$0 Down · No PMI · Veteran-Owned
VA Loans in Delaware
Delaware punches above its size for military families: Dover Air Force Base hosts the C-5 and C-17 airlift mission plus Air Mobility Command's largest aerial port, and the state's zero sales tax and low property taxes stretch every military paycheck. Roughly 70,000 veterans live in the First State, many drawn by beach-town retirement within an hour of Dover.
63K
Delaware Veterans
1
Military Installations
$0
Down Payment
$832,750
2026 Baseline Limit
Why Delaware
A VA team that knows Delaware’s military markets
From Dover and Smyrna up to Middletown and Wilmington's suburbs, Delaware price points sit near or below the national median — full VA entitlement covers essentially the entire market with $0 down.
Dover AFB anchors Kent County housing — Dover, Camden, Smyrna, and Magnolia absorb its airmen and the civilian workforce of the aerial port and mortuary affairs mission. Middletown's growth corridor serves commuters north toward Wilmington and south to the base.
Beyond the Loan
More Delaware benefits you earned
The VA loan is one piece of what Delaware owes its veterans. Here’s the rest of the stack — worth real money every year:
Income Tax
Pension exclusion
Delaware excludes a portion of pension income, including military retirement, from state income tax — and has no sales tax at all.
Vehicle
Veteran & DV plates
Veteran and disabled-veteran plates available through the DMV for qualifying veterans.
Education
Dependents' scholarship
Education benefits for children of certain deceased or MIA/POW Delaware veterans.
Recreation
State parks & licenses
Discounted state park passes and license accommodations for qualifying disabled veterans.
Benefit rules and amounts change with each legislative session — confirm current details with the Delaware Commission of Veterans Affairs. When you work with us, we walk through which of these apply to your purchase and your budget.
Official VA Data
Delaware VA lending, by the numbers
2,004
VA Loans Closed (FY2025)
$0.8B
VA Dollars Guaranteed (FY2025)
$384K
Average VA Loan
63,391
Veterans in DE
Delaware veterans closed 2,004 VA loans in fiscal year 2025 — 1,072 of them home purchases — and the VA paid $0.4 billion in disability compensation and pension to Delaware veterans in FY2024. Every veteran receiving that compensation is exempt from the VA funding fee.
Sources: VA Loan Guaranty loans-by-state report, FY2025 · VetPop2023 state projections (NCVAS) · VA Geographic Distribution of Expenditures, FY2024.
Bases We Serve
Military installations in Delaware
Every installation below anchors a housing market our team lends in — PCS moves, first purchases on BAH, and buy-then-rent strategies included.
2026 BAH Rates
Compare BAH across Delaware’s installations
BAH is set per housing area, not per state — and it counts as qualifying income on a VA loan. Here’s how Delaware’s duty stations compare at key pay grades.
| Installation | E-4 | E-5 | E-6 | E-7 | O-3 |
|---|---|---|---|---|---|
| Dover Air Force Base | $2,160 | $2,277 | $2,493 | $2,694 | $3,051 |
2026 monthly BAH, with dependents, from official DoD (DTMO) rate data. Click any installation for all 24 pay grades, without-dependents rates, and a payment-vs-BAH estimator for that housing area.
2026 Program Facts
What the VA loan gets you in Delaware
$0 Down Payment
Buy with no down payment on loans within your entitlement — the signature VA benefit.
No PMI
VA loans never charge monthly private mortgage insurance, keeping payments lower than FHA or low-down conventional.
Competitive Rates
The VA guaranty lets lenders price VA loans below comparable conventional rates for most borrowers.
Flexible Credit
The VA sets no minimum credit score — guidelines focus on residual income and the whole picture.
Limited Closing Costs
The VA restricts which fees veterans can be charged, and sellers may pay all of them plus concessions.
Reusable for Life
VA entitlement is a lifetime benefit — it can be restored and reused, and you can hold more than one VA loan at once.
VA loan vs. conventional in Delaware
| Feature | VA Loan | Conventional |
|---|---|---|
| Down payment | $0 required | 3–20% (20% to avoid PMI) |
| Monthly mortgage insurance | Never | Required under 20% down |
| Minimum credit score | None set by VA | Typically 620+ |
| Interest rates | Typically below conventional | Higher without large down payment |
| Upfront fee | Funding fee 2.15% first use (waived with disability rating) | None |
| Prepayment penalty | Never | Rare, but possible |
| Loan limit | None with full entitlement | $832,750 baseline (2026) |
| Assumable by a buyer | Yes — VA loans are assumable | Generally not |
2026 VA loan limits in Delaware
With full entitlement, the VA does not cap your loan amount — county loan limits only apply when you have reduced entitlement (an existing VA loan or a prior default). For reduced-entitlement borrowers, the 2026 baseline county limit is $832,750, and designated high-cost counties range up to $1,873,675.
The VA funding fee, plainly
- First use, under 5% down: 2.15%
- Subsequent use, under 5% down: 3.30%
- With 5% down: 1.50% · with 10% down: 1.25%
- Streamline refinance (IRRRL): 0.50%
Veterans receiving VA disability compensation at any rating are fully exempt from the funding fee, as are eligible surviving spouses and Purple Heart recipients on active duty.
Where We Lend
Delaware cities we serve
From base-gate communities to the metros veterans choose after service, these are the Delaware markets where our VA lending is most active.
- Dover~$345K
- Smyrna~$407K
- Camden~$413K
- Middletown~$541K
- Wilmington~$336K
- Newark~$372K
Typical home values: Zillow Home Value Index, 2026-06.
Straight Answers
Delaware VA loan questions, answered
Is there a VA loan limit in Delaware?
Not with full entitlement. With reduced entitlement, all three Delaware counties use the 2026 baseline limit of $832,750 — far above typical Dover-area prices.
Can I buy near Dover AFB with $0 down?
Yes — Dover, Camden, Smyrna, and Magnolia are standard VA markets with prices below the national median, well within typical BAH for mid-grade enlisted and officers.
Is Delaware good for military retirement?
It's one of the quieter bargains on the East Coast: no sales tax, low property taxes, a pension exclusion for military retirement income, and beach towns within an hour of Dover AFB.
Can I use a VA loan for a home near Rehoboth or Lewes?
Yes, as a primary residence — many Dover retirees buy in Sussex County beach communities. Second homes aren't VA-eligible, but a primary-residence move to the beach absolutely is.
How fast can a VA loan close in Delaware?
Comparable to conventional — typically 30 days or less with a responsive appraisal. Kent County's VA appraiser panel handles Dover volume routinely.
Ready When You Are
Start your Delaware VA loan with a team that’s worn the uniform
Get a clear pre-approval, honest numbers, and a VA process handled by people who understand PCS timelines and military life firsthand.