Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Kansas
KHRC First Time Homebuyer Program
The Kansas Housing Resources Corporation (KHRC) provides assistance to potential homebuyers through the First Time Homebuyer Program. The program helps to lower out-of-pocket costs associated with the mortgages with the down payment assistance for eligible applicants.
Available Assistance
Qualified applicants may receive assistance funds up to 15% and 20% depending on their income bracket through the KHRC First Time Homebuyer Program. This assistance is given as a soft loan, which can be forgiven over time. Then, you can use the funds to cover a portion or all of the down payment of your closing costs.
Eligibility Requirements
The KHRC First Time Homebuyer Program requires that applicants meet certain requirements. The applicants must be first-time homebuyers. Therefore, they should not have owned a house in the past three years. They must meet the income limits of the program, which vary depending on the size of the household and location. Additionally, all applicants must contribute a base investment of 2% of the property’s purchase price from their personal cash assets.
This program provides financial assistance to qualified applicants who are interested in purchasing a home, but cannot afford the down payment, closing costs and prepaid items to gain homeownership. These costs can be significant, and people might find themselves stuck in a renters’ trap if they are unable to pay them.
This programme is similar to the First-Time Homebuyer Assistance Programs in Iowa.
Kansas Housing Assistance Program
Shawnee and Sedgwick Counties co-sponsored the Kansas Housing Assistance Program to help first-time homebuyers pay the initial costs of a mortgage transaction.
Available Assistance
The Kansas Housing Assistance Program provides cash assistance up to 4% to first-time homebuyers for closing costs and down payments, all over the state. Additionally, they offer a fixed-rate, high-loan to-value mortgages with a 30-year term for FHA (loan-to-value 96.5%), VA (loan-to-value 100%), Rural Development (loan-to-value 100%), and Conventional (loan-to-value 97%).
Eligibility Requirements
The Kansas Housing Assistance Program applicants must have a minimum credit score of 660 to qualify. However, those with credit scores between 659 and 640 can also apply for 3% borrower assistance. Applicants need to be first-time homebuyers, except if the property is located in a Federally Designated Targeted Area*. Plus, borrowers must have an income that is below the program’s income limits (shown below).
Maximum Income for a Household of 1-2 People:
- Kansas City MSA – $72,800
(Leavenworth, Wyandotte, Johnson, Linn & Miami) - Lawrence MSA – $74,700
(Douglas) - All Other Areas – $66,700
Maximum Income for a 3+ Person Household:
- Kansas City MSA – $83,720
(Leavenworth, Wyandotte, Johnson, Linn & Miami) - Lawrence MSA – $85,905
(Douglas) - All Other Areas – $76,705
Property Guidelines
The Kansas Housing Assistance Program allows you to purchase single-family detached houses, duplexes (provided that one owner occupies it), condominiums, and townhomes. Then, the location determines the maximum purchase price limit (listed below) for all homes.
Maximum Purchase Price on New and Existing Homes (non-target areas):
- Kansas City MSA – $265,609
(Leavenworth, Wyandotte, Johnson, Linn & Miami) - All Other Areas – $258,690
*More that 90% of the State are located in non-target areas.
Kansas First-Time Homebuyers
Residents of the state of Kansas who are first-time homebuyers can choose from a variety of options when shopping for loans. Therefore, it is important to understand the different mortgage options.
FHA Loans
The Federal Housing Administration insures FHA loans and protects lenders against financial risk. The loans go hand in hand with a low down payment requirement of 3.5%. Therefore, this is an attractive option for young, first-time homebuyers who haven’t had a lot of time to save for a hefty down payment or establish a high credit score.
Click the link to APPLY TODAY.
Conventional Mortgage
Conventional loans are mortgages that are not guaranteed by the government (such as FHA). Therefore, these mortgages may have fixed or adjustable rates, and typically require a downpayment of 20% or more. Conventional loans can also conform to Freddie Mac and Fannie Mae guidelines. This also makes them “conforming” loans, so that can be backed by either agency.
VA Loans
VA Home Loans are accessible through or funded by the Veterans Affairs Department. These are available for veterans, eligible spouses, and service members. Furthermore, these loans usually have a low interest rate, and are available to all qualified borrowers without money down.
Click the link to APPLY TODAY.
USDA Loans
The United States Department of Agriculture’s (USDA) Rural Department offers USDA-backed mortgages to build healthy and sustainable rural communities. These home loans are for low- and moderate-income residents to get safe and affordable housing.
Click the link to APPLY TODAY.
Are you interested in the First-Time Homebuyer Assistance Programs in Kentucky?
