Delaware · Annual tax credit

Delaware First-Time Homebuyer Tax Credit

35% of interest = ~$2K/year tax credit

Tax credit up to 35% of annual mortgage interest, capped at $2,000/year. Stackable with DSHA mortgage + DPA.

Delaware's Mortgage Credit Certificate offers a 35% credit rate — among the highest in the nation. For every dollar you pay in mortgage interest, 35 cents comes back as a direct federal tax credit. On a $250,000 mortgage at 6.5%, that's approximately $5,600 in year-one tax savings.

The MCC can be combined with DSHA's Welcome Home or Home Again DPA programs. The credit continues for the life of the loan, meaning 10-15 years of stacked benefits: DPA upfront plus thousands annually in tax credits. Delaware buyers who don't ask about the MCC are leaving significant money on the table.

Amount35% of interest = ~$2K/year tax credit
TypeAnnual tax credit
Available inDelaware
First-time buyer requiredYes
Minimum credit score620
Multi-unit eligibleSingle-family only

Programs that pair with this

FHA Loan Saves ~$33,000 on a $200K home vs 20% down
Federal · Subsidized loan
VA Loan $0 down + no monthly mortgage insurance
Federal · Federal benefit
NACA Program $0 down + $0 closing + $0 PMI + below-market rate
National · Nonprofit program
DSHA Welcome Home (Delaware) Below-market rate + 0% deferred DPA
Delaware · Deferred 0% loan
DSHA Home Again (Delaware) Below-market rate + DPA for repeat buyers
Delaware · Subsidized loan
All Delaware programs →

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