See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 5, 2026
Homebuyer Programs in Salem, NH (2026)
Salem is a town in Rockingham County in southern New Hampshire, bordering Massachusetts and offering easy access to both Boston and Manchester. With a median home price around $570,000, Salem is one of the higher-cost markets in the state, making down payment assistance especially valuable. The town offers its own First-Time Homebuyer Down Payment Assistance Program providing up to $7,500 in zero-interest deferred loans. Buyers can also access New Hampshire Housing state programs including up to $15,000 in forgivable assistance through Home Flex Plus or Home Preferred Plus, $10,000 through the 1st Gen Home NH program for first-generation buyers, up to $2,000 per year in tax credits through Home Start MCC, and a $3,000 closing cost credit through the Community Heroes Initiative for healthcare workers, educators, and first responders. Habitat for Humanity Greater Nashua Manchester also builds affordable homes in the southern NH region. By stacking the Salem FTHB program with state programs, eligible buyers could access over $25,000 in total assistance.
City Programs in Salem
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Salem FTHB Down Payment Assistance Program | Zero-Interest Loan | Up to $7,500 (matches down payment up to $6,500 plus $1,000 bonus for completing counseling) | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Up to $7,500 (matches down payment up to $6,500 plus $1,000 bonus for completing counseling)
- First-time only:
- Yes
State Programs in New Hampshire
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 1st Gen Home NH | Deferred Loan | $10,000 | Yes | View → |
| NH Housing Community Heroes Initiative | Grant | $3,000 closing cost credit | Yes | View → |
| NH Housing First and First Plus | Deferred Loan | Up to $15,000 ($5,000, $10,000, or $15,000) | Yes | View → |
| NH Housing Home Flex Plus with Cash Assistance | Forgivable Loan | Up to $15,000 ($5,000, $10,000, or $15,000) | No | View → |
| NH Housing Home Preferred Plus with Cash Assistance | Forgivable Loan | Up to $15,000 ($5,000, $10,000, or $15,000) | No | View → |
| NH Housing Home Start Homebuyer Tax Credit (MCC) | Grant | Up to $2,000 per year in federal tax credits | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- $10,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $3,000 closing cost credit
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to $15,000 ($5,000, $10,000, or $15,000)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 ($5,000, $10,000, or $15,000)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 ($5,000, $10,000, or $15,000)
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $2,000 per year in federal tax credits
- 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 |
|---|---|---|---|---|
| Habitat for Humanity Greater Nashua Manchester | Zero-Interest Loan | Affordable home purchase with 0% interest mortgage | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with 0% interest mortgage
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Salem FTHB program has income limits ranging from $70,750 for a one-person household to $117,250 for a six-person household. NH Housing state programs have separate income limits up to $176,200 depending on the program.
Step 2: Complete homebuyer education. The Salem FTHB program requires a CHAPA-certified homebuyer counseling course, which also qualifies you for the additional $1,000 bonus (bringing total assistance to $7,500). NH Housing programs require a HUD-approved course through HOMEteam. Contact HOMEteam at (866) 701-9097 to register.
Step 3: Contact the City of Salem Community Development office about the FTHB program. They will walk you through the application process and confirm current funding availability and income limits.
Step 4: Connect with an NH Housing approved lender. Your lender can help you access state programs like Home Flex Plus ($15,000) alongside the Salem FTHB loan. Contact NH Housing at (603) 472-8623 to find an approved lender near Salem.
Step 5: Get pre-approved for a mortgage. Ask your lender about stacking the Salem FTHB program with NH Housing assistance and the Home Start tax credit. If you work in healthcare, education, law enforcement, or emergency services, ask about the Community Heroes $3,000 closing cost credit.
Step 6: Find a home and submit your application. Search for a home in Salem that will be your primary residence. Once you have an accepted offer, your lender and the City of Salem will process the assistance applications alongside your mortgage.
Frequently Asked Questions
How much down payment assistance can I get in Salem, NH?+−
Do I have to be a first-time homebuyer to qualify?+−
What are the income limits for the Salem FTHB program?+−
What homebuyer education is required?+−
How does the Salem FTHB loan repayment work?+−
Can healthcare workers and teachers get extra assistance in Salem?+−
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