Wilmington Delaware Employee Homebuyer Assistance Program (Live Near Your Work)
Wilmington Employee Homebuyer Assistance Program – Quick Overview
Current as of May 2026. The Wilmington Employee Homebuyer Assistance Program (Live Near Your Work) may give eligible City of Wilmington employees up to $4,000 toward down payment and closing costs on a 1-unit primary residence inside City limits. Funding, income, and sales price limits are set by the City.
If you work for the City of Wilmington and you are thinking about buying your first home, there is a benefit you may not know about: the City sets aside its own money to help its employees buy a home inside the City. I am John Thomas, and over 20-plus years lending in Delaware I have walked many City of Wilmington employees through this exact program. Here is how the Live Near Your Work grant works, who qualifies, and how I help you line it up with the right first mortgage.
Ready to see if you qualify as a City of Wilmington employee?
When you reach out, we confirm your City-employee eligibility, review your first-mortgage options, help with the counseling step, and coordinate the grant so the funds are ready at settlement.
Table of Contents
What Is the Wilmington Employee Homebuyer Assistance Program?
The Wilmington Employee Homebuyer Assistance Program, often called Live Near Your Work (LNYW), is a grant program run by the City of Wilmington. The City has set aside some of its own funding to help its employees buy a home inside the City. An eligible employee can receive up to $4,000 toward down payment and settlement costs, and the amount cannot be more than your actual down payment and closing costs.
Because it is a grant, the money generally does not have to be paid back as long as you live in the home as your primary residence for at least five years. This is one of several Delaware down payment assistance programs available to Wilmington buyers, and it is specifically a benefit for people who work for the City. If you are not a City employee, the City of Wilmington First Start program is usually the better path – it is open to income-eligible buyers in general and offers larger assistance.
Watch John walk through the full Live Near Your Work program – who qualifies, the grant amount, the income and sales price limits, and the step-by-step process before you go under contract:
Prefer the quick version? Here is a short overview of the program in just a few minutes:
How Do I Qualify for the Live Near Your Work Grant?
The program has a handful of requirements set by the City of Wilmington. To be eligible, you generally must:
- Be a City of Wilmington employee who has completed your probationary period.
- Buy a home located within City of Wilmington boundaries.
- Contribute at least $1,000 of your own funds toward the transaction.
- Use a fixed-rate first mortgage with no cash back to you at closing.
- Complete HUD-approved homeownership counseling (this may be waived if you owned a home within the last three years and can document it).
- Keep the home as your primary residence for at least five years.
- Receive funding only once in any five-year period.
- Apply while funds are available – the grant depends on current City funding.
The length of the probationary period is set by City of Wilmington HR policy, so check with your HR department on your exact eligibility date. Once you are approved, the City typically reserves your funding for about six months from the date of signing, so it helps to move forward while you have time. Eligibility, the exact amount, and the limits below are set by the City and can change, so we always confirm them against the current City application form before you go to contract.
What Are the Income and Sales Price Limits?
To use the Live Near Your Work grant in New Castle County, your household income must be at or below the City limit, and the home must be at or below the maximum sales price. These are the most recently published City figures (current as of May 2026); always confirm the live numbers on the City application form before contract, because municipal limits update on their own schedule. You can review the program rules in the City of Wilmington Employee Homebuyer Assistance Program overview.
| Limit (New Castle County) | Amount |
|---|---|
| Household income – 1 or 2 person household | $115,920 |
| Household income – 3 or more person household | $135,240 |
| Maximum sales price | $362,523 |
| Maximum grant | Up to $4,000 (not to exceed down payment and closing costs) |
| Minimum buyer contribution | $1,000 |
How Does the $4,000 Grant Affect My Cash to Close?
The grant goes toward your down payment and closing costs at settlement, which lowers the cash you bring to the table. Here is a simple example for a City employee buying a $250,000 home in Wilmington with an FHA loan. This is an example only – your real numbers depend on the property, your loan, any seller credits, and final closing costs.
| Example (FHA, $250,000 Wilmington home) | Amount |
|---|---|
| Purchase price | $250,000 |
| FHA minimum down payment (3.5%) | $8,750 |
| Estimated closing costs (example, about 3%) | about $7,500 |
| Estimated cash needed before assistance | about $16,250 |
| Less Live Near Your Work grant | up to -$4,000 |
| Estimated cash to close after the grant | about $12,250 |
What Kind of Home Can I Buy?
The home you buy with the Live Near Your Work grant must meet three main conditions:
- It must be located within the City of Wilmington.
- It must be a 1-unit property that you are purchasing.
- It must be your primary residence, which you will live in for at least five years.
Most City employees pair the grant with an FHA loan or a conventional loan as the first mortgage. The grant has to sit behind a fixed-rate first mortgage with no cash out, which both of those programs can satisfy. If you want a sense of the broader Wilmington market and what your options look like as a buyer, our Wilmington mortgage guide is a good starting point. The home just has to be inside Wilmington city limits, which covers neighborhoods like Trolley Square, Cool Spring, Forty Acres, the Highlands, Hilltop, the West Side, and Brandywine Village – we help City employees buying anywhere inside City limits and across New Castle County understand how the grant fits their first mortgage.
How Does This Compare to Other Wilmington Down Payment Programs?
Wilmington has more than one down payment program, and they are easy to mix up. Live Near Your Work is the employee benefit. The others are open to the general public if you meet income limits. Here is how they line up:
| Program | Who it is for | Typical assistance |
|---|---|---|
| Live Near Your Work (Employee Homebuyer Assistance) – this page | City of Wilmington employees past probation, buying inside City limits | Up to $4,000, generally forgiven after 5 years |
| City of Wilmington First Start | Income-eligible first-time buyers (or no ownership in 3 years) buying in the City – you do not have to be a City employee | Up to $15,000 toward down payment and closing costs |
| City of Wilmington HAP | Income-eligible Wilmington buyers (legacy program) | See the HAP page for current status and alternatives |
| DSHA Welcome Home and other statewide DSHA options | First-time buyers statewide, including Wilmington | 3 to 5 percent down payment assistance depending on the option |
In some cases a City employee may be able to combine programs – for example pairing Live Near Your Work with a statewide DSHA option – depending on each program’s current rules and funding. Whether that works for your situation depends on the details, so it is worth a quick call to map it out.
Who Is This Program a Good Fit For?
This program may be a good fit if you:
- Work for the City of Wilmington and have completed your probationary period.
- Are buying a 1-unit primary residence inside City of Wilmington limits.
- Are at or below the City income and sales price limits.
- Are using a fixed-rate FHA or conventional first mortgage and can keep the home as your primary residence for five years.
This program may not be the right fit if you:
- Do not work for the City of Wilmington – look at the City First Start program or statewide DSHA down payment assistance instead.
- Want to buy outside City of Wilmington limits.
- Are above the City income or sales price limit (statewide DSHA or PRMI programs may have different limits).
- Want cash back at closing or an adjustable-rate loan, or cannot keep the home as your primary residence for five years.
Is the Grant Taxable?
Yes. Under the program rules, the City issues a 1099 form for the grant amount, and the assistance is treated as taxable income to the employee. This is simply how the City structures the benefit. Because everyone’s tax situation is different, we recommend you discuss the 1099 with your tax advisor so you know what to expect when you file. It does not change how the grant helps at closing – it just means you will see it reported as income for that year.
How Do I Complete Homebuyer Counseling?
The program requires HUD-approved homeownership counseling before you buy (this can be waived if you owned a home within the last three years and document it). The easiest way to satisfy the requirement is to attend a Delaware First-Time Home Buyer Seminar. Our team hosts free seminars where you will get a copy of your tri-merge credit report, tips on building or improving your credit, and a walk-through of how to negotiate price and terms. We also cover your first mortgage options – FHA, VA, conventional, and the various down payment programs – so you leave knowing exactly how the Live Near Your Work grant fits your purchase.
What Is the Step-by-Step Process?
The City sets out a clear order of steps for the Live Near Your Work grant. Here is how it generally flows, and where we help on the mortgage side:
- Apply for the program through the City of Wilmington Real Estate & Housing Department or Human Resources.
- The City verifies your employment.
- Complete HUD-approved homeownership counseling (or document a waiver for prior ownership).
- Bring your eligibility forms to your approved lender – this is where we line up your first mortgage and coordinate the grant.
- Keep the City updated on your status as you find a home and move toward settlement.
- Request the funds at least five days before settlement so the money is ready at closing.
Documents you may need along the way:
- City of Wilmington employment verification (handled with City HR).
- Income documentation, such as recent pay stubs and W-2s.
- Your signed purchase contract.
- Your homeownership counseling certificate (or waiver documentation).
- Your first-mortgage pre-approval.
How Do I Get Started?
Getting started is simple: call the John Thomas Team at 302-703-0727, Schedule Appointment online, or apply online. We will confirm your eligibility as a City of Wilmington employee, line up your first mortgage, help you through the counseling step, and coordinate the grant so the funds are ready at settlement. Because all funding depends on availability from the City, it is best to reach out early. If you are still exploring, our Delaware first-time home buyer guide walks through the whole process from credit to closing.
Frequently Asked Questions
Who is eligible for the Wilmington Employee Homebuyer Assistance Program?
You generally must be a City of Wilmington employee who has completed your probationary period, you must be buying a 1-unit primary residence inside City of Wilmington boundaries, and you must meet the City’s income and sales price limits. You also complete homeownership counseling, contribute at least 1,000 dollars of your own funds, and use a fixed-rate first mortgage with no cash back.
I am a City of Wilmington employee but still in my probationary period. Can I apply?
The program requires that you have completed your probationary period, so most newly hired employees are not yet eligible until that period ends. If you are close, it is worth a call so we can map out your timeline and have your first mortgage and counseling ready so you can move quickly once you qualify.
I owned a home in the last three years. Can the counseling be waived?
The homeownership counseling requirement can be waived for documented homeownership within the last three years. You would need to provide documentation of that prior ownership to the City. Even if it is waived, attending a free seminar is still a useful refresher on the current process and programs.
What happens to the 4,000 dollars if I move before five years?
The grant is generally structured so it does not have to be repaid as long as you keep the home as your primary residence for at least five years. If you move or stop using it as your primary residence before then, repayment terms set by the City may apply. Confirm the exact terms on the current City application form before you sign.
Can I use the grant to buy a home outside City of Wilmington limits?
No. The Live Near Your Work grant requires that the property be located within City of Wilmington boundaries. If you want to buy elsewhere in Delaware, statewide DSHA down payment assistance options may be a better fit, and we can walk you through those.
Is the down payment grant taxable?
Yes. Under the program rules, the City issues a 1099 for the grant amount and it is treated as taxable income. This does not change how it helps at closing, but you should discuss the 1099 with your tax advisor so you know what to expect at tax time.
What kind of first mortgage can I use with the grant?
The first mortgage must be a fixed-rate loan with no cash back to you at closing. Most City employees pair the grant with an FHA loan or a conventional loan. We confirm the structure works with the grant before you go to contract.
I am not a City of Wilmington employee. Are there other Wilmington down payment programs?
Yes. The City of Wilmington First Start program is open to income-eligible first-time buyers in general and offers larger assistance, and statewide DSHA programs are available to first-time buyers across Delaware. We can compare your options on a quick call.
Can police officers, firefighters, public works, and administrative City employees use this program?
Yes. The program is open to City of Wilmington employees across departments who have completed their probationary period – eligibility is based on your employment with the City, not your specific job title. Confirm your status with City HR.
What if my household income is over the City limit?
If your income is above the Live Near Your Work limit, you would not qualify for this specific grant, but you may still have options. Statewide DSHA programs and certain PRMI programs have different income limits – some higher, some with none – so it is worth comparing alternatives on a quick call.
About John R. Thomas, Branch Manager and Mortgage Loan Officer
John Thomas (NMLS #38783) has helped Delaware and Maryland buyers for more than 20 years at Primary Residential Mortgage, Inc. in Newark, DE. He has guided many City of Wilmington employees through the Live Near Your Work grant, pairing it with the right first mortgage so the funds are ready at settlement. He is the author of Your Guide to Buying Your First Home in Delaware and hosts free monthly homebuyer seminars across the state.
John holds a BS in Physics Education from the University of Delaware and an MS in Curriculum and Instruction from Delaware State University. He is licensed in 17 states (AL, DC, DE, FL, GA, IN, KS, MD, MN, MO, NC, NJ, OH, PA, SC, TN, VA); his team serves home buyers across Delaware and Maryland. NMLS #38783.
John Thomas Team – Primary Residential Mortgage, Inc., 248 E Chestnut Hill Rd, Newark, DE 19713. Phone: 302-703-0727. Email: JohnThomasTeam@primeres.com. NMLS #38783. See John Thomas Team on Google – 4.8 stars across 285 reviews.
Connect: Facebook | YouTube | Instagram | TikTok | Twitter/X | Pinterest | LinkedIn
Work for the City of Wilmington? Let’s see what your $4,000 grant can do.
Last Updated: May 2026. Mortgage content reviewed by John R. Thomas, NMLS #38783, Branch Manager at Primary Residential Mortgage, Inc.
John Thomas Team – Primary Residential Mortgage, Inc., 248 E Chestnut Hill Rd, Newark, DE 19713 | 302-703-0727 | NMLS #38783 | (c) 2026 John R. Thomas. All Rights Reserved.
