Wilmington, DE
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Accepting Applications
The Department of Real Estate and Housing is pleased announce that the Wilmington First Start Homebuyer Program is accepting applications.
Wilmington 1st Start Homebuyer Program Manual 5.7.24
Please be advised that as of May 1, 2024, the 1st Start Homebuyer Program has moved to an online application portal. This version of the manual is the most up to date version May 7, 2024. Please refer to this current version of the manual only. Note: All attachments have been removed and are now available in Neighborly.
How to Apply
- Income eligible homebuyers must submit a completed application through their Lender or Housing Counselor.
- Lenders and Counselors: For first-time access, contact firststarthousing@wilmingtonde.gov to obtain log on information for Neighborly, the online application portal.
Who is Eligible
There will be $300,000 available in federal CDBG funds (with income limits of 80% of median income) and $200,000 in general funds (with income limits of 100% of median income) for this program. Each applicant will be eligible for assistance totaling the lesser of $15,000 or 6% of a property purchase price. A minimal contribution of $1,000 is required from the buyer. The funds may be used for down payments or closing costs. In order to qualify for this funding, an applicant must seek a fixed rate mortgage and the loan may not exceed a term of more than 30 years. This is a program for first-time homebuyers, persons who have not owned a home in the past three years, or for displaced homemakers and single parents.
| City of Wilmington Income Limits | |
| Effective April 1, 2024 | |
| 100% Area Median Income | |
| Household Size | Income Limit |
| 1 person | $ 80,300.00 |
| 2 persons | $ 91,800.00 |
| 3 persons | $103,300.00 |
| 4 persons | $114,700.00 |
| 5 persons | $123,900.00 |
| 6 persons | $133,100.00 |
| 7 persons | $142,300.00 |
| 8 persons | $151,500.00 |
| City of Wilmington Income Limits | |
| Effective April 1, 2024 | |
| 80% Area Median Income | |
| Household Size | Income Limit |
| 1 person | $ 64,250.00 |
| 2 persons | $ 73,400.00 |
| 3 persons | $ 82,600.00 |
| 4 persons | $ 91,750.00 |
| 5 persons | $ 99,100.00 |
| 6 persons | $106,450.00 |
| 7 persons | $113,800.00 |
| 8 persons | $121,150.00 |
Wilmington’s First Start Homebuyer Program FAQ
Where Can the Funds be Applied?
Eligible properties for the program are limited to single-family homes that will serve as the prospective homebuyer’s primary residence within the City of Wilmington.Who can apply for this assistance?
Prospective homebuyers must meet the following requirements to be eligible to receive assistance:
- Have not owned a home in the last 3 years (or be a single parent or displaced homemaker)
- Be a qualified low-income or moderate-income household.
- Be the owner of the property after purchase.
- Occupy the property as their primary residence after the purchase!
- Attending certified housing counseling certificate course!
- Purchase a home within the City of Wilmington
- Be a United States citizen or legal resident.
Eligible participants do not need to be residents of the City of Wilmington at the time of application.
How much is available to a qualified buyer?
The homebuyer must have at least $1,000 (excluding gifts) to contribute towards closing costs. All assistance provided by the City’s First-Start Program will be based on demonstrated need. Closing cost and downpayment assistance are capped at the lesser of $15,000 or six percent (6%) of the property’s purchase price. The funds can be used for a combination of downpayment and/or closing costs. Prepaid fees will not be reimbursed with closing costs.How can I apply for the program?
Applicants must have their Housing Counselor or Lender submit a completed application before the City staff can review it for compliance and commit funds to your settlement.Can I submit a partially completed application to reserve funds?
No. All incomplete applications will be rejected.What banks can I work with?
For an applicant to receive assistance, the following loan terms and underwriting requirements must be met. Primary Mortgage Lenders will be asked to write a letter of acceptance of these provisions in order to participate in the Program.
- Loans must have a fixed rate interest rate.
- Lenders are encouraged to offer “below-market” interest rates.
- Loans may not exceed a term of more than thirty (30) years.
- In situations where the applicant’s gross income exceeds a 45% debt-to-income ratio, lenders must be willing to consider income from other household members as a “compensating factor.”
Are there income restrictions?
Yes. The limits can be reviewed HERE.If you have questions, please speak to your Housing Counselor or Lender. If you need to, please call 311 and leave your specific question. The Department of Real Estate & Housing staff will work on providing an answer ASAP.