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2025 FHA Loan Limits in Delaware

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With the help of an FHA loan, Delaware homebuyers struggling to qualify for a mortgage due to credit struggles or minimal down payment savings may be able to buy property. The amount you can borrow through a Federal Housing Administration (FHA)-backed loan depends on where you live.

Most Delaware residents have FHA loan limits up to $524,225 for a single-family home. Homebuyers in pricier New Castle County, however, can get an FHA loan of up to $594,550.

Delaware FHA loan limits by county

Delaware single-family FHA loan limits

County name	One unit	Two units	Three units	Four units	Median sales price
KENT	$524,225	$671,200	$811,275	$1,008,300	$325,000
NEW CASTLE	$594,550	$761,150	$920,050	$1,143,400	$517,000
SUSSEX	$524,225	$671,200	$811,275	$1,008,300	$422,000

How are FHA loan limits determined?

The FHA reviews the loan limits it sets annually to account for changing home prices. It uses a formula outlined in the National Housing Act to do so. Maximum FHA loan sizes are based on a percentage of the national conforming loan limit for conventional mortgages owned or backed by government-sponsored entities Freddie Mac and Fannie Mae.

In 2025, homebuyers in most U.S. counties can get an FHA loan up to the loan limit “floor” of $524,225, or 65% of the national conforming loan limit of $806,500. Those buying in major cities or other pricey areas can borrow more, potentially up to the loan limit “ceiling” amount of $1,209,750, or 150% of that same national conforming loan limit.

The biggest FHA loan possible for a single-family home purchase in Delaware is $594,550 in New Castle County. Buyers in the state’s other two counties, Kent and Sussex, can borrow up to $524,225.

How to qualify for an FHA loan in Delaware

Since the government will reimburse lenders if you default on your mortgage payments with an FHA loan, this home financing option has more accessible qualification requirements than conventional home loans. To get approved for an FHA loan, you’ll need to meet the following criteria:

Credit score of at least 500. While you can qualify with a credit score between 500 and 580, you’ll need to make a down payment of 10% or more. If you have a credit score of at least 580, the minimum down payment required drops to 3.5%. Borrowers with a past bankruptcy event in their credit history may also be more likely to get an FHA loan than a conventional loan.
Minimum down payment of 3.5%. You can finance all but 3.5% of your home purchase through an FHA loan if your credit score is 580 or higher. Those with a lower credit score must put down 10% or more to get approved.
Maximum debt-to-income (DTI) ratio of 43%. Lenders will check that you can afford your monthly FHA loan payments by dividing your total debt by your pretax income. The higher the resulting ratio, the riskier a borrower you’re perceived to be. FHA lenders require applicants to have a DTI of 43% or less. If your ratio tops 43%, you may still qualify, but you’ll need a strong credit score and cash reserves.
Live in the purchased home. FHA loans cannot be used to buy vacation homes or rental properties. Any home purchased with an FHA loan must be used as your primary residence for at least one year.
Pay FHA mortgage insurance. FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium, equal to 1.75% of the total loan, and an annual mortgage insurance premium, which costs between 0.15% and 0.75% of the total loan amount.
Get an FHA appraisal. Homes bought with an FHA loan must undergo and pass an FHA appraisal to verify the value and condition of the property and to ensure it is safe to live in.
Stable work history. While FHA loans have no specific income requirements, lenders will still request to see pay stubs, W-2s, 1099s or other documents for at least the past two years to prove your income and employment.

Buying a multifamily property with an FHA loan

FHA loans can help you secure a home for yourself and generate some rental income if they’re used to buy a multifamily property. The property must contain between two and four separate housing units, and you’ll need to live in one to qualify.

As with single-family FHA loans, a 3.5% minimum down payment is required, but the maximum amount you can borrow increases with each additional unit. To get a multifamily FHA loan, you’ll need to meet the following criteria:

Minimum credit score of 500. To get an FHA loan with a score between 500 to 580, you’ll need a 10% down payment.
3.5% down payment. Those with credit scores of 580 or higher can put down as little as 3.5% to qualify.
Debt-to-income ratio of 43% or less. Your chances of qualifying for an FHA loan improve with a lower DTI ratio, which is why you should aim to keep your total debt payments to 43% or less of your pretax income. If your DTI is higher, you may still get approved, but you’ll need a solid credit score and large cash reserves.
Live in one of the units. You must use one of the units within the property as your primary residence for at least a year. The remaining units can be rented out.
FHA mortgage insurance. You’ll pay additional insurance expenses with an FHA loan, including an upfront mortgage insurance premium of 1.75% of the total loan and an annual mortgage insurance premium of between 0.15% and 0.75% of the loan amount.
FHA appraisal. FHA loan approval hinges on the property passing an FHA appraisal first.
Stable work history. Expect to show lenders proof of your income dating back at least two years. Any anticipated rental earnings from the property can also be factored into your application.