Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door)

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) is a deferred second loan for homebuyers in Statewide, Delaware. DSHA's Open Door is the first-time AND repeat homebuyer bundled mortgage product launched as part of DSHA's April 2026 Delaware Mortgage Program rebrand. It pairs a Smart Start 30-year fixed-rate first mortgage (funded by DSHA tax-exempt mortgage revenue bonds) with the First State Home Loan, a 0%-interest deferred second mortgage equal to 3% of the first-mortgage loan amount used for down payment and closing-cost assistance. Open Door has higher income limits than Welcome Home because it serves move-up buyers in addition to first-timers. The first mortgage rate is set by DSHA and is typically below conventional market rates; the second mortgage requires no monthly payment and is fully deferred until refinance, sale, transfer of title, or when the property is no longer the borrower's primary residence. Bundled DSHA product for first-time AND repeat homebuyers (Open Door umbrella). Competitive 30-year fixed-rate Smart Start first mortgage (DSHA mortgage revenue bond rate, typically at or below market) plus First State Home Loan: a 0%-interest, deferred-payment second mortgage equal to 3% of the first mortgage loan amount applied to down payment and/or closing costs. No monthly payment on the second. balance due only on refinance, sale, transfer of title, or when the home is no longer the primary residence. Open Door also allows borrowers to upgrade to Keys4You (4% second) instead of First State. Funding comes from State and Bond.

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Refinance, sale of home, transfer of title, or property no longer used as primary residence (whichever comes first). No monthly payments due during normal occupancy. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 620 minimum FICO. Borrowers with credit scores 659 or below MUST complete DSHA-approved housing counseling. A homebuyer education course is required, through DSHA-approved housing counseling agencies; required for borrowers with FICO 620-659 and recommended for all (HUD-approved counselors). Residency requirement: Property must be located in Delaware (any county) and used as the borrower's principal residence within 60 days of closing. Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualified non-citizen per the underlying loan product (FHA/VA/USDA/Conventional) requirements. Must obtain a DSHA Smart Start first mortgage (30-year fixed) through a DSHA Preferred Lender. Borrower's annual household income must not exceed Open Door county/household-size limits (see income_limit_description). Property must be in Delaware and used as primary residence. Borrowers with FICO 620-659 must complete pre-purchase housing counseling. Federal IRS recapture tax may apply (mortgage revenue bond program). DSHA charges standard tax-service, document-prep, and reservation fees through the lender.

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) limits household income to $179,100. 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.

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) caps the purchase price at $754,406. Eligible property types include Single-family detached, attached townhouse, condominium (on FHA/VA/Fannie/Freddie-approved project lists), planned unit development (PUD), and 1-2 unit owner-occupied properties (per first-mortgage product rules). Manufactured housing eligible per FHA/VA/USDA standards. New construction is eligible. Manufactured homes are eligible.

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) serves homebuyers purchasing in Statewide, Delaware. The program targets specific areas: Federally designated targeted areas under IRC Section 143 receive higher income limits, higher purchase price limits, and waived first-time-homebuyer rules where applicable. Targeted census tracts: New Castle 0006.02, 0019.02, 0021.00, 0023.00, 0029.00, 0030.02; Kent 0425.00; Sussex 0505.03, 0507.11.

Applications for Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved by DSHA Preferred Lender via the DSHA Lender Online portal at the time of first-mortgage reservation/lock; subject to bond allocation 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.