Kansas First-Time Home Buyer Programs And Loans To Know

Stepping into the realm of homeownership for the first time can feel like diving into a world of possibilities and challenges. Kansas offers several programs and loans tailored to support first-time buyers on this exciting journey. From state-specific incentives to federal assistance, knowing the landscape as a first-time home buyer in Kansas is key. This article is your roadmap, highlighting the essential programs and loans available, so you can confidently navigate the path to owning your first home.

Kansas Home Buyer Statistics

Understanding the current real estate landscape is crucial for prospective buyers. Here are key Kansas home buyer statistics to provide insight into the market trends and conditions you might encounter:

• Median home sale price: $145,800
• Average down payment: Zero down payment loans are accessible through USDA and VA loan programs. For FHA loans, the minimum down payment required is 3.5%, while conventional loans require a minimum down payment of 3%.
• Average credit score: 721 average credit score
• Median household income: $69,747

First-Time Home Buyer In Kansas Requirements

In Kansas, a first-time home buyer is generally defined as an individual who has not owned a home in the past 3 years. This includes those who may have previously owned a home but have since rented or lived elsewhere for at least 3 years. Additionally, certain programs may extend this definition to include single parents or displaced homemakers who have only owned a home with a former spouse. Understanding these qualifications is essential for accessing various state and federal assistance programs designed to support first-time buyers.

First-Time Home Buyer Grants And Programs In Kansas

Exploring the available resources can significantly ease the home buying process. Here is an overview of the key grants and programs designed to assist first-time home buyers in Kansas.

Kansas Housing Resources Corporation First-Time Home Buyer Program

The Kansas Housing Resources Corporation (KHRC) has multiple home buyer programs worth exploring. Among these is their first-time home buyer program, which offers a 0% interest loan covering up to 20% of the home's purchase price. If the home buyer stays in the home for 10 years, the loan is forgiven, making it an attractive option for those looking to purchase their first home in Kansas.

To qualify, the home buyer must:

• Be a first-time home buyer.
• Purchase a home located in Kansas but not in Topeka, Lawrence, Wichita, Kansas City or Johnson County.
• Have income at or below 80% of the county median income.
• Qualify for a mortgage with an approved lender.
• Invest 2% but no more than 10% of the sale price from their funds.
• Property must pass an inspection.

Kansas Down Payment Assistance Program

The Kansas Down Payment Assistance Program is quite beneficial for home buyers. It offers down payment assistance through a grant, along with a 30-year fixed mortgage, making it easier for individuals to afford their dream homes.

To qualify, the home buyer must:

• Have a credit score of at least 640.
• Have income below the limit.
• Be purchasing a single-family detached home, duplex (provided one unit is owner occupied), condominium, townhome or manufactured housing.
• The home must have a purchase price under $766,550.

Homeownership Set-Aside Program

The Homeownership Set-Aside Program is designed to support first-time home buyers in multiple ways. It offers assistance for down payments, closing costs and repairs, all in the form of a grant. Notably, this grant is forgiven if the homebuyer continues to reside in the home for at least five years, making it a valuable resource for those entering the housing market in Kansas.

To qualify, the home buyer must:

• Be buying a home in Kansas, Colorado, Nebraska or Oklahoma.
• Earn at or below 80% of the area median income.
• Qualify for a mortgage with FHLBank.

Topeka Opportunity To Own Program

TOTO, short for Topeka Opportunity to Own, is a program tailored to assist Topeka residents in achieving homeownership through a comprehensive approach. The city of Topeka offers generous support, including up to $5,000 for down payment assistance and up to $30,000 for home repairs. Capitol Federal steps in to provide financing for the home purchase, making it a well-rounded initiative for those looking to own a home in Topeka.

To qualify, the home buyer must:

• Make a $500 minimum down payment.
• Purchase anywhere in the city of Topeka.
• Sales price cannot go over $75,000.
• Cannot own real estate at the time of closing.
• Meet credit readiness and approvals.
• Verify affordability.
• Attend 6 hours of home buyer education.
• Attend 2 hours of home maintenance education.

Leavenworth CDBG Homeownership Program

The Home Ownership Program in Leavenworth, overseen by the city government, is powered by HUD Community Development Block Grant (CDBG) funding. These funds are federal and come from the Department of Housing & Urban Development (HUD), as Leavenworth is an entitlement city. The program's goal is clear: Aiding low- and moderate-income individuals in purchasing homes within Leavenworth's city limits. By doing so, it not only makes home ownership achievable but also promotes the sustainability of safe and healthy living environments.

To qualify:

• The home must be within the incorporated boundaries of the city of Leavenworth.
• The applicant must meet current HUD income limits guidelines set by HUD for low/moderate income.
• All members that will be living in the home are included in qualifying income limits. Documentation must be provided.
• The applicant cannot have owned a home for the past 5 years.
• The applicant must be creditworthy and otherwise able to purchase and finance a home, therefore, the applicant must be preapproved for the purchase of a home by a bank or mortgage company with a fixed-rate loan.
• Persons or families who have previously received CDBG funds are not eligible for the Home Ownership Program.
• In all cases, the applicant is required to provide from their funds one-half (½) of the required down payment for the mortgage program being used.
• At closing, applicants must sign a 5-year lien indicating the home will not be sold, refinanced, title changed or rented out for the duration of the lien.
• The applicant must have a licensed buying agent (or REALTOR^®). The REALTOR^® and lender must be able to abide by the Processing & Underwriting Guidelines set by the program.
• The applicant must complete a HUD-approved housing education course and provide proof.

First-Time Home Buyer Loans In Kansas

There are numerous first-time home buyer loans available across the country, including in Kansas. These loans are specifically tailored to assist new home buyers in their journey toward homeownership.

• Conventional loans: Conventional loans are essentially mortgage loans that lack government backing or insurance, setting them apart from FHA, VA or USDA loans. Generally, conventional loans require slightly higher credit scores and down payments, albeit they also offer more leeway concerning loan amounts and property types, and may have lower closing costs and fees. Interest rates for conventional loans can fluctuate based on market dynamics and the borrower's financial standing.
• FHA loans: FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are designed to make homeownership more accessible for individuals with lower credit scores and smaller down payments. FHA loans often have competitive interest rates and more lenient qualification requirements compared to conventional loans.
• VA loans: A top benefit of military service available to eligible veterans, active-duty service members and qualified surviving spouses, VA loans are backed by the Department of Veterans Affairs, offering no down payment requirements and competitive interest rates. VA loans also have flexible credit requirements, making them an attractive option for qualified military personnel and their families.
• USDA loans: Backed by the U.S. Department of Agriculture, USDA are tailored to assist individuals and families with moderate incomes in buying homes in eligible rural areas. These loans are notable for their zero down payment requirement and lower mortgage insurance costs, making them particularly beneficial for buyers looking for affordable options in rural communities. Eligibility for USDA loans is based on factors such as income level, location of the property and household size.

FAQs: Kansas First-Time Home Buyer

Whether you're navigating the process for the first time or seeking clarity on specific aspects of home buying in Kansas, these FAQs will provide valuable insights and guidance.

What credit score is needed to buy a house in Kansas?

In Kansas, a credit score of at least 620 is generally required to qualify for a conventional mortgage. However, FHA loans may be available to borrowers with credit scores as low as 580.

What is the average down payment on a house for a first-time buyer in Kansas?

The average down payment for a first-time home buyer in Kansas generally ranges from 6% – 7% of the property's purchase price. However, certain programs may permit down payments as low as 3% for those who qualify.

Does Kansas have a first-time home buyer tax credit?

Kansas does not currently offer a statewide first-time home buyer tax credit. However, buyers may be eligible for federal programs or other incentives through local or national organizations.

The Bottom Line

Kansas offers a wealth of opportunities for homebuyers, with numerous assistance programs aimed at facilitating the home buying journey. If you're eager to make a move, now is the perfect time to kick-start your application process and take advantage of these resources. Explore the available programs, determine your eligibility and begin the exciting journey toward homeownership in Kansas today.