Delaware buyer's guide · Updated October 2026
Buying a Home in Delaware: The Complete Guide
How much cash you really need, how Delaware's transfer tax works, which DSHA programs can help, who pays your agent, and how to write an offer that gets accepted. Free, plain-English answers from a local team that has helped Delaware buyers for more than 20 years.
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The short answers
- Cash to buy: plan on your down payment (0% to 20% depending on the loan) plus roughly 4% to 6% of the price in closing costs, unless a program or the seller covers some of it.
- Transfer tax: Delaware's realty transfer tax is 4%, and buyers usually pay half (2%). First-time buyers get up to $2,000 off.
- Help is available: the Delaware State Housing Authority (DSHA) offers below-market first mortgages and down payment and closing cost assistance through approved lenders.
- Your agent: you'll sign a buyer agreement before touring homes. In most Delaware sales the seller still agrees to pay the buyer's agent, but it's negotiated each time.
- Closing: Delaware requires a Delaware attorney to handle your settlement.
The Delaware home buying process, step by step
Talk to a lender first
Get pre-approved so you know your real price range and monthly payment, and ask whether you qualify for a DSHA program.Know your cash to close
Add your down payment and closing costs together. That total, not the down payment alone, is what you need in the bank.Sign a buyer agreement
Before you tour homes, you and your agent sign an agreement that spells out the services and how your agent is paid.Shop with a plan
Search listings, pick your communities, and tour homes that truly fit your budget and must-haves.Write a strong offer
Price, terms, deposit, contingencies and timing all matter. A well-built offer can beat a higher one.Inspections and appraisal
Inspect the home, review reports, negotiate repairs, and your lender orders the appraisal.Final loan approval
Keep your credit and job steady. Don't open new credit or make big purchases until you close.Settlement with a Delaware attorney
Final walk-through, sign at settlement, and get your keys.
How much money do you need to buy a house in Delaware?
This is where many first-time buyers get surprised. Your down payment and your closing costs are two different things, and you usually need both.
Down payment
The part of the price you pay up front. Common minimums: 0% for VA and USDA loans, 3.5% for FHA, and 3% to 5% for many conventional loans. Putting less than 20% down on a conventional loan usually adds mortgage insurance.
Closing costs
The fees and taxes to complete the purchase: your half of the transfer tax, lender fees, title insurance, the settlement attorney, recording fees, and prepaid taxes, insurance and escrow. In Delaware, plan on roughly 4% to 6% of the price.
Example: a $300,000 home with an FHA loan
| Down payment (3.5%) | $10,500 |
| Estimated closing costs (4% to 6%) | $12,000 to $18,000 |
| Estimated cash to close before any help | $22,500 to $28,500 |
Estimates only. Seller credits, DSHA assistance, lender credits and gift funds can lower what you bring to settlement. Your lender's Loan Estimate gives your actual numbers. More detail: How much are buyer closing costs in Delaware? and Understanding cash to close.
Delaware's realty transfer tax, explained
Delaware's transfer tax is higher than most states'. The total is typically 4% of the sale price, and the buyer and seller usually split it, so most buyers pay 2%. First-time buyers get a reduction of 0.5% of the price, up to $2,000.
| Buyer's share on a $350,000 home (2%) | $7,000 |
| First-time buyer reduction (0.5%, max $2,000) | −$1,750 |
| First-time buyer pays | $5,250 |
Who pays what is negotiable in the contract. A first-time buyer generally means you have never owned a primary residence. Your settlement attorney confirms the exact amount. Source: Delaware Code Title 30, §5402 and the Delaware Division of Revenue.
DSHA programs and today's rates
The Delaware State Housing Authority (DSHA) offers 30-year fixed mortgages through approved lenders, often at a lower rate than the market, plus down payment and closing cost help. Income and price limits apply, and you'll need a credit score of at least 620 (scores from 620 to 659 require a free homebuyer counseling class).
| Program | Who it's for | What you get |
|---|---|---|
| Welcome Home (first mortgage) | First-time buyers (no home owned in the last 3 years; waived in targeted areas) | DSHA's lowest rates, with or without assistance |
| Open Door (first mortgage) | First-time and repeat buyers | A DSHA mortgage, with assistance available |
| Smart Start | Either program | Lowest DSHA rate, no assistance |
| First State Home Loan | Either program | 3% of the loan for down payment and closing costs |
| Keys4You / Take5 | When offered | 4% or 5% assistance (availability changes) |
| Diamond in the Rough | Welcome Home, FHA | Assistance plus money for repairs on a home that needs work |
DSHA assistance is usually a 0% second mortgage with no monthly payment. You repay it when you sell, refinance, pay off the first mortgage, or stop living in the home. It isn't free money, so read what DSHA assistance really costs you.
Rate snapshot (checked October 15, 2026)
| DSHA Welcome Home, Smart Start (FHA/VA/USDA) | 5.50% |
| DSHA Welcome Home, First State Home Loan (FHA/VA/USDA) | 6.00% |
| DSHA Open Door, Smart Start (FHA/VA/USDA) | 6.125% |
| DSHA Welcome Home, Smart Start (Conventional) | 5.875% |
| National average, 30-year fixed (Freddie Mac, Oct. 8, 2026) | 7.40% |
Rates change often and are not a quote, APR or rate lock. Your rate depends on your credit, loan and lender. See today's DSHA rates on DSHA's website →
What can you afford each month?
Your monthly payment includes principal, interest, property taxes, homeowners insurance, and any mortgage insurance or HOA fees. Here's a reality check on a common question: "I want to spend about $2,000 a month, but I'm looking at $500,000 homes."
A $500,000 home
With 3.5% down at about 6.5%, the all-in payment is roughly $3,700 a month.
A $2,000 monthly budget
Under the same assumptions, $2,000 a month supports a price of roughly $250,000 to $265,000.
Rough estimates using an FHA loan at 6.5% with estimated Delaware taxes, insurance and mortgage insurance. A larger down payment, a lower rate or a DSHA program changes the math. Your lender can run your exact numbers. Read why you shouldn't max out your budget.
Who pays the buyer's agent?
Since the 2024 rule changes, every buyer signs a written agreement with their agent before touring homes. It spells out what your agent does and how they're paid. In most Delaware sales, the seller still agrees to pay the buyer's agent, because sellers focus on their bottom line and want the most buyers possible. That payment is negotiated in each offer, and your agreement explains what happens if a seller won't cover it. We'll walk you through it before you sign anything.
How to write an offer that gets accepted
Most buyers need guidance here, and it's where an experienced agent earns their keep. The highest price doesn't always win. Sellers weigh the whole package:
Strong pre-approval
A full pre-approval from a respected local lender tells the seller your financing is solid.
Smart terms
Settlement date, deposit amount, and how you handle inspections and appraisal can matter as much as price.
Know the market
Recent sales nearby and how long the home has been listed tell you how much room there is to negotiate.
Clean and complete
A clear, complete offer with every document attached is easier for a seller to say yes to.
Meet Iris Sordelet, your buyer specialist
Iris is patient and knowledgeable, licensed for more than 20 years, and has been involved in hundreds of buyer transactions. She teaches buyers the process in a way that makes sense, so you understand every step and decision. Having worked through so many transactions and many different real estate markets, she has the experience and confidence to help your offer get accepted and get you the best deal possible.
Is new construction cheaper?
Not usually up front. New homes often cost more per square foot than comparable resale homes, and lot premiums, upgrades and HOA fees add up. Where new construction can save money is in the first several years: fewer repairs, lower energy bills and builder warranties. Builders sometimes offer rate buydowns or closing cost help through their preferred lender. Always have your own agent at the builder's first visit and get an independent inspection. More: existing home or new construction? and 7 new construction myths.
Do you need an attorney to buy a house in Delaware?
Yes. Delaware requires a Delaware-licensed attorney to conduct real estate settlements. The settlement attorney handles the title search, closing documents, transfer tax and recording. You can choose your own settlement attorney, and we're happy to recommend several. See closing attorneys and title companies in Delaware and Maryland.
Buying in six months? Here's your timeline
- Now (6 months out): talk to a lender, check your credit, and start saving for cash to close. Ask about DSHA programs.
- 3 to 4 months out: meet with Iris, sign your buyer agreement, narrow your communities and set up listing alerts.
- 1 to 3 months out: tour homes and make offers. Most purchases close 30 to 45 days after an accepted offer.
Local lenders we trust
A local lender who knows Delaware programs makes your offer stronger and your closing smoother. These lenders are DSHA-approved or work alongside DSHA-approved loan officers. You're always free to choose any lender you like.
Get the free Team Sordelet Buyer Guide
Our step-by-step guide to buying in Delaware, from pre-approval to keys. It includes:
- What happens from contract to closing
- How we help your offer stand out
- The checklist we use so nothing gets missed
Free. Iris will follow up personally to answer your questions.
Find your next home
More buyer resources
Delaware home buyer FAQs
How much money do I need in the bank to buy a home in Delaware?
Plan for your down payment plus closing costs. Down payments range from 0% (VA and USDA) to 3.5% (FHA) to 3% to 5% for many conventional loans, and Delaware closing costs typically run about 4% to 6% of the price. On a $300,000 FHA purchase that's roughly $22,500 to $28,500 before any help. Seller credits, DSHA assistance and gift funds can lower that amount.
What's the difference between a down payment and closing costs?
The down payment is the part of the purchase price you pay up front. Closing costs are the fees and taxes to complete the sale, such as your share of the transfer tax, lender fees, title insurance, the settlement attorney and prepaid taxes and insurance. You usually need money for both.
Who pays the buyer's agent in Delaware?
You'll sign a written buyer agreement before touring homes that explains how your agent is paid. In most Delaware sales, the seller still agrees to pay the buyer's agent as part of the deal, but it's negotiated in each offer.
Do I need an attorney to buy a house in Delaware?
Yes. Delaware requires a Delaware-licensed attorney to conduct real estate settlements. You can choose your own settlement attorney.
Is there a loan that covers my closing costs?
Yes, in many cases. DSHA offers down payment and closing cost assistance, such as the First State Home Loan's 3% assistance, as a 0% deferred second mortgage. Sellers can also agree to pay part of your closing costs, and some lenders offer credits in exchange for a slightly higher rate.
How much is the transfer tax for buyers in Delaware?
Delaware's realty transfer tax is typically 4% of the price, usually split evenly, so buyers commonly pay 2%. First-time buyers receive a reduction of 0.5% of the price, up to $2,000.
I want to buy a home in six months. When should I start?
Start now. Talk to a lender and check your credit six months out, meet with an agent and set up searches three to four months out, and start touring and making offers one to three months before you want to move. Most purchases close 30 to 45 days after an accepted offer.
I only want to spend $2,000 a month. Can I buy a $500,000 home?
Usually not. With 3.5% down at about 6.5%, a $500,000 home runs roughly $3,700 a month with taxes, insurance and mortgage insurance. A $2,000 monthly budget supports roughly $250,000 to $265,000 under the same assumptions. A lender can tell you exactly what fits.
Is new construction cheaper than buying a resale home?
Usually not up front, since new homes often cost more per square foot once lot premiums and upgrades are added. New construction can save money over the first several years through fewer repairs, efficiency and warranties, and builders sometimes offer rate or closing cost incentives.
Should I get a home inspection?
Yes. A home inspection is optional, but we strongly recommend one on every purchase, including new construction. A licensed inspector checks the roof, structure, plumbing, electrical, heating and cooling, and more, so you know what you're buying. An inspection contingency in your offer lets you negotiate repairs or credits, or walk away, based on what's found. Common add-ons in Delaware include wood-destroying insect (termite), radon, and well and septic inspections for homes that have them.
Who pays for the home inspection in Delaware?
The buyer usually pays for the home inspection and any add-on inspections, paid directly to the inspector, typically at or before the inspection. A general inspection usually costs a few hundred dollars depending on the home's size and age. Some loans have special rules, for example a VA buyer may not be allowed to pay for certain inspections, so your lender and agent will tell you what applies.
What credit score do I need for a DSHA loan?
DSHA requires a minimum credit score of 620. Buyers with scores from 620 to 659 must complete a free homebuyer counseling course.
Can I get a DSHA loan if I've owned a home before?
Yes. DSHA's Open Door program is open to first-time and repeat buyers. Welcome Home is for first-time buyers, which generally means you haven't owned a home in the past three years, though that rule is waived in targeted areas.
Do I need flood insurance in Delaware?
Only if the home is in a designated flood zone and you have a mortgage, and most Delaware homes are not. We'll check the flood map for any home you're considering so there are no surprises.
Ready to start your Delaware home search?
Talk with Iris about your budget, your timeline and the communities you're considering. No pressure, just answers.
Call or text Iris: (302) 593-1523Get the free Buyer GuideTeam office: (302) 566-7215
Team Sordelet of Real Broker, LLC · 1400 Peoples Plaza, Suite 110, Newark, DE 19702 · (302) 566-7215. This page is general information, not legal, tax or lending advice. Rates, program terms and limits change and are set by the lender and DSHA; verify with your lender and settlement attorney. Payment estimates are for illustration only. Lender information is provided for convenience; you may choose any lender. Equal Housing Opportunity.
