Smart Start Home Loan

What is Smart Start Home Loan?

Smart Start Home Loan is a first mortgage for homebuyers in Statewide County, Delaware, administered by Delaware State Housing Authority (DSHA).

• Smart Start Home Loan is a new DSHA product launched April 2026 under the rebranded Delaware Mortgage Program. It is a 30-year fixed-rate first mortgage at competitive (often at/below market) rates with NO down payment and closing cost assistance second mortgage. It is available under both the Welcome Home (first-time buyer) and Open Door (first-time and repeat buyer) tracks for buyers who do not need or want DPA.
• Competitive below-market fixed interest rate.
• Works with conventional, FHA, VA, and USDA loans.
• Available statewide.
• First-time and repeat buyers eligible via Open Door track.
• Funding comes from DSHA single-family mortgage revenue bond program.

Do you have to pay it back?

Smart Start Home Loan is a first mortgage and is repaid under the terms set by Delaware State Housing Authority (DSHA).

• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

What are the income limits?

Smart Start Home Loan sets its income limit as follows: Income limits vary by track, county, and household size. Welcome Home: New Castle $119,400 (1-2 person)/$137,310 (3+); Kent & Sussex $108,800 (1-2)/$125,120 (3+). Open Door: New Castle $143,280 (1-2)/$179,100 (3+); Kent & Sussex $130,560 (1-2)/$163,200 (3+). Higher limits in targeted areas.

• 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?

Smart Start Home Loan caps the purchase price as follows: Single-family purchase price limits: New Castle $617,241; Kent & Sussex $544,232 (targeted areas higher: New Castle $754,406; Kent & Sussex $665,173).

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Smart Start Home Loan serves buyers purchasing in Statewide County, Delaware.

• The program targets specific areas: 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. Purchasing in a targeted area may allow higher income/sales price limits.

How do you apply?

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

1. 1

   Contact Delaware State Housing Authority (DSHA) to reserve funds

   Funds are reserved through Through DSHA participating/preferred lenders, and are subject to availability.

2. 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.