Down Payment Assistance Programs for First-Time Homebuyers in Kansas

Kansas offers a unique blend of its picturesque landscapes, vibrant cities, and rich history. Dubbed “The Sunflower State,” it hosts major attractions such as the Wizard of Oz Museum, and the Tallgrass Prairie National Preserve. The lively arts scene in Lawrence makes it a popular destination spot.

Kansas faces many challenges but the housing crisis is a formidable one especially when the median home price has climbed up to $290,600, making it difficult for first-time homebuyers to afford homes amid the rising prices and limited inventory.

To address the issues, the state of Kansas along with many organizations that have off down payment assistance programs are providing relief via loans and grants, making homeownership accessible for eligible citizens.

Looking for Assistance in a Specific Part of Kansas?

Do you want to buy a home or property in Kansas but are worried about the down payment and closing costs? Well, you are not alone as many people are finding it difficult to afford. Here is an in-depth look into some payment assistance programs available throughout the state.

Down Payment Assistance in Kansas

Kansas is currently experiencing a significant housing crisis with nearly half of renters having to spend more than 30% of their income on housing costs. This is why the Kansas Housing Resources Corporation aimed to help citizens by providing coverage for down payments and closing costs. Here is a comprehensive overview of some of the financial assistance programs:

Kansas Housing First-Time Homebuyer Program

The Kansas Housing First-Time Homebuyer initiative provides essential assistance to eligible first-time homebuyers in the state. The loan gets forgiven if the homeowner remains in the property for 10 years

Fundamentals

Assistance Type: Interest-free loan

Sponsor: Kansas Housing Resources Corporation

Assistance Amount: $40,000 (at maximum)

Eligibility Requirements

• Applicants must have a First-time homebuyer status, meaning they have not purchased a house or made its primary residents in the past three years unless they are a displaced homemaker or a single parent
• The applicant must have a household income must be at or below 80% of the area median income.
• The applicant has to contribute 1% to 10% of the home’s purchase price from their own funds.
• The purchased property should not be located in Johnson County, Kansas City, Lawrence, Topeka, or Wichita, because these localities have homebuyer assistance programs of their own.

Federal Home Loan Bank of Topeka Homeownership Set-Aside Program

The Federal Home Loan Bank Topeka Homeownership Set-Aside Program (HSP) is designed to assist first-time homebuyers in achieving homeownership through grants which are forgiven provided the homeowner resides in the purchased property for five years.

Fundamentals

• Assistance Type: Forgivable grant
• Sponsor: Federal Home Loan Bank of Topeka (FHLBank Topeka)
• Assistance Amount: Between $2,500 and $15,000

Eligibility Requirements

• Borrowers’ household income must be 80% or less of the area median income (AMI).
• The applications seeking grants for purchased properties in Nebraska, Oklahoma, Kansas, or Colorado will not be entertained.
• Applicants should complete a homebuyer education course from an approved provider.
• Homebuyers are required to reside in the purchased home for at least five years.
• The deadline for submitting your application is  November 29, 2024.

Kansas Down Payment Assistance Program FAQs

Can the grant acquired through the FHLBank Topeka Homeownership Set-Aside Program be forgiven?

Yes, the grant will be forgiven if the homeowner remains in the property for a minimum of five years. The homebuyers may be required to repay the grant they sell or refinance before this period.

Are there any credit scores required to avail of assistance through the Kansas Housing First-Time Homebuyer Program?

There is no minimum credit score requirement to apply for the program. However, applicants must be approved for a mortgage from a participating KHRC lender.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.