First-Time Homebuyers
First-Time Homebuyer Loans in Delaware and Pennsylvania
First-time buyer is a status, not a loan product. The status is what unlocks assistance money, and the loan underneath it can be conventional, FHA, USDA, or VA.
Here is what most first-time buyers get wrong. They go looking for a first-time buyer mortgage as if it were a single product with its own rate sheet. It is not. Your first-time status is an eligibility flag that opens the door to assistance: state agency down payment funds, closing cost grants, forgivable second liens, and reduced mortgage insurance pricing on certain conventional programs. Underneath the assistance sits an ordinary loan, usually FHA or a low down payment conventional. The work is in sequencing. Get preapproved first so the assistance program can be layered onto a real approval, complete any required homebuyer education course early, and make sure gift funds land in your account with a clean paper trail. Delaware and Pennsylvania both run agency programs whose funding pools open and close during the year, so timing genuinely affects what you can claim.
Who it's for
- Buyers who have not owned a principal residence in the last three years, which is the standard program definition
- Credit from roughly 580 on the FHA side and 620 and up for most conventional and assistance pairings
- Down payments as low as 3% conventional, 3.5% FHA, or nothing at all when USDA or VA applies
- Household income under the assistance program cap, which is separate from your qualifying ratios
- Buyers who can complete a HUD approved homebuyer education course before closing
Why choose this loan type
- Assistance money can cover the down payment, the closing costs, or both, which is often the difference between renting another year and closing
- Forgivable second liens carry no monthly payment and drop off after a set occupancy period
- Reduced mortgage insurance factors on certain first-time conventional programs lower the payment for the entire time PMI is in force
- The catch worth knowing up front: assistance adds a second underwriting review and can extend your closing timeline by a week or two
Get your first-time buyer plan
Tell us where you are in the process and we will map what you qualify for, how much you actually need down, and which assistance programs you can stack. Free, and no credit pull to start.
Start as a first-time buyer
Six quick fields. No credit pull.
We use your info only to prepare your options. No spam.
Frequently asked
I owned a house years ago. Am I still a first-time buyer?+
Very possibly. Most first-time buyer programs define the term as not having owned a principal residence in the previous three years, so prior ownership further back does not disqualify you. Certain targeted areas waive the test altogether.
What programs help first time home buyers in Delaware?+
Delaware buyers can combine an FHA, conventional 3% down, USDA, or VA loan with state agency down payment and closing cost assistance. Eligibility depends on household income, the county, and completing a homebuyer education course.
How much do I need to put down as a first time buyer in Pennsylvania?+
Often far less than people expect. Conventional programs start at 3% down, FHA at 3.5%, and USDA and VA can be zero down when you qualify. Assistance funds can cover part or all of that down payment.
What credit score do first time home buyers need?+
Roughly 580 and up opens FHA financing, and 620 and up covers most conventional and assistance pairings. If you are below that today, we map out exactly what to fix and how long it should take.
Is down payment assistance a grant or a second loan?+
Both exist, and the difference matters. Grants never have to be repaid. Forgivable seconds disappear after you occupy the home for a set number of years. Repayable seconds are real debt with a real payment that counts in your ratios. Always ask which one you are being offered.
How early should I get preapproved as a first-time buyer?+
Two to three months before you plan to write offers. That leaves time to correct a credit reporting error, season gift funds in your account, and pick up the homebuyer education certificate several assistance programs require before closing.
How long does the process take from first call to keys?+
Preapproval usually takes about a day once we have income and asset documents. From an accepted offer, most first time purchases close in 30 to 45 days, a little longer when assistance funds are layered in.
Start with a preapproval
A real preapproval takes about a day once we have income and asset documents. From there we map which assistance programs you fit.
Related loan programs
- FHA loans, the most common base loan for first-time buyers
Lower credit thresholds and 3.5% down make FHA the loan most assistance programs sit on top of.
- USDA loans if your target address is rural eligible
Nothing down beats assistance money, so we check the USDA map before anything else.
- Conventional 3% down for stronger credit files
If your score is high, conventional PMI can be cancelled later while FHA insurance usually cannot.
Where we lend
Delaware and Pennsylvania are home base. Beyond that, we work with borrowers across the states below. These loans are available throughout our full lending footprint.
- Delaware
- Pennsylvania
- Alaska
- Alabama
- Arkansas
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Hawaii
- Iowa
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Maine
- Missouri
- Mississippi
- Montana
- North Carolina
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- Ohio
- Oklahoma
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- West Virginia
- Wyoming
Contact
Talk to Our Team Directly
No call centers, no runaround. Reach out and get real answers on what you qualify for before you fall in love with a house.
Phone
302-600-3197Email
info@orangemtg.comHours
Mon-Fri 9am-6pm · Sat by appointment
Office
1301 N Harrison St, Suite 104
Wilmington, DE 19806Serving Delaware, Pennsylvania, and 37 more states
Send us a message
We usually reply within one business day.
By submitting, you agree to be contacted about your request. No spam.