Buying a Home in Delaware: Mortgage Guide and First-Time Buyer Programs for 2026

Delaware is small in geography but diverse in real estate — from growing Wilmington and Newark suburbs to the resort communities of Rehoboth Beach, Bethany Beach, and Lewes that attract buyers and investors from the mid-Atlantic region and beyond.

Delaware State Housing Authority Programs

The Delaware State Housing Authority offers the Welcome Home program providing affordable mortgage rates and down payment assistance for eligible buyers. DPA of up to $12,500 is available as a 0% interest second mortgage with no monthly payment, forgiven after a qualifying occupancy period.

Mortgage Credit Certificates

Delaware offers a Mortgage Credit Certificate program for first-time buyers — a federal tax credit equal to up to 35% of annual mortgage interest paid, up to $2,000 per year. This is a dollar-for-dollar reduction in federal tax liability that continues for the life of the loan, making homeownership meaningfully more affordable year over year.

Wilmington and Newark: Primary Residence Markets

The Wilmington metro is driven by financial services, healthcare, and pharmaceutical industries. Newark, home to the University of Delaware, has a blend of primary residence and rental demand. Both markets have accessible price points for first-time buyers relative to neighboring Pennsylvania and New Jersey.

Delaware Beach Communities: STR Investment Market

Rehoboth Beach, Bethany Beach, Lewes, and Dewey Beach are among the most popular vacation and investment markets on the East Coast. Strong seasonal STR demand supports robust DSCR financing for vacation rental acquisitions in these coastal communities.

No State Sales Tax

Delaware has no state sales tax, making it attractive for buyers relocating from higher-tax states. Combined with moderate property taxes relative to NJ and PA, Delaware offers a favorable overall cost of living.

At East Coast Mortgage, we originate mortgages across Delaware for primary residence buyers, vacation home buyers, and investors. Book a call to discuss your scenario.