requires lenders to submit documents for review and approval before closing. Financing that is not approved can create a compliance issue for the buyer and the property.

Can Workforce Housing Be Combined With Down Payment Assistance?

Yes. Workforce Housing can often be paired with eligible Delaware and local down payment assistance (DPA), as long as:

• The combined financing stays within the County’s price and affordability limits
• The final loan structure is approved before settlement

For a full list of DPA programs, use this resource:

Delaware Down Payment Assistance Programs (Full List)

Step-by-Step: How to Qualify for Workforce Housing

1. Check income eligibility using the County’s current AMI limits for the home you are interested in purchasing.
2. Get mortgage pre-approved for mortgage loan with a Workforce Housing lender such as John Thomas
3. Determine with your lender if are eligible for any down payment assistance programs.
4. Complete the Inclusionary Housing application with New Castle County.
5. Gather required documents for each adult household member:
   • Most recent Federal tax return (two years if self-employed)
   • Most recent paystubs covering three (3) months
   • Most recent bank statements covering three (3) months (six months if self-employed)
   • Photo identification
6. Complete 8 hours of HUD-approved homebuyer education.
7. Lender will submit loan details for New Castle County approval.
8. Close once the County confirms compliance and your lender clears final underwriting.

Important Rules Buyers Must Understand

• Owner-occupancy is required. Buyers sign a declaration at settlement.
• Resale rules apply. Future sale price may be limited and future buyers may need to income-qualify.
• Annual monitoring can occur during the affordability period.
• Early resale may involve profit-sharing rules depending on the Buyer’s Agreement. with New Castle County.

Common Myths About Workforce Housing

Myth: Workforce Housing is only for low-income buyers.

Reality: Workforce Housing can allow incomes up to 120% of AMI, depending on the unit.

Myth: You can’t use standard mortgage programs.

Reality: Buyers may use FHA, VA, USDA, Conventional, and Non-QM loans if the final financing is compliant and approved.

Myth: Workforce Housing is a grant.

Reality: This is a price-restricted housing program, not free money. You still qualify for a mortgage and bring required funds to closing (which may include DPA).

Why Buyers Choose John Thomas as Their New Castle County Workforce Housing Lender

Workforce Housing is not a “normal” mortgage closing. The loan has to fit the County’s affordability rules, and the County needs specific documents before settlement.

John Thomas helps Workforce Housing buyers by:

• Structuring loans to match County affordability limits
• Using the right program: FHA, VA, USDA, Conventional, or Non-QM
• Layering down payment assistance the correct way
• Helping avoid last-minute County approval delays

Serving New Castle County Workforce Housing Buyers

John Thomas works with buyers throughout New Castle County, including:

• Newark
• Middletown
• Bear
• Hockessin
• Townsend
• New Castle

New Castle County Workforce Housing FAQs

Do I need a special lender or loan officer for Workforce Housing?

You should work with a lender who understands New Castle County’s Workforce Housing approval process. The County may require review of loan terms and documents before closing.

Can I use down payment assistance with Workforce Housing?

Yes. Workforce Housing can often be combined with Delaware and local down payment assistance, as long as the final financing stays within County affordability limits and is approved.

Is Workforce Housing only for first-time homebuyers?

No. But the home must typically be owner-occupied, and eligibility depends on income and program rules for that unit.

Are there resale restrictions on Workforce Housing homes?

Yes. Workforce Housing homes have affordability rules that can limit resale price and require future buyers to income-qualify.

What loan programs can I use for Workforce Housing?

Common options include FHA, VA, USDA, Conventional, and Non-QM loans, as long as the final loan meets County requirements and is approved.

How do I schedule a Workforce Housing consultation with John Thomas?

Call or text 302-703-0727, schedule an appointment online, or apply online using the links below.