2024 FHA Loan Limits in Delaware
An FHA loan can help you purchase a home with a down payment as small as 3.5% with less than stellar credit. In Delaware, two counties are subject to the lowest FHA loan limits of $498,257 for a single-family home, but none of the three counties allows you to borrow quite as much as the national maximum loan limit of $1,149,825. Today, we’ll review FHA loan amounts and borrowing requirements for Delawareans across the state.
Delaware FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| KENT | $498,257 | $637,950 | $771,125 | $958,350 | $300,000 |
| NEW CASTLE | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| SUSSEX | $498,257 | $637,950 | $771,125 | $958,350 | $400,000 |
How are FHA loan limits determined?
FHA loan limits are determined as a percentage of the limits set for conforming loans by the Federal Housing Finance Agency (FHFA). For 2024, the conforming loan limit is $766,550 in most areas. In high-cost-of-living areas and certain non-contiguous states and territories, the limits are higher at $1,149,825.
To calculate the FHA loan limit, you’d take the typical loan limit – $766,550 – and multiply it by 65%. That would give you the floor, which is the loan limit you see in Kent and Sussex Counties: $498,257.
The ceiling is $1,149,825. The ceiling only really comes into play if 115% of the area median house price is larger than the floor. In New Castle County, that would be $485,000 times 115%, giving you the county’s FHA loan limit of $557,750 for a single-family home. You can use this math until 115% of the home value hits the ceiling – where the limit maxes out.
How to qualify for an FHA loan in Delaware
An FHA loan can get you in the door with a low down payment, and could allow you to secure a loan even if you have less than perfect credit. In Delaware, additional down payment assistance may be available through the Delaware State Housing Authority if you have a credit score of at least 620. But that’s higher than FHA loan requirements, which are as follows:
- A 3.5% down payment and a credit score of at least 580.
- Secure a 10% down payment. For borrowers with a credit score between 500 and 579. If your credit score is below 500, you will not qualify for an FHA home loan.
- Prove a debt-to-income (DTI) ratio of 43% or less. Your total debt must be 43% or less of your income for you to qualify for an FHA loan. Delaware is not a community property state, so debt held in your spouse’s name does not count toward your DTI ratio unless they are listed on the mortgage application with you.
- Show that mortgage expenses will be less than 31% of your income. If your monthly payments would be more than 31% of your gross income, you typically won’t qualify for an FHA loan. However, if you’re purchasing what the FHA considers to be an energy efficient home, that ratio bumps up to 33% of your income.
- Pay mortgage insurance premiums. There are two types of FHA mortgage insurance premiums on FHA loans. The first is upfront mortgage insurance premiums (UFMIP). UFMIP is typically 1.75% of your base loan amount and is usually rolled into your total loan. Every month, you’ll also likely pay annual mortgage insurance premiums (AMIP), which were lowered in 2023 to anywhere between 0.15% to 0.75% depending on the loan amount and term. (The old rates used to be between 0.45% and 1.05%, so it’s cheaper now than it used to be.)
- Get an FHA home appraisal. This is not as thorough as a home inspection, though it does look at the readily observable characteristics of the home to gather valuation and safety data.
- Meet occupancy requirements. You generally must move into the home within 60 days of closing, and live there for at least a year.
Buying a multifamily property with an FHA loan
You can also use an FHA loan to purchase a multifamily property with up to four units. The borrowing requirements are mostly the same, including the fact that you must live in one of the units yourself for at least 12 months. However, you may be allowed to count rent from the other units toward your DTI ratio calculations, which means you could potentially qualify for a larger mortgage than you would with a single-family purchase.
Both Kent and Sussex County conform to low-cost FHA loan limits. Bear in mind, though, that maximum loan amounts for multifamily properties are a bit higher in New Castle County.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in Delaware
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 Flagstar Bank | 580 | ||
 Guaranteed Rate | Not disclosed | ||
 PennyMac | 580 | ||
 Rocket Mortgage | 580 | ||
 BMO Harris | 580 |
