Home financing in Kent County.

Home financing — most commonly called a mortgage — is a loan that lets you buy a home and pay it back over time, usually 15 to 30 years. The lender holds a legal interest in the property until the loan is paid off. Your monthly payment typically covers four things: the loan principal, interest, property taxes, and homeowner's insurance (often called PITI).

There are several common types of home loans available in Kent County:

• **Conventional loans** — Offered by banks, credit unions, and mortgage companies. Usually require a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — Insured by the federal government, these allow lower credit scores (down to 580) and down payments as low as 3.5%. A good entry point for first-time buyers.

• **USDA Rural Development loans** — Much of Kent County outside of Dover qualifies as rural under USDA maps, meaning eligible buyers may pay zero down payment. Income limits apply.

• **VA loans** — For veterans and active-duty military. Delaware has a significant military community near Dover Air Force Base, and VA loans carry no down payment requirement and no private mortgage insurance.

• **ITIN loans** — For buyers without a Social Security number. These are offered by select lenders and credit unions and use your Individual Taxpayer Identification Number instead.

Federal programs set the rules, but **local lenders and community organizations are the ones who actually process your application and know Delaware's market**. That local layer is what this guide is about.

Kent County's economy is anchored by state government jobs in Dover, Dover Air Force Base, healthcare (Bayhealth Medical Center), agriculture, and a growing logistics and light-manufacturing sector. This matters because lenders look at the stability and source of your income — not just the number.

**You may qualify for home financing if you:**

- Have steady employment or self-employment income (including gig work, farming, or contracting), with at least two years of documented history

- Have a credit score of 580 or above for FHA, or 620+ for conventional loans (some ITIN programs are more flexible)

- Can show a debt-to-income (DTI) ratio — all monthly debt payments divided by gross monthly income — of 43% or lower (some programs allow up to 50%)

- Have savings for a down payment and closing costs, OR qualify for down-payment assistance through DSHA

- Are a U.S. citizen, permanent resident, or hold a valid visa — or use an ITIN if you are undocumented

**Self-employed contractors and small investors:** Lenders will want two years of tax returns and profit-and-loss statements. If your taxable income looks low because of deductions, talk with a HUD-approved housing counselor *before* you apply — they can help you present your income accurately.

**Dover Air Force Base community:** If you are active-duty, a veteran, or a surviving spouse, VA loans are almost always your best option. Local lenders familiar with the base can move quickly on VA paperwork.

**Agricultural and rural workers:** Parts of Kent County around Milford, Harrington, Felton, and Woodside are designated rural by USDA. If your household income is below the area limit (roughly $110,650 for a family of four in 2024), you may qualify for a USDA loan with no down payment.

Getting your paperwork together before you apply saves time and stress. While every lender has slightly different requirements, here is what most will ask for in Kent County:

**Identity & Residency**

- Government-issued photo ID (driver's license, passport, or consular ID)

- Social Security number — OR your ITIN if applying through an ITIN-friendly lender

- Immigration documents if applicable (visa, green card, work permit)

**Income**

- Two most recent pay stubs (W-2 employees)

- Two years of federal tax returns (all borrowers)

- Two years of W-2s or 1099s

- Self-employed: business tax returns, a current profit-and-loss statement, and business bank statements

- Proof of any additional income: alimony, Social Security, rental income, or farm income

**Assets**

- Two to three months of bank and investment account statements

- Documentation of any gift funds (a signed gift letter is required)

- Records of any other real estate you own

**Property**

- Purchase agreement (once you have one)

- Homeowner's insurance quote

**Credit**

- Lenders will pull your credit report — you do not need to bring it, but review your own credit at AnnualCreditReport.com beforehand so there are no surprises.

**Tip:** If you have paid rent on time for years but have little formal credit history, some lenders and CDFIs in Delaware accept alternative credit evidence — utility payments, phone bills, and rent receipts. Ask specifically about this.