Unlike inland Sussex where new subdivisions appear every quarter, Rehoboth’s housing stock is essentially capped. The city’s 1.6 square miles and aggressive land-trust preservation mean only 12-20 buildable single-family lots trade hands in a given year. That scarcity creates a distinct pricing rhythm: values jump 8-12 % from March to June when DC-area families hunt summer rentals, plateau in September, and tick up again in January when retirees secure 1031-exchange proceeds. Condos in the Henlopen Acres high-rise average 42 days on market, while interior-townhomes west of Route 1 linger 90+ days, giving locals a brief negotiating window. Because list-to-sale ratios hover at 99.3 % during Memorial-Day-to-Labor-Day season, NMHL pre-underwrites files so buyers can waive financing contingencies and still keep earnest-money safe.

• Downtown Rehoboth: $700-$950 psf, walkable to boardwalk, mostly 2-bed condos with $350-$450 HOA fees.
• North Shores: Guard-gated, golf-course-front lots, $1.1-$2.5 M, HOA includes beach parking and private security.
• Rehoboth by the Sea: 1970s-1990s manufactured and stick-built cottages, $450-$650 K, no HOA, popular with first-time buyers using FHA.

Property taxes are reassessed at 100 % of market value every five years, but Sussex County caps annual increases at 15 %, protecting long-term owners from sticker shock. Flip activity is minimal—only 3 % of sales in 2023 were owned less than two years—so expect established comps, not inflated renovation profits, to anchor your appraisal.

With the conforming loan limit for Sussex County set at $766,550 in 2024, almost every detached home within a mile of the beach requires jumbo financing. NMHL’s Jumbo 90 % LTV product allows borrowers with 720+ FICO to put just 10 % down on purchases up to $1.2 million—crucial when preserving liquidity for renovations or furniture packages. Debt-to-income ratios can stretch to 43 % using 12-month future short-term-rental income averaged over two years of comparable seasonal data from AirDNA. If your primary residence is outside Delaware, we can exclude that mortgage payment from qualifying ratios when the new property generates positive cash flow under the DSCR method.

Buyers with recent credit events—short-sale 2019, 680 current score—can use our Non-Prime Platinum tier: 20 % down, 8.49 % fixed for 30 years, no PMI, and a 5-year prepay that matches the average hold period for Rehoboth second homes. Because Sussex County recording taxes are modest compared with Maryland or Pennsylvania, we often roll the 1.5 % state transfer tax into the loan amount rather than asking buyers to bring extra cash to closing.

Many buyers assume beach towns disqualify them from assistance; Sussex County’s median household income is $68,000, but program limits are based on the area median income (AMI), not the town’s affluence. The Delaware First-Time Homebuyer Tax Credit (Mortgage Credit Certificate) provides a federal tax credit equal to 35 % of annual mortgage interest, saving up to $2,000 every year for the life of the loan—huge on jumbo amounts. Combine that with Stepping Stones 2.0 ($15,000 forgivable after five years of occupancy) and you can effectively buy a $450,000 inland condo with 3.5 % down plus grants. Teachers and emergency responders qualify for Sussex County’s Workforce Housing grant—an extra $10,000 that can cover closing or reduce loan amount. NMHL overlays the USDA map west of Route 1; homes in unincorporated areas like Country Club Estates remain eligible for 100 % financing even though the mailing address reads Rehoboth Beach.

Despite million-dollar headlines, pockets of Rehoboth qualify for zero-down government loans. The Veterans Memorial Park corridor along Shuttle Road falls inside USDA eligible territory, so active-duty families at Dover AFB can purchase a 3-bed townhome in Rehoboth Shores for $0 down up to a $116,550 income cap. VA buyers can snag ocean-view condos in Dewey Beach (19971 ZIP) up to $766,550 with no money down—even when the property will be used primarily as a short-term rental. Funding fees are waived for 10 %-plus disabled veterans, and NMHL processes Certificates of Eligibility in 24 hours so offers compete with cash investors.

FHA 203(k) renovation loans are popular with buyers eyeing dated cottages in Pot-Nets or Edgewater House where $75,000 in hurricane-impact windows and LVP flooring can raise rents by $8,000 per summer. We close purchase-plus-renovation loans in 45 days—crucial when sellers want certainty before June 1 rental season.

Rehoboth’s economy runs on entrepreneurs—restaurateurs, wedding photographers, charter captains—so seasonal income is normal, not a red flag. NMHL’s Bank-Statement Premier program uses 12 or 24 months of business statements, deducting a flat 25 % expense factor instead of requiring Schedule Cs that show heavy write-offs. Average deposits of $12,500 monthly qualify you for a $550,000 loan at 7.75 % fixed with only 15 % down. We can also asset-deplete: divide $750,000 in retirement funds by 60 months to create $12,500 of monthly qualifying income—no job letter required, perfect for retired Philly police living at the beach year-round.

Keep your CPA’s comfort letter handy; Sussex County appraisers often request year-to-date P&L statements when comps are scarce. If you’re a real-estate investor with Schedule E losses, our non-QM Debt-Service-Coverage Ratio loan ignores personal income altogether—underwrite using 1.0× rent coverage and credit scores as low as 640.

We maintain a dedicated Beach Operations Desk staffed by loan officers who live in Lewes and surf dawn patrol before answering calls. That local presence means we know which appraisers understand the premium for ocean-block vs. ocean-side and can schedule inspections before Memorial Day weekend when most inspectors are booked solid. Our average closing in Sussex County is 32 days, and we underwrite government files in-house so conditional approvals don’t stall because an out-of-state DE underwriter misreads flood-zone requirements.

Clients gain free access to our RateReLock tool—if rates drop 0.25 % within 60 days of closing, we float you down at no charge, a perk big banks reserve only for million-dollar relationships. Add in grant coordination, realtor co-branding, and after-hours pre-approval letters, and it’s easy to see why local agents rank NMHL #1 among mortgage lenders in Rehoboth Beach year after year.

Ready to stop scrolling listings and start holding keys? Upload your last two bank statements and a driver’s license to our secure portal; most borrowers receive a same-day pre-approval letter and a side-by-side comparison of loan options so you can shop Dewey’s open houses this weekend with confidence.