What home benefits do Delaware veterans get?
Delaware veterans can buy a home with a VA loan that requires no down payment and no monthly mortgage insurance, and veterans who have full entitlement face no VA loan limit. Veterans who receive VA disability compensation don't pay the VA funding fee. And a Delaware veteran rated 100% permanently and totally disabled can get a credit for the full non-vocational school portion of their property tax bill, which is usually the largest part of it.
By David Sordelet | November 11, 2026
To every veteran reading this: thank you.
Today is a day for gratitude, not sales pitches. But over the years I've sat at a lot of kitchen tables with veterans who were never told about benefits they'd already earned. Some paid fees they didn't owe. Some paid school taxes for years when they qualified for a credit that would have erased them.
So here's my Veterans Day contribution: the five home benefits Delaware veterans most often leave on the table.
1. Zero Down, No PMI, and No Loan Limit (With Full Entitlement)
A VA loan lets eligible veterans, service members, and some surviving spouses buy a primary residence with no down payment and no monthly private mortgage insurance.
The part many people get wrong: if you have full entitlement, there's no VA loan limit. Per the VA, you can borrow as long as you can afford the loan and the appraisal supports the price. Your lender still sets the final amount based on your income, credit, and debts.
You have full entitlement if you've never used your VA benefit, or if you've used it, repaid the loan, and had your entitlement restored. If you still have a VA loan open on another home, county loan limits come back into play for how much you can borrow with zero down.
2. The Funding Fee You May Not Owe
Most VA borrowers pay a one-time funding fee. On a purchase with less than 5% down, it's 2.15% of the loan amount the first time you use the benefit and 3.3% after that, per the VA's current fee table. On a $400,000 loan, that's $8,600 the first time.
But many veterans are exempt, including:
Veterans receiving VA compensation for a service-connected disability
Veterans eligible for that compensation who receive retirement or active-duty pay instead
Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
Active-duty members with a Purple Heart
If you have a disability claim in progress, talk to your lender before closing. Timing matters.
3. Delaware's Disabled Veterans School Property Tax Credit
This is the one I see missed the most.
Delaware gives qualifying disabled veterans a credit against 100% of the non-vocational school district property tax on their primary residence. In most of Delaware, school taxes are the biggest piece of the property tax bill.
According to the Delaware Department of Finance, you qualify if you:
Receive 100% VA disability compensation for a service-connected, permanent and total disability (through a 100% rating or individual unemployability)
Have been legally domiciled in Delaware for the last three years
Have paid all prior property taxes on the home
Live in the home as your principal residence
You apply through the county where you live. Once approved, you don't have to reapply every year, but if you buy a different home, you'll need a new application. You can file it before you move.
One catch: it can't be combined with the Senior School Property Tax Credit. Only one school tax credit per property per year. For a qualifying veteran, the disabled veteran credit is almost always the bigger one.
4. Pairing a VA Loan With Delaware Housing Programs
Delaware State Housing Authority (DSHA) programs can work alongside VA financing through participating lenders. Depending on your income and the program, that can mean help with closing costs on top of your VA benefit.
Program rules, income limits, and rates change often, so verify the current details with a DSHA-participating lender. I break down what that assistance actually costs in Delaware down payment assistance: what DSHA programs really cost.
5. For Sellers: VA Offers Are Strong Offers
If you're selling, don't dismiss a VA buyer.
VA buyers are often well qualified, and the VA appraisal includes a check of the home's Minimum Property Requirements (safety, soundness, and sanitation). That's not a reason to avoid VA offers. It's a reason to prepare: obvious items like peeling paint on older homes, missing handrails, or a roof near the end of its life are worth addressing before you list.
The VA does cap seller concessions at 4% of the home's reasonable value. Your agent can structure an offer so the numbers work for both sides.
Frequently Asked Questions
Do Delaware veterans pay property taxes?
Yes, but veterans receiving 100% VA disability compensation for a permanent and total service-connected disability may qualify for a credit covering 100% of the non-vocational school district portion of their property tax. County and municipal taxes still apply.
Is there a VA loan limit in Delaware in 2026?
Not for veterans with full entitlement. The VA backs the loan as long as you can afford it and the appraisal supports the price. Limits apply only if you have partial entitlement, such as an active VA loan on another home.
Who doesn't have to pay the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, surviving spouses receiving DIC, and active-duty Purple Heart recipients are among those exempt.
Can I use a VA loan more than once?
Yes. Your entitlement can be restored after you sell and repay a VA loan, and you can use the benefit again. The funding fee is higher after first use unless you're exempt.
The Bottom Line
You earned these benefits. The VA loan, the funding fee exemption, and Delaware's school tax credit can add up to tens of thousands of dollars over the life of a home, but only if someone tells you about them.
If you're a veteran thinking about buying or selling in Delaware, I'd be honored to help you put every one of these benefits to work. Request your free Home Equity Report at search.teamsordelet.com/seller to see what your current home is worth, or reach out to talk through your options.
Team Sordelet and David Sordelet are licensed real estate professionals, not attorneys, accountants, or financial advisors. This article is general information, not legal, tax, or financial advice. Every situation is different — consult a qualified attorney, CPA, or lender about your specific circumstances before making decisions.
About David Sordelet
Looking for a trusted real estate professional in Delaware or Maryland who can help you make smart choices? Look no further than David Sordelet, Designated Broker of Real Broker Delaware and Team Leader of Team Sordelet.
With over two decades of experience, 1,000+ successful transactions, and 200+ five-star client reviews, David is recognized as one of the region's leading real estate experts. As the Designated Broker in Delaware and a licensed agent in Maryland, he provides unmatched knowledge of Wilmington, Newark, Hockessin, Dover, Middletown, and the Maryland Eastern Shore.
David understands that in real estate, who you work with matters most. That's why he combines personalized service, clear communication, and expert negotiation with the most modern marketing strategies and cutting-edge technology to achieve exceptional results for his clients.
Whether you're a first-time homebuyer, a move-up family, an investor, or a seller looking to maximize value, David Sordelet is the proven real estate professional you can count on.
License: RB-0031238-DE / 5013138-MD
