Hi I am using repetier host with silcer on my davinci 1.0 and after hitting the home button the z setting ends up making the bed almost touching the belt. pic attached.  Not sure what setting to change to tell the z home to go further down? any ideas?

That is the correct home setting. As long as it stops and foes not grind it is fine. When the print starts it will move down to the desired offset before the Y or X moves.