April 13, 2021

MP Now News

Mortgage News

Kansas First-Time Homebuyer Assistance Programs

When you rent in Kansas you are likely to have a relatively low cost of living compared to the rest of the US. You might be surprised, however, to find that the state’s average home sales price rose to over $ 240,000 in early 2021 – the increase is more than 14 percent from 2020, according to the Kansas Association of Realtors.

There is no need to feel overwhelmed by this price tag, however. Kansas Housing Resources Corporation (KHRC), the state’s premier housing agency, is offering Advance payment assistance that could help you plant roots in the state inexpensively.

Kansas Down Payment Assistance

KHRC program for first-time buyers

KHRC has a first-time deposit support program called the First-Time Homebuyer Program (this is not a creativity competition, after all). The program aims to solve one of the greatest challenges of Become a homeowner: enough money for a deposit and Closing costs.

With the help of KHRC, a second loan with no monthly payments, you can cover between 15 and 20 percent of the home purchase price. Your income will determine what amount you qualify for:

  • 20 percent – If your household income is 50 percent or less of the median area income in which you are buying, you may qualify for a loan for 20 percent of the purchase price.
  • 15 percent – If your household income is between 50 and 80 percent of the area median income, you may qualify for a loan for 15 percent of the purchase price.

There are many incentives to stay in the house that you are buying because if you live there for 10 years the loan will be completely paid off.

There are also other requirements:

  • No minimum score, but you must be approved for a 30 year conventional loan, FHA, VA, or USDA loan for at least the first 80 percent of the home purchase price
  • You must contribute at least 2 percent of your own money towards the purchase
  • Your annual income cannot exceed 80 percent of the area median income where to buy
  • The home you buy cannot exceed the maximum purchase price amounts, which vary based on county

There is one notable exception to this program: if you are buying a home in Topeka, Wichita, Lawrence, Kansas City, or Johnson County, you must look for other options. KHRC support is only available to buyers outside of these areas.

Local homebuyer assistance programs

Depending on where you plan to buy, you may find other utilities that can help make your first home purchase more affordable.

For example, as one of the largest cities in Kansas, Topeka could be on your shortlist. In that case, it’s worth considering the Topeka Opportunity to Own (TOTO) program, which grants first-time buyers up to $ 30,000 for home repairs under certain conditions:

  • A minimum deposit of $ 1,000
  • A maximum purchase price of $ 75,000
  • Eight hour training courses for buyers and housekeepers
  • Income less than 80 percent of the median area income ($ 62,150 for a family of four)

Help is also available in Leavenworth as the city goes to great lengths to attract first-time buyers with more than half of their residential properties being rentals. If you meet the income limits, you may be eligible for up to $ 8,000 in grant finance for your home purchase. To keep the money free and clear, all you need to do is stay home for at least five years.

Wichita’s HOMEownership 80 program is another option that allows you to secure a loan for your down payment and closing costs. Half of the loan can be granted if you stay home for a specified period of time (five years for loans under $ 15,000 and 10 years for loans over $ 15,000). You have to meet some important requirements:

  • Contribute at least $ 1,000 to purchase
  • Have an annual income below certain limits ($ 55,500 for a family of four)
  • Complete a homebuyer education course
  • The house must cost $ 95,500 or less

Other first-time buyer loan programs

In addition to checking out the state and local options for home purchase assistance, check out Bankrate’s guide too Loans and Programs for First Time Buyers to see what you can qualify for at the national level.

For more home ownership programs in Kansas, including by city, see HUD.gov.

Getting started

Before you apply for a loan to buy your first home, do a comparison Mortgage rates to get a good feel for what banks, credit unions, and other types of mortgage lenders are charging in Kansas. Also, look at your credit and financial situation while you deal with lenders: Check your credit score So you have an idea of ​​how you are acting as a borrower and you are taking steps to improve it if necessary.

Learn more: