Delaware Mortgage Loans

Standard Delaware Mortgage Loans

There are two types of standard mortgage loans in Delaware: fixed-rate and adjustable.

Fixed-Rate: A fixed-rate mortgage keeps the interest rate and scheduled principal-and-interest payment fixed for the life of the loan. Your total monthly payment can still change if property taxes, homeowners insurance, or other escrow costs change. This predictability can help with long-term budgeting.

Adjustable-Rate: An adjustable-rate mortgage (ARM) may start with a lower introductory rate than a comparable fixed-rate loan. After the introductory period, its rate and payment can increase or decrease according to the loan terms.

Compare the adjustment schedule, rate caps, and maximum possible payment before choosing an ARM. Consider whether you could afford higher payments without relying on future income growth or the ability to refinance.

Government-Backed Mortgages in Delaware

Government-backed mortgage programs available to eligible Delaware borrowers include FHA, VA, and USDA. Here’s the difference.

FHA: This is property lending insured by the Federal Housing Administration, designed for borrowers with lower credit scores and smaller down payments.

VA: These mortgages are guaranteed by the Department of Veterans Affairs. They are available to eligible veterans, active-duty military personnel, and surviving spouses, and often come with no down payment required.

USDA: The U.S. Department of Agriculture offers this home loan type, aimed at helping low-to moderate-income borrowers purchase homes in rural areas. There are many areas in the First State that qualify a USDA loan.

Delaware Mortgage Loan Options Based on Loan Size

Get funding for one of Delaware’s many luxury properties with a Jumbo loan. DelawareHomeLoanPros.com has products for borrowers with excellent credit and substantial down payments seeking large mortgages that other lenders may not have. Get funded for hundreds of thousands to millions of dollars for your new home.

While interest rates might be slightly elevated to offset the increased risk, our jumbo loans offer flexibility through both fixed-rate and adjustable-rate options. Let’s see how much you qualify for.

Options Based on Borrower Profile

All borrowers are not created equal. We understand. That’s why we tap into non-traditional mortgage products like DPA, DSHA, and Non-QM’s to help you get into your dream home.

DPA (Down Payment Assistance): Eligibility for a DPA loan depends on factors like being a first-time homebuyer, income limits, credit score, property requirements, and residency. These programs aim to help low-to-moderate income individuals, essential workers, and veterans, achieve homeownership.

DSHA (Delaware State Housing Authority): A “DSHA loan” is a mortgage option backed by the Delaware State Housing Authority (DSHA). This loan type is aimed at helping Delaware residents, both first-time and returning buyers, with affordable financing and down payment assistance. We work with DSHA-approved lenders to explore down payment and closing cost assistance for eligible applicants. Assistance amounts and repayment terms depend on the program, loan amount, and eligibility. View current DSHA program requirements.

Non-QM Loan: A non-qualified mortgage does not meet certain Qualified Mortgage criteria. Some programs use alternative underwriting methods, but documentation, credit requirements, rates, and terms vary by lender. Non-QM loans can carry higher costs and risks. Self-employment or a large loan amount alone does not determine a loan’s QM status. Ask a licensed loan officer which options are available for your situation.