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

Statewide, Delaware

Last verified
See what you qualify forOfficial program site →
Assistance

3%

Of the purchase price, as the program sets it

Income limit

$179,100

The household income limit the program publishes

Price cap

$754,406

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is 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.

How much assistance does it provide?

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) provides assistance worth 3% of the purchase price, as set by the program.

  • Buyer contribution: No DSHA-imposed minimum borrower contribution beyond what the underlying loan product (FHA/VA/USDA/Conventional) requires.
  • 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.

Do you have to pay it back?

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.

Who qualifies?

Repeat and First-Time Homebuyer First State Home Loan Program (DSHA Open Door) 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: 620 minimum FICO. Borrowers with credit scores 659 or below MUST complete DSHA-approved housing counseling.
  • A completed homebuyer education course, through DSHA-approved housing counseling agencies; required for borrowers with FICO 620-659 and recommended for all (HUD-approved counselors)
  • Residency: 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.

The program excludes

  • Purchases above the $754,406 price cap
  • Households above $179,100

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?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program, through DSHA-approved housing counseling agencies; required for borrowers with FICO 620-659 and recommended for all (HUD-approved counselors).

  2. Contact the administering agency to reserve funds

    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., and are subject to availability.

  3. 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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