First Start Homebuyers' Program

First Start Homebuyers' Program is a deferred second loan for homebuyers in Wilmington, Delaware. First Start is the City of Wilmington's flagship first-time homebuyer down payment and closing-cost assistance program, administered by the Department of Real Estate & Housing. It provides a deferred 0%-interest second-mortgage of up to the lesser of $15,000 or 6% of the purchase price, structured in two income tiers (CDBG-funded up to 80% AMI; city general funds up to 100% AMI) for buyers purchasing single-family primary residences inside Wilmington city limits. Down payment and closing-cost assistance up to the lesser of $15,000 or 6% of the property purchase price for first-time homebuyers purchasing a single-family primary residence within the City of Wilmington. Funded through two tiers: (1) federal CDBG funds for households at or below 80% AMI, and (2) Wilmington general funds for households up to 100% AMI. Structured as a deferred (zero-interest) second mortgage repayable upon sale, transfer, refinance, or loss of owner-occupancy. Funding comes from Federal CDBG and Local Government.

First Start Homebuyers' Program provides assistance worth 6% of the purchase price, as set by the program. Homebuyer contribution: Minimum $1,000 of buyer's own funds required at closing. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

First Start Homebuyers' Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Deferred second mortgage and principal becomes due upon sale, transfer, refinance (cash-out), or loss of owner-occupancy. No monthly payments during occupancy. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

First Start Homebuyers' Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Single-parent and displaced-homemaker exceptions to the 3-year first-time-homebuyer rule per HUD definitions. On credit, the program states: No published Wilmington-specific minimum; first-mortgage product credit-score minimums apply. A homebuyer education course is required, through HUD-approved housing counseling agency (e.g., Interfaith Community Housing of Delaware, NeighborGood Partners, Neighborhood House); pre-purchase homeownership counseling required. Residency requirement: Property must be located within the corporate limits of the City of Wilmington, DE, and serve as borrower's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules. Buyer must be a first-time homebuyer (no homeownership in prior 3 years), displaced homemaker, or single parent. Minimum $1,000 buyer contribution required. Property must be a single-family home (1-unit) located within the City of Wilmington and serve as buyer's primary residence. Buyer must obtain a fixed-rate first mortgage with a term of 30 years or less. Income tier determines funding pool: CDBG funds for households at or below 80% AMI; City general funds for households up to 100% AMI. Pre-purchase HUD-approved housing counseling required. Application must be submitted by participating lender or housing counselor through the Neighborly online portal.

First Start Homebuyers' Program limits household income to 100% of the area median income, which varies by county and household size. Two-tier qualifying income: Tier 1 (CDBG-funded) at or below 80% HUD AMI for the Wilmington/New Castle County HUD income area; Tier 2 (City general funds) up to 100% HUD AMI. Income range across household sizes spans approximately $64,250 (1-person, 80% AMI) to $151,500 (8-person, 100% AMI) under current HUD limits. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

First Start Homebuyers' Program caps the purchase price as follows: No published Wilmington-specific maximum; property must be located within the City of Wilmington and within FHA/Conventional first-mortgage limits. Eligible property types include Single-family detached. New construction is eligible. Manufactured homes are not eligible.

First Start Homebuyers' Program serves homebuyers purchasing in Wilmington, Delaware.

Applications for First Start Homebuyers' Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Lender or housing counselor submits application through the Neighborly online portal; funds awarded on a first-come, first-served basis subject to availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.