Delaware mortgage and refinance rates for September 2026

As of Monday, September 28, 2026, current mortgage interest rates in Delaware are 7.27% for a 30-year fixed mortgage and 6.63% for a 15-year fixed mortgage. Mortgage rates in Delaware and elsewhere in the U.S. have held in a tight range for much of this year so far. With uncertainty around tariffs, inflation and future rate cuts by the Federal Reserve, it's difficult to predict where mortgage rates will go in the near term, but Bankrate's experts do not predict that rates will drop below the 5% mark before next year. 

If you bought your Delaware home a couple of years ago (when rates were near 8%), you might consider refinancing, since refinance rates have fallen significantly since then. Additionally, if you've been in your property for a long time, you might be in a good position to explore a cash-out refinance to access funds for goals such as home remodeling.

If you’re looking to get a mortgage in Delaware, consider these loan options:

• Delaware conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45%. If you make a down payment of less than 20%, you’ll need to pay for private mortgage insurance (PMI), as well.
• Delaware FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5% down payment. As with a conventional loan, if you put down less than 20% on an FHA loan, you’ll be on the hook for mortgage insurance.
• Delaware VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee.
• Delaware jumbo loans: If you need to borrow a large pile of cash to purchase a home in Fenwick Island or another high-priced waterfront spot in Delaware, you might need to explore jumbo loans. These loans exceed conforming loan limits and will require a larger down payment of at least 10%, along with good to excellent credit.

The Delaware State Housing Authority (DSHA) offers programs designed to help first-time homebuyers as well as current homeowners who might want to trade up. The agency’s options include below-market rate mortgages and down payment assistance programs. Here’s an overview:

• Smart Start: The DSHA offers this 30-year fixed-rate mortgage (with no down payment or closing cost assistance) for first-time and repeat homebuyers. To qualify, you’ll need at least a 620 credit score, and if your score is 659 or below, you’ll need to complete a housing counseling program. Purchase price and income limits vary by household size and location.
• First State Home Loan: Like Smart Start, this 30-year fixed-rate loan is available for first-time and repeat buyers. However, it also comes with 3% of the final loan total for a down payment and closing costs.
• Diamond in the Rough: DSHA's Diamond in the Rough program gives first-time buyers 5% for down payment and closing costs, although you must qualify for the FHA 203k Limited Program first.
• Delaware First-Time Homebuyer Tax Credit: Specifically for first-time homebuyers, this option allows participants to claim 35% of their annual mortgage interest as a special federal tax credit. The maximum credit allowed is $2,000 — a deduction that directly reduces your annual federal tax bill. There are program eligibility requirements, including household income and purchase price requirements. 

Additional Delaware mortgage resources