FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Delaware

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A tiny state with easy access to major cities — including Baltimore, New York, Philadelphia and Washington, D.C. — Delaware could be a perfect home base, and a Federal Housing Administration (FHA) mortgage could help you afford a home there. Delaware FHA loan limits range from $420,680 to $477,250 for 2022.

Delaware FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
NEW CASTLE$477,250$610,950$738,500$917,800$415,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) calculates FHA loan limits as a percentage of the Federal Housing Finance Agency (FHFA)’s conforming loan limits. FHA loan limits range from 65% to 150% of the conforming loan limit. The lowest limit — the FHA “floor” — applies to most of the country, while the FHA “ceiling” applies only to high-cost areas, based on the average home sales price in the counties over the last year.

How to qualify for an FHA loan in Delaware

FHA loans feature more lenient requirements than conventional loans.

  • Credit score: Homebuyers with at least a 580 credit score may be able to secure a loan with as little as 3.5% down. Those with scores of 500 to 579 may still qualify with a minimum 10% down payment.
  • Down payment: You may qualify for an FHA loan with as little as 3.5% to 10% of the property’s value as a down payment, depending on your credit score.
  • Loan amount: Your mortgage amount can’t be higher than the FHA loan limit for the county. If the house you want to buy is more expensive, you could make a larger down payment to cover the difference.
  • Debt-to-income (DTI) ratio: Your DTI ratio is one number that represents how much you spend on debt payments compared to how much you make. FHA loans typically require that your DTI is less than 43%, although some lenders may offer exceptions.
  • FHA home appraisal: A home appraisal is required to borrow an FHA loan.
  • Mortgage insurance: FHA loans require two types of mortgage insurance. The annual mortgage insurance premium (MIP) costs 0.45% to 1.05% of your loan amount and the upfront mortgage insurance premium (UFMIP) costs 1.75%. Both can be financed as part of the mortgage.

If you’re buying a home for the first time, make sure you check out Delaware’s first-time homebuyer programs.

Buying a multifamily property with an FHA loan

You could purchase a multifamily house with up to four separate living spaces using an FHA loan, as long as you’re living in one of the units. The same requirements apply, like getting an FHA home appraisal and having a healthy DTI ratio.

FHA lenders in Delaware

Here are five highly rated mortgage lenders that operate in Delaware. Click on their names to read a full review.

Lender nameLT ratingMinimum FHA credit score
BMO Harris Bank 8.5 / 10580
Lower Mortgage10 / 10580
Rocket Mortgage9.5 / 10580
Better Mortgage9.5 / 10620
AmeriSave Mortgage8 / 10600


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