Delaware mortgage market at a glance
| Item | Delaware 2026 |
|---|---|
| Conforming loan limit (1-unit) | $832,750, baseline in all three counties |
| FHA loan limit (1-unit) | $541,287 floor in Kent and Sussex; New Castle (Philadelphia metro) typically higher |
| Foreclosure process | Judicial (court required) |
| State housing agency | Delaware State Housing Authority (DSHA) |
Delaware has no sales tax and low property taxes, then claws it back the day you buy: the transfer tax runs 4% in most of the state, among the highest in America. Plan your cash-to-close around that number. It is usually bigger than your lender fees and title insurance combined.
Loan limits in Delaware
All three Delaware counties carry the 2026 baseline conforming limit of $832,750. That comfortably covers the state, from Wilmington rowhomes to most of the Sussex County beach towns. Jumbo loans are only a factor at the true waterfront high end.
FHA limits start at the $541,287 floor in Kent and Sussex counties, while New Castle County, counted as part of the Philadelphia metro area, typically carries a higher limit. With Delaware’s median price in the mid-$300s, FHA covers most of the entry-level market statewide. A strong option if your credit is thin or you have less than 5% down.
First-time buyer programs in Delaware
The Delaware State Housing Authority (DSHA) runs the state’s homeownership programs: Welcome Home for first-time buyers and Home Again for repeat buyers, both 30-year fixed-rate first mortgages with a 620 minimum credit score. The valuable part is the down payment and closing cost help layered on top, structured as deferred, no-interest second loans (recent program names include First State and Diamond in the Rough) that typically cover 3% to 5% of the loan amount.
Given Delaware’s transfer tax, closing cost help is worth more here than in almost any other state. DSHA lends through approved lenders. Programs and current terms are at destatehousing.com.
What closing on a home costs in Delaware
The transfer tax dominates. In most Delaware jurisdictions it totals 4% of the price (2.5% state plus up to 1.5% county or municipal), customarily split evenly between buyer and seller, so the buyer’s half on a $350,000 home is $7,000. First-time buyers get a 0.5% reduction on their portion, capped at $2,000 and limited to the first $400,000 of value, claimed at closing. Delaware also requires attorney involvement in closings, so add attorney fees to the stack.
Foreclosure in Delaware is judicial. Lenders must sue, which stretches timelines well past trustee-sale states and gives defaulting borrowers more procedural protection and more time to cure.
How to get the best rate in Delaware
- Quote DSHA first if you are income-eligible. The closing cost help directly offsets the transfer tax, which is Delaware’s real pain point. Then compare against our best mortgage lenders picks.
- Get three quotes in the same week, including a regional bank active in the Philadelphia metro.
- Negotiate the transfer tax split in your offer. The 50/50 split is custom, not law. In a soft market sellers will move.
- Claim the first-time buyer transfer tax reduction. Your closing attorney handles it, but only if you flag it.
- Run the full cash-to-close, transfer tax included, through our mortgage calculator, and read our down payment guide before deciding how much to put down versus hold back for the tax bill.
For lender rankings and loan-type explainers, start at our mortgages hub.