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Homebuyer Programs in Derry, NH (2026)

Last updated April 5, 2026 | Population: 34,317 | Median home price: $425,000 | Est. closing costs: $8,500 - $13,000

Skyline of Derry, NH

Derry is a growing town in Rockingham County in southern New Hampshire, conveniently located along the Interstate 93 corridor between Manchester and the Massachusetts border. With a median home price around $425,000, Derry does not currently offer its own town-funded down payment assistance, but buyers here can take advantage of several strong state and federal programs. New Hampshire Housing provides up to $15,000 in forgivable cash assistance through the Home Flex Plus and Home Preferred Plus programs, and the First and First Plus bond program offers rate-advantaged mortgages with up to $15,000 in deferred assistance. First-generation homebuyers may qualify for an additional $10,000 through the 1st Gen Home NH pilot program. The Home Start Homebuyer Tax Credit can save qualifying buyers up to $2,000 per year in federal taxes. Habitat for Humanity Greater Nashua Manchester also serves the Derry area with affordable homeownership opportunities. By combining state programs, buyers in Derry could stack over $15,000 in down payment help plus ongoing annual tax savings.

Top Homebuyer Programs in Derry

FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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
Habitat for Humanity Greater Nashua Manchester
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with 0% interest mortgage
First-time only:
No
1st Gen Home NH
Type:
Deferred Loan
Amount:
$10,000
First-time only:
Yes
NH Housing Community Heroes Initiative
Type:
Grant
Amount:
$3,000 closing cost credit
First-time only:
Yes
NH Housing First and First Plus
Type:
Deferred Loan
Amount:
Up to $15,000 ($5,000, $10,000, or $15,000)
First-time only:
Yes
NH Housing Home Flex Plus with Cash Assistance
Type:
Forgivable Loan
Amount:
Up to $15,000 ($5,000, $10,000, or $15,000)
First-time only:
No
NH Housing Home Preferred Plus with Cash Assistance
Type:
Forgivable Loan
Amount:
Up to $15,000 ($5,000, $10,000, or $15,000)
First-time only:
No
NH Housing Home Start Homebuyer Tax Credit (MCC)
Type:
Grant
Amount:
Up to $2,000 per year in federal tax credits
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. NH Housing programs generally allow household incomes up to $176,200. Specific income and purchase price limits vary by municipality. Contact an NH Housing Approved Lender to verify the current limits for Derry.

  2. Step 2:

    Complete homebuyer education. Homebuyer education is required for NH Housing cash assistance and the Home Start tax credit. Courses are available through HOMEteam (866-701-9097), a collaborative program between NeighborWorks Southern New Hampshire, CATCH Neighborhood Housing, and Lakes Region Community Developers.

  3. Step 3:

    Contact an NH Housing Approved Lender. They will help determine which NH Housing mortgage product fits best

  4. Step 4:

    Ask about the 1st Gen Home NH program. If neither you nor your parents have ever owned a home, you may qualify for an additional $10,000 in assistance through this pilot program. Availability is limited, so ask your lender early.

  5. Step 5:

    Get pre-approved and explore the Home Start tax credit. Your lender can also help you reserve the Home Start Homebuyer Tax Credit (MCC) for up to $2,000 per year in federal tax savings.

  6. Step 6:

    Find a home in Derry. The property must be a single-family primary residence in New Hampshire. Work with your real estate agent to find a home within your budget and program requirements. You must contribute a minimum of 1% of the purchase price from your own funds if receiving cash assistance.

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