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Keys4You Home Loan

Delaware State Housing Authority (DSHA) · Delaware

Last verified
See what you qualify forOfficial program site →
Assistance

4%

Of the purchase price, as the program sets it

Price cap

$617,241

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Keys4You Home Loan?

Keys4You Home Loan is a deferred second loan for homebuyers in Delaware, administered by Delaware State Housing Authority (DSHA).

  • Keys4You is a DSHA down payment and closing cost assistance second loan equal to 4% of the first mortgage loan amount, offered under both the Welcome Home (first-time buyer) and Open Door (first-time and repeat buyer) programs. It carries 0% interest with no monthly payment; repayment is deferred until refinance, sale, transfer of title, or the home ceasing to be the primary residence. It is one of DSHA's expanded DPA tiers launched with the April 2026 Delaware Mortgage Program rebrand.
  • 4% of first mortgage as down payment/closing cost assistance.
  • 0% interest, no monthly payment.
  • Deferred repayment until sale/refinance/transfer/non-occupancy.
  • Available to both first-time and repeat buyers (via Open Door).
  • Pairs with below-market DSHA first mortgage.
  • Funding comes from DSHA funds (table-funded at closing by DSHA).

How much assistance does it provide?

Keys4You Home Loan provides assistance worth 4% of the purchase price, as set by the program.

  • Amounts are the program's published maximums, not an offer — Delaware State Housing Authority (DSHA) determines any individual award.

Do you have to pay it back?

Keys4You Home Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Principal deferred (no monthly payment) and becomes repayable upon the earliest of: refinance, sale of home, transfer of title, the property is no longer the borrower's primary residence, or 30 years from the date of the mortgage note.
  • The assistance is recorded in Second lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Keys4You Home Loan is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: Minimum FICO 620. Applicants with FICO 659 or below must complete homeownership education through a Delaware HUD-approved housing counseling agency. Manufactured homes: FHA min 660 / USDA min 640. Manual underwrite (FHA only) min 660 with max 43% DTI.
  • Residency: Property must be located in Delaware and used as the borrower's primary residence.
  • Must be paired with a DSHA first mortgage. Borrower may use only one DPA second loan program. Lender must deliver second-loan post-closing packet to DSHA within 1-2 business days of closing. DTI, max household size, max liquid assets, min contribution, new-construction eligibility, HOA, and acreage limits not specified on official sources reviewed (governed by AUS and Master Servicer/agency product guidelines). Exact Keys4You-specific term sheet/addendum not yet published separately; details confirmed from the DSHA Homeownership Loans page and April 2026 rebrand press release.

The program excludes

  • Purchases above the $617,241 price cap

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Keys4You Home Loan sets its income limit as follows: Welcome Home limits (by household size): New Castle County $119,400 (1-2 person) / $137,310 (3+ person); Kent & Sussex $108,800 (1-2) / $125,120 (3+). Targeted-area Welcome Home limits: New Castle $143,280 / $167,160; Kent & Sussex $130,560 / $152,320. Open Door limits: New Castle $143,280 (1-2) / $179,100 (3+); Kent & Sussex $130,560 (1-2) / $163,200 (3+). Income counted for those on the note and/or mortgage only.

  • 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.

What kind of home can it be used for?

Keys4You Home Loan caps the purchase price at $617,241.

  • Eligible property types include Single-family detached, Townhouse/row house/patio home (attached), 1-4 unit dwellings, Condominium, and Manufactured home (FHA or USDA financing only).
  • Manufactured homes are eligible.

Where does it apply?

Keys4You Home Loan serves buyers purchasing anywhere in Delaware.

  • The program targets specific areas: Federally designated targeted-area census tracts qualify for higher income and purchase-price limits and waive the first-time-homebuyer requirement under Welcome Home. Tracts: New Castle 0006.02, 0019.02, 0021.00, 0023.00, 0029.00, 0030.02; Kent 0425.00; Sussex 0505.03, 0507.11.
  • Targeted neighborhoods: Census tracts: New Castle 0006.02, 0019.02, 0021.00, 0023.00, 0029.00, 0030.02; Kent 0425.00; Sussex 0505.03, 0507.11.

How do you apply?

Applications for Keys4You Home Loan go through Delaware State Housing Authority (DSHA), which publishes the current terms and the application steps on its own site.

  1. Contact Delaware State Housing Authority (DSHA) to reserve funds

    Funds are reserved through First-come, first-served via DSHA Mitas online reservation system (https://mitas.destatehousing.com); reservable Mon-Fri 10:00 AM-5:30 PM DE time. 60-day reservation/rate-lock period from reservation to purchase by Master Servicer., and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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