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Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 6, 2026
Homebuyer Programs in Derby, KS (2026)
Derby is a fast-growing suburb of Wichita in southern Sedgwick County, anchored by McConnell Air Force Base, strong schools, and a popular Madison Avenue retail corridor. The median home price in Derby is approximately $315,000 — meaningfully higher than Wichita and the county average — and although the City of Derby itself does not fund a direct down payment assistance program for buyers, eligible first-time homebuyers can combine substantial help from state and regional sources. The KHRC First-Time Homebuyer Program offers a 0% interest forgivable second mortgage of 15-20% of the purchase price (up to $40,000) that is forgiven after 10 years of owner-occupancy. The Kansas Housing Assistance Program (KHAP), co-sponsored by Sedgwick County, layers on up to 4% in cash assistance for down payment and closing costs. Wichita Habitat for Humanity provides affordable zero-interest mortgages to selected households earning 35-80% AMI in Sedgwick County, including Derby. Combined with FHA, VA, and USDA loans (parts of southern Sedgwick County qualify as USDA-rural) plus the Kansas First-Time Home Buyer Savings Account tax deduction, Derby buyers can dramatically reduce out-of-pocket costs.
State Programs in Kansas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Kansas First-Time Home Buyer Savings Account | Tax Credit | State income tax deduction up to $3,000 individual / $6,000 joint per year (lifetime cap $24,000 / $48,000) | Yes | View → |
| Kansas Housing Assistance Program (KHAP) | Grant | Up to 4% cash assistance (3% option for buyers with 640-659 credit scores) | Yes | View → |
| KHRC First-Time Homebuyer Program | Forgivable Loan | 15-20% of purchase price (up to $40,000) | Yes | View → |
- Type:
- Tax Credit
- Amount:
- State income tax deduction up to $3,000 individual / $6,000 joint per year (lifetime cap $24,000 / $48,000)
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to 4% cash assistance (3% option for buyers with 640-659 credit scores)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- 15-20% of purchase price (up to $40,000)
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Wichita Habitat for Humanity Homeownership Program | Repayable Loan | Affordable mortgage on a Habitat-built home (no published dollar value of subsidy; mortgage is structured to be affordable for 35-80% AMI households) | Yes | View → |
- Type:
- Repayable Loan
- Amount:
- Affordable mortgage on a Habitat-built home (no published dollar value of subsidy; mortgage is structured to be affordable for 35-80% AMI households)
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Derby is in Sedgwick County, where the KHRC First-Time Homebuyer Program is available (the Wichita city-limits exclusion does not apply to Derby). KHAP is available statewide. Wichita Habitat for Humanity serves households earning 35-80% AMI in Sedgwick County.
Step 2: Complete homebuyer education. Most assistance programs require a HUD-approved homebuyer education certificate. Wichita Habitat for Humanity and area HUD-approved counseling agencies in Wichita provide qualifying courses that satisfy KHRC, KHAP, and Habitat requirements.
Step 3: Contact a local housing partner. Wichita Habitat for Humanity is located at 2220 N Opportunity Drive in Wichita and serves Derby; visit wichitahabitat.org for the homeownership application.
Step 4: Get pre-approved for a mortgage. Use the KHRC participating lender search to find a Wichita-area lender (most serve Derby) that can originate the KHRC First-Time Homebuyer second mortgage and KHAP cash assistance.
Step 5: Find a home within program limits. The KHRC program has Sedgwick County-specific purchase price limits updated annually (often around $209,000 in most Kansas counties); confirm with your lender. Derby's median home price of about $315,000 is above the typical state program cap, so buyers using KHRC will need to look at lower-priced homes within Derby or consider higher-cap programs.
Step 6: Submit your application. State assistance is funded year-round but reserved on a first-come, first-served basis through your participating lender.
Frequently Asked Questions
How much down payment assistance can I get in Derby, KS?+−
Can I use KHRC in Derby even though Wichita is excluded?+−
What is the maximum home price I can buy?+−
Do I have to be a first-time homebuyer?+−
What homebuyer education is required?+−
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