DSHA "Welcome Home" vs. "Home Again": Which Delaware Mortgage is Right for You?

If you are looking to purchase a home in the First State, the Delaware State Housing Authority (DSHA) provides highly competitive 30-year fixed-rate mortgages to make your dream a reality. At Bond Street Mortgage, we help buyers navigate DSHA's two primary loan programs: the Welcome Home program and the Home Again program.

The Welcome Home Program

This program is specifically designed for first-time homebuyers, defined as individuals who have not had an ownership interest in a primary residence during the three years prior to executing the mortgage note. However, this first-time buyer requirement is waived if you are a Qualified Veteran or if you purchase a home in a designated Targeted Area.

The Home Again Program

If you are a repeat homebuyer or simply do not meet the strict qualifications of the Welcome Home program, the Home Again program is your best option. This program is tailored for buyers who are ready to re-enter the market or move up to a new primary residence.

Down Payment Assistance Options

Both programs offer strong down payment assistance (DPA) options to help cover your upfront costs:

• First State Home Loan: Provides a deferred second loan equal to 3% of your first mortgage amount. You do not have to repay the principal until you sell, refinance, transfer the title, or no longer use the home as your primary residence (or after 30 years).
• Home Sweet Home: If you purchase a home for $285,000 or less, you can receive $10,000 in DPA. This loan is forgiven at a rate of 10% per year; if you stay in the home for 10 years as your primary residence, it is entirely forgiven.

Credit Score and Education Requirements

To qualify for DSHA homeownership programs, you must have a minimum FICO credit score of 620. If your score is 659 or below, you are required to complete a homeownership education course through a HUD-approved agency in Delaware. This education requirement helps ensure that first-time and returning buyers understand budgeting, credit, and the responsibilities of homeownership.

Choosing Between Welcome Home and Home Again

The right program for you depends on your recent homeownership history, credit profile, and the type of property you want to buy. First-time buyers who meet the three-year rule (or qualify as veterans or are buying in Targeted Areas) often lean toward Welcome Home, while repeat buyers typically benefit from the flexibility of Home Again.

If you are unsure which path is best, a Bond Street Mortgage advisor can review your goals, credit profile, and income to help you select the program that maximizes your savings and long-term affordability.