DSHA Take5 Home Loan Delaware for First-Time Home Buyers

DSHA Take5 at a Glance

Assistance amount	5% of your first mortgage loan amount
Interest rate	0% (zero interest for the full term)
Monthly payment	None (deferred second mortgage)
Repayment due	Sale, refinance, transfer of title, or when the home is no longer your primary residence
First mortgage required	DSHA Welcome Home (FHA, VA, USDA, or Conventional)
Buyer type	First-time home buyer (veterans and targeted-area buyers exempt)
Minimum credit score	620 (8-hour HUD counseling required under 660)
Income limit (Welcome Home, 1-2 person, non-targeted)	$122,700 NCC / $111,400 Kent & Sussex
Property location	Delaware primary residence only
Program launched	April 2026 Delaware Mortgage Program rebrand (new 5% DPA option introduced under DSHA Welcome Home)

I’m John Thomas, NMLS #38783, Branch Manager and Division Vice President of Sales with the John Thomas Team with AnnieMac Home Mortgage in Newark, Delaware. I’ve been originating Delaware mortgages for more than 20 years and have helped over 3,000 buyers close on homes across New Castle, Kent, and Sussex counties. My team is a DSHA-approved lender for every DSHA program – call 302-703-0727, schedule a free 30-minute appointment, or apply online.

What Is the DSHA Take5 Home Loan?

The DSHA Take5 Home Loan is a down payment and closing cost assistance program offered by the Delaware State Housing Authority. It’s structured as a zero-interest second mortgage – commonly called a “silent second” – equal to 5% of your first mortgage loan amount. Take5 was launched in April 2026 as part of DSHA’s new Delaware Mortgage Program rebrand – a single rebrand event that retired the longtime “Kiss Your Landlord Goodbye” campaign, consolidated all program information at destatehousing.com, renamed Home Again to Open Door, branded the existing 4% DPA as Keys4You and opened it to both Welcome Home and Open Door, and introduced Take5 as a new 5% DPA option exclusive to Welcome Home. (DSHA had reintroduced the 4% DPA in 2025 with no official product name and made it available only with Home Again at that point – the April 2026 rebrand is what actually consolidated everything into the current Smart Start, First State, Keys4You, Take5, and Diamond in the Rough lineup.) Per DSHA Director Matthew Heckles’ announcement: “The launch of the Delaware Mortgage Program replaces the longtime homeownership campaign and website, ‘Kiss Your Landlord Goodbye.’ All single-family mortgage lending information will now live under the DSHA brand and website, destatehousing.com.”

Here’s the short version of how this Delaware down payment assistance program works: you qualify for a DSHA Welcome Home first mortgage. DSHA then gives you a second mortgage equal to 5% of that first loan amount, and you use those funds toward your down payment, closing costs, or prepaid items like homeowner’s insurance and property taxes. You make no monthly payments on the Take5 second mortgage, and it charges 0% interest for the entire time you have it. You only pay the money back if one of four things happens: you sell the home, you refinance your first mortgage, you transfer title to someone else, or the property stops being your primary residence.

Take5 is the largest non-renovation DPA available under DSHA’s Welcome Home program. The 5% Diamond in the Rough matches the percentage but requires an FHA 203(k) Limited renovation loan and a higher 640 minimum credit score, so for buyers purchasing a move-in ready home with a standard 620 score, Take5 is the maximum DPA. If you want the full overview of every DSHA program, see my DSHA Loan Programs in Delaware guide.

How Much Down Payment Assistance Does Take5 Provide?

The Take5 DPA provides 5% of your first mortgage loan amount. Because the assistance is calculated off the loan size – not the purchase price – the exact dollar figure moves with your loan. The table below shows what Take5 looks like at common Delaware price points using DSHA Welcome Home’s Take5 pricing (6.625% government / 7.000% conventional on the September 14, 2026 DSHA rate sheet – not a quote, not an APR, not a rate lock; call 302-703-0727 for today’s sheet).

Purchase Price	First Mortgage Loan Amount (approx.)	Take5 DPA Grant (5%)	What It Covers
$250,000	$245,625 (FHA 3.5% down)	$12,281	Full FHA down payment + most closing costs
$300,000	$294,750 (FHA 3.5% down)	$14,737	Full FHA down payment + most closing costs
$350,000	$343,875 (FHA 3.5% down)	$17,194	Full FHA down payment + all typical closing costs
$400,000	$393,000 (FHA 3.5% down)	$19,650	Full FHA down payment + all typical closing costs + cushion
$450,000	$442,125 (FHA 3.5% down)	$22,106	Full FHA down payment + all typical closing costs + cushion

For context, Delaware’s median home sale price was $352,400 in February 2026, which would give a Take5-qualified buyer roughly $17,000 in down payment and closing cost assistance. That number matters because the typical FHA first-time buyer needs roughly $12,250 for the 3.5% down payment plus another $10,000-$14,000 for closing costs and prepaids on a home at that price. Take5 covers almost all of it.

Who Qualifies for the Take5 Home Loan in Delaware?

Take5 sits inside the DSHA Welcome Home family, so it inherits all of the Welcome Home eligibility rules plus a couple of Take5-specific ones. Here’s the full checklist:

• First-time home buyer. You cannot have owned a primary residence in the past 3 years. Exception: qualified veterans and buyers purchasing in DSHA-designated targeted areas are exempt from the first-time buyer requirement.
• Primary residence in Delaware. The home must be located in Delaware (New Castle, Kent, or Sussex County) and must be your primary residence. No investment properties, no second homes.
• Minimum 620 credit score for all borrowers on the loan. Borrowers with scores under 660 must complete 8 hours of HUD-approved home buyer counseling.
• Must use DSHA Welcome Home as your first mortgage. Take5 cannot be paired with DSHA Open Door, Smart Start alone, or any non-DSHA first mortgage.
• Income under the Welcome Home limits for your county (see below). As of April 15, 2025, DSHA counts only the income of borrowers on the Note and/or Mortgage – not all adult household members. Household count still determines which income limit tier applies.
• Must qualify for a DSHA Conventional, FHA, VA, or USDA first mortgage. Take5 works with all four loan types.
• Must work with a DSHA-approved lender. Not every Delaware mortgage company is on the approved list. My team at the John Thomas Team with AnnieMac Home Mortgage is DSHA-approved – call 302-703-0727 to get started.

DSHA Welcome Home Income Limits (2026)

DSHA caps household income for Welcome Home based on the county the home is in and the number of people in your household. Here are the current 2026 limits in non-targeted areas across both household-size tiers:

County	1-2 Person Household	3+ Person Household
New Castle County	$122,700	$141,105
Kent County	$111,400	$128,110
Sussex County	$111,400	$128,110

Above Welcome Home Limits? Open Door + Keys4You Is the Path

If your household income runs above the Welcome Home limits, you can’t use Take5 – but you may still qualify for DSHA Open Door (renamed from Home Again in DSHA’s April 2026 Delaware Mortgage Program rebrand), which has higher income limits and pairs with Keys4You (4%) or First State (3%) DPA instead. Open Door’s 2026 income limits in non-targeted areas:

County	1-2 Person Household	3+ Person Household
New Castle County	$147,240	$184,050
Kent County	$133,680	$167,100
Sussex County	$133,680	$167,100

Who Take5 Is Best For – and Who Should Look Elsewhere

Take5 is a specific tool for a specific kind of buyer. Before you spend time on the application, here’s a straight answer on whether it’s likely to be the right fit:

Take5 is best for you if:

• You’re a Delaware first-time home buyer (or a qualified veteran)
• Your household income is under the Welcome Home limit for your county
• You have limited cash for down payment and closing costs
• You’re buying a move-in ready home (no significant repairs needed)
• Your credit score is 620 or higher
• You plan to live in the home for several years (so the silent second doesn’t come due early)

Take5 may not be the right fit if:

• Your income is above Welcome Home limits. You’ll use Open Door with Keys4You (4%) or First State (3%) instead. Take5 is Welcome Home only.
• You’re buying a fixer-upper. Diamond in the Rough offers the same 5% DPA tied to the FHA 203(k) Limited renovation loan and is the better pairing for homes needing repairs – though it requires a higher 640 minimum credit score because of the renovation overlay.
• You’re not a first-time buyer and not a veteran. You’ll typically use Open Door + Keys4You or First State instead.
• You plan to refinance within 2-3 years. Refinancing triggers Take5 repayment. If you expect rates to drop and you want to refi early, build that into your planning.
• You may not stay in the home as a primary residence. Renting it out or turning it into a second home triggers repayment of the full Take5 balance.

How Does Take5 Compare to Keys4You, First State, and Diamond in the Rough?

DSHA’s April 2026 Delaware Mortgage Program rebrand reorganized the down payment assistance options into a clear ladder: 3% (First State), 4% (Keys4You), and 5% (Take5 and Diamond in the Rough). Each has different rules about which first mortgage it pairs with, which buyers are eligible, and what credit minimums apply. Here’s the side-by-side:

Program	DPA Amount	First Mortgage Pairing	Min Credit	Renovation Required?
Take5	5%	Welcome Home only	620	No
Diamond in the Rough	5%	Welcome Home only (with FHA 203k Limited)	640	Yes – FHA 203(k) Limited
Keys4You	4%	Welcome Home or Open Door	620	No
First State	3%	Welcome Home or Open Door	620	No

The practical takeaway is simple. If you qualify for Welcome Home and you’re buying a move-in ready home, Take5 is the biggest DPA grant you can get. If the home needs repairs and you have a 640+ credit score, Diamond in the Rough matches the 5% amount but adds the FHA 203(k) Limited renovation loan – which means a licensed contractor and a repair escrow. If your income is too high for Welcome Home, you’ll use Open Door with Keys4You or First State instead – Take5 is not available on the Open Door side.

For a complete explanation of every DSHA program, see my DSHA Loan Programs in Delaware (2026 Guide) and the specific pages for the First State Home Loan DPA, Keys4You 4% DPA, and Diamond in the Rough FHA 203(k) with 5% DPA.

What Does the 5% Actually Cost You in Rate?

Take5 gives you the most assistance of any DSHA program, and it also costs the most in rate. That is not a catch, it is how the program is funded: DSHA prices the assistance into the first mortgage, so each step up the menu costs you rate. Here is the sheet dated September 14, 2026. These are DSHA 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	Conventional rate
Smart Start	None	5.625%	6.125%
First State	3%	5.875%	6.375%
Keys4You	4%	6.125%	6.500%
Take5	5%	6.625%	7.000%

Take5 sits a full percentage point above Smart Start on a government loan, and 0.875 above it on conventional. That is the widest gap on the DSHA menu, which makes sense: it is the largest assistance tier. Run it on the $352,400 loan used in the example above. The full-point step adds roughly $228 a month in principal and interest against Smart Start, while Take5 hands you about $17,000 at closing. That is a break-even of a little over 6 years on government financing and about 7 years on conventional.

What this means for you. Take5 is the DSHA tier where the rate genuinely bites, because a 6-to-7 year break-even sits inside the period most Delaware buyers actually hold a home rather than safely past it. That does not make it the wrong choice – if 5% is what gets you to closing, a break-even you may never reach is not a cost you ever pay, and no amount of rate savings helps a buyer who cannot close. But if you can cover the down payment with 4% instead of 5%, compare Take5 against Keys4You before you commit: the 4% tier costs about $113 a month on the same loan instead of $228, and the extra 1% of assistance is rarely worth doubling the rate cost. These are illustrations on the example loan amount, not a quote. Bring me your actual numbers and we will run the tiers side by side.

Which Loan Types Can I Use With Take5?

Take5 pairs with any of the four DSHA Welcome Home first mortgage options: FHA, VA, USDA, and Conventional. Each has different down payment requirements, credit score minimums, and borrower benefits. Your mortgage pre-approval will tell you which one fits your situation best.

• DSHA Welcome Home FHA – 3.5% down payment, minimum 620 credit score, most flexible debt-to-income ratios. This is the most common Take5 pairing for first-time buyers. Learn more on my Delaware FHA Loans page.
• DSHA Welcome Home VA – 0% down payment for eligible veterans, active duty service members, and qualifying spouses. When combined with Take5, eligible veterans can close with the seller also paying closing costs and potentially have money left over. See my Delaware VA Loans page.
• DSHA Welcome Home USDA – 0% down payment for homes in USDA-eligible rural areas (much of Kent and Sussex County qualifies). Take5 can be used for closing costs and prepaids. See my Delaware USDA Loans page.
• DSHA Welcome Home Conventional – 3% down payment options through Fannie Mae HomeReady or Freddie Mac Home Possible for qualifying income-eligible buyers. See my Delaware Conventional Loans page.

How Do I Apply for the Take5 Home Loan?

DSHA doesn’t lend directly – you apply through a DSHA-approved lender. Our team is an approved DSHA lender and has originated Welcome Home, Open Door, and DPA combinations for years. Here’s the process from first call to keys in hand:

1. Initial consultation. Call 302-703-0727 or schedule a free 30-minute appointment. We’ll review your income, credit, savings, and goals to confirm Take5 is the right fit.
2. Pre-approval. Complete a secure online application. We pull credit with a soft inquiry first, verify income with pay stubs and tax returns, and issue a full DSHA Welcome Home + Take5 pre-approval letter.
3. HUD-approved home buyer counseling. If your credit score is under 660, you’ll complete 8 hours of counseling with a HUD-approved agency. This is a Welcome Home requirement, not a Take5-specific one.
4. Shop for a home. Work with a Delaware real estate agent to find a primary residence under the DSHA purchase price limit for your county. Your pre-approval confirms the maximum price you can offer.
5. Contract and underwriting. Once you’re under contract, DSHA reviews the file alongside my team. Both the first mortgage (Welcome Home) and the second mortgage (Take5) are underwritten together.
6. Closing. You sign the Welcome Home first mortgage, the Take5 second mortgage Note and lien, and the standard Delaware settlement documents. Take5 funds are applied directly at closing toward your down payment, closing costs, and prepaids.

Start-to-finish, most Take5 buyers close in 30-45 days from contract. If you’re earlier in the process and still building credit or savings, my Delaware First-Time Home Buyers guide walks through the full prep process from credit repair to pre-approval.

Real Delaware Take5 Scenarios

The program looks simple on paper, but seeing it applied to real Delaware purchase prices makes the value obvious. Here are three scenarios that reflect the kinds of buyers I work with regularly in my Newark office.

Scenario 1: First-time buyer, $325,000 home in Middletown (New Castle County)

Sarah is a 28-year-old nurse buying her first home. She qualifies for DSHA Welcome Home FHA at 6.500%. With 3.5% down, her first mortgage is $319,319. Take5 gives her $15,966 – enough to cover her entire $11,375 FHA down payment plus roughly $4,500 of her closing costs. She brings less than $2,000 to the closing table.

Scenario 2: First-time buyer couple, $400,000 home in Dover (Kent County)

Marcus and Jamie are both first-time buyers with a combined household income of $102,000 – under Kent County’s $111,400 Welcome Home limit. They qualify for DSHA Welcome Home Conventional with Take5 at 7.000%. With 3% down through HomeReady, their first mortgage is $388,000. Take5 gives them $19,400, covering their $12,000 down payment, all typical closing costs, and leaving a cushion toward prepaids.

Scenario 3: Veteran first-time buyer, $375,000 home in Lewes (Sussex County)

Derek is a qualified veteran buying his first home. Because he’s a veteran, he’s exempt from the first-time buyer rule even if he had owned before. He qualifies for DSHA Welcome Home VA at 6.500% with 0% down. His first mortgage is $375,000, and Take5 gives him $18,750. That covers his entire closing costs, all prepaids, and – if he negotiates seller-paid closing costs in addition – he may leave the closing table with money back.

Where Delaware Buyers Use Take5 Most

Take5 works statewide in Delaware, but certain submarkets see particularly strong fit between buyer profiles and the 5% DPA structure. Based on the first-time buyer activity we track across New Castle, Kent, and Sussex counties, here’s where Take5 tends to line up best:

• Newark and Bear (New Castle County): First-time buyers in the $275,000-$375,000 range pairing Welcome Home FHA + Take5. Median prices here fit comfortably under DSHA’s purchase price limits, and income limits are workable for single-income and dual-income households.
• Middletown (New Castle County): Renters transitioning to ownership in newer subdivisions. Watch for builder contracts that assign the full 4% transfer tax to the buyer – Take5 funds can absorb that, but your offer should account for it up front.
• Dover (Kent County): Buyers combining DSHA Welcome Home Conventional (HomeReady/Home Possible) + Take5. Kent’s lower income limit ($111,400) catches some dual-income households – this is a spot to confirm numbers early.
• Milford and Smyrna: Buyers pairing USDA Welcome Home + Take5. Much of this corridor is USDA-eligible rural area, which means 0% down on the first mortgage and Take5 funds go entirely toward closing costs and prepaids.
• Lewes, Milton, and Sussex County interior: Veteran buyers pairing Welcome Home VA + Take5. Sussex’s income limit matches Kent’s ($111,400 for 1-2 person households), and many veteran buyers arrive with earned entitlement that combines powerfully with the 5% DPA.
• Wilmington (New Castle County): First-time buyers in targeted areas may qualify for higher income limits and are exempt from the first-time buyer rule. If you’re buying in Wilmington, ask specifically whether your target zip code is DSHA-targeted – it changes the eligibility math.

Common Mistakes to Avoid With DSHA Take5

Take5 launched in April 2026, which means a lot of buyers – and frankly, a lot of loan officers – are still learning the new DSHA product structure. Here are the mistakes I see most often across first-time buyer consultations:

• Assuming Take5 works with any first mortgage. It doesn’t. Take5 requires DSHA Welcome Home. If you’ve been pre-approved on a non-DSHA first mortgage, you can’t add Take5 to it – you’d need to re-run the pre-approval on a DSHA Welcome Home file.
• Misunderstanding the income calculation rule. As of April 15, 2025, DSHA Welcome Home counts only the income of borrowers on the Note and/or Mortgage – not every adult living in the household. If only one spouse is on the loan, only that spouse’s income counts toward the limit. Household size still determines which income tier applies.
• Skipping HUD counseling when credit is below 660. If anyone on the loan has a credit score between 620 and 659, the 8-hour HUD-approved counseling course is mandatory before closing. Start this early – not the week before settlement.
• Not reading the transfer tax section of a builder contract. New construction contracts frequently push the full 4% Delaware transfer tax onto the buyer instead of the standard 2%/2% split. On a $400,000 purchase, that’s an $8,000 swing. Always flag this before ratifying a builder contract.
• Planning to refinance in year 1-2. A refinance triggers repayment of the full Take5 balance. If rates drop significantly and you want to refi, build the repayment into your break-even math – don’t assume it’s free money forever.
• Confusing Take5 with Keys4You or First State. They’re all DSHA silent seconds, but the DPA amounts (3%, 4%, 5%) and eligibility are different. If someone quotes you “a 4% DSHA grant through Welcome Home,” that’s Keys4You – not Take5. Make sure you’re comparing apples to apples.

Why Work With the John Thomas Team for Your Take5 Application?

Take5 is a brand-new program. A lot of Delaware loan officers are still getting up to speed on the new DSHA product structure – the Smart Start, First State, Keys4You, Take5, and Diamond in the Rough lineup didn’t exist in its current form before the April 2026 Delaware Mortgage Program rebrand. My team has been originating DSHA loans for more than 20 years and has been tracking DSHA’s program updates since before they launched, so we’re already running Welcome Home + Take5 pre-approvals.

More importantly, we run monthly first-time home buyer seminars that walk you through every step of the process – credit, pre-approval, DSHA programs, house shopping, contract, and closing. You can register for the next one at delawareHomeBuyerSeminar.com, and you can read the full Delaware home buying guide I wrote – Your Guide to Buying Your First Home in Delaware – which covers Delaware DPA programs, credit, and the full closing process.

Take5 Home Loan Delaware – Frequently Asked Questions