Bear, Glasgow and New Castle Home Loans: First-Time Buyer Transfer Tax Credits and DPA — Hen & Harbor
Updated October 2026
Along Route 40, buyers in Bear, Glasgow, New Castle and the Christiana area often need to solve two separate problems: qualifying for the monthly payment and assembling settlement funds. A transfer-tax credit and down payment assistance address different parts of that second problem, so Hen & Harbor keeps them separate from the start.
Calculate the transfer-tax savings first
Delaware’s realty transfer tax is 4.0% total, consisting of 2.5% state tax and 1.5% county or municipal tax. The ordinary split is 2.0% for the buyer and 2.0% for the seller, although the contract should identify each party’s obligation.
The Delaware First-Time Homebuyer Transfer Tax Credit reduces an eligible buyer’s state share by 0.75% on up to $400,000 of purchase price.
| Purchase price | Potential credit | Buyer transfer tax after credit |
|---|---|---|
| $300,000 | $2,250 | $3,750 |
| $400,000 | $3,000 | $5,000 |
These examples assume the ordinary buyer allocation and full credit eligibility. Above $400,000, the maximum credit remains $3,000. Verify eligibility through the Delaware Division of Revenue, then enter the result in our closing cost estimator.
Add assistance without confusing it with a grant
The Delaware State Housing Authority offers pathways including Welcome Home, Home Sweet Home and First-Time Homebuyer Down Payment Assistance. The first-time buyer assistance option provides a 3% to 5% interest-free second loan for eligible borrowers.
Interest-free does not mean repayment-free. Ask how the assistance amount is calculated, when repayment is triggered and whether the selected first mortgage can be combined with it. Delaware Diamonds may also be relevant for eligible healthcare workers, educators, first responders and state or municipal employees.
Compare the complete package: first-mortgage rate, mortgage insurance, second-loan terms and cash remaining after closing. Preserve room for moving expenses and initial repairs rather than committing every available dollar to settlement.
Keep the payment grounded in the property
The 2026 conforming limit is $832,750 in New Castle County. FHA buyers should use New Castle’s elevated metropolitan-area limit instead of assuming the national floor applies.
Countywide reassessment means the seller’s historical tax bill needs checking. Verify municipal boundaries, school taxes, association dues and current insurance pricing. Delaware’s relatively low annual property-tax escrows help only when the underlying estimate is accurate.
A Delaware-licensed attorney is required for closing. Use our monthly payment calculator to test the full payment before choosing how much assistance to request.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Bear, Glasgow and New Castle Home Loans: First Time Buyer Transfer Tax Credits and DPA — Compare Delaware state housing finance agency (HFA) and municipal down payment assistance options; verify household income limits, purchase-price caps, homebuyer education rules, and repayment or forgiveness terms.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- Delaware State Housing Authority — state housing finance and property tax authority.
- Delaware Division of Revenue — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.