FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in Delaware

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Delaware could be a perfect home base if you’re looking to live in a tiny state close to major cities like Philadelphia and Washington, D.C. With its lower down payment and credit score requirements, a Federal Housing Administration (FHA) mortgage could help you afford a home there. FHA loan limits in Delaware range from $472,030 to $529,000 for 2023.

Delaware FHA loan limits by county

County name One unit Two unit Three unit Four unit Median sale price
NEW CASTLE$529,000$677,200$818,600$1,017,300$460,000

How are FHA loan limits determined?

Every year the U.S. Department of Housing and Urban Development (HUD) adjusts the FHA loan limits in counties across the country based on 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, but you’ll still need to meet the minimum requirements to qualify:

  • Credit score and down payment: Homebuyers with at least a 580 credit score may be eligible for a 3.5% down FHA mortgage, while those with scores of 500 to 579 may still qualify with a minimum 10% down payment.
  • Debt-to-income (DTI) ratio: Your DTI ratio 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.
  • 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%. UFMIP is typically added to your loan amount, while MIP becomes part of your monthly payment.
  • FHA home appraisal: A home appraisal is required to borrow an FHA loan. FHA home appraisals have stricter guidelines than conventional home appraisals.
  • Occupancy. You must live in a home financed by an FHA mortgage for at least 12 months.

Buying a multifamily property with an FHA loan

FHA guidelines allow you to buy a multifamily house with up to four separate living spaces using an FHA loan, as long as you live in one of the units. You only need a minimum 3.5% down payment and may be able to use the income on the other rented units to qualify for the mortgage.

FHA lenders in Delaware

Lender nameLT ratingMinimum FHA credit score
Rocket Mortgage5 stars580
Flagstar Mortgage4 stars580
PenFed Mortgage3 stars620
Guild Mortgage3 stars540
Churchill Mortgage3 stars620


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