Delaware First Time Home Buyer Loans

If you’re a first time home buyer in Delaware, consider all your options before you decide how you want to finance your home purchase.  Confusion and stress are common when buying a home, but that’s why we’re here.  Our goal is to help you fund your home purchase successfully, without any of the hassles that sometimes accompany the process.

Delaware First Time Home Buyer Information

If you’re unsure what steps are involved in the process, our detailed first time home buyer checklist can help.  If you don’t have time to read through it, at least check out the five most important steps listed here.

• Figure out how much you can afford to borrow.  This is going to depend largely on your income, your future income expectations, and the type and size of home you need.  Don’t skip this step, whatever you do.  Don’t assume that you’ll “pay it off some day.”  Determine how much money is best for you to borrow.  This is step one.
• Know the different loan types.  There are many different mortgage programs and loan types available.  No two of them are the same.  Find out what advantages and disadvantages each one offers.  Pay special attention to the FHA mortgage program, which offers unique benefits to first time home buyers.
• Know your credit score.  Don’t let your lender find out before you do.  If you have poor credit, it’s worth getting it fixed before you try to take on more debt.
• Compare the different mortgage rates offered by lenders in your area.  This is one of the most crucial steps in the process.  If you skip this, you may spend more money on your mortgage than you need to.
• Make sure you’re preapproved for the loan you need.  If you’re not preapproved, you may not be able to negotiate convincingly with sellers and you may miss out on the home you want while waiting for your mortgage application to go through.  Get preapproved early in the process and save yourself the stress.

These steps, at the very least, are essential.  Read through our checklist for additional details.  The mortgage calculator below can help you determine what your monthly payment amount will be.

1st Time Home Buyer Loan Programs

The Delaware FHA loan program is one of the best funding options available to first time home buyers in the state.  These loans are backed by the government through the Federal Housing Administration (FHA) and offer many unique benefits.  There aren’t any programs like the FHA program.

You don’t need high credit to qualify.  These loans are well suited to borrowers with imperfect credit.  You also won’t have to make a high down payment.  The standard down payment amount for FHA mortgages is 3.5% of the purchase price.  This is a great benefit to first time home buyers who don’t’ have equity from previous homes to put toward their purchases.

You can’t borrow an infinite amount of money through the FHA loan program, though.  There are maximum borrowing caps you’ll need to be aware of.  Find out what the Delaware FHA loan limits are in your area.

You can find additional information about FHA loans on the Delaware page of the FHA website.

About Delaware

Delaware is one of the original thirteen colonies and is called the First State, because it was the first state to ratify the Constitution.  It is a small, densely populated state with many major cities and is close to other major metropolitan areas.

In Delaware, the median home price is $130,400 as compared to $119,600 for the rest of the country.  This can make purchasing a first home difficult, but many financing options are available to assist first time home buyers in this state.

Popular loan programs

Lenders in: Delaware.