Obtaining financing to purchase a first home is often an educational experience that gives first time home buyers a new perspective in homeownership. And with credit requirements becoming more stringent, many first-time home buyers are finding they cannot qualify for conventional loans or, in some cases, even FHA products. Thankfully, most states do provide a group of first time home buyer programs designed to get first time buyers into a new home. In Kansas, though the choices are few, there are some.
Kansas Housing Resources Corporation (KHRC)
The Kansas Housing Resources Corporation is a state entity and quasi-public corporation which operates as a subsidiary of the Kansas Development Finance Authority. Its mission is to enhance the communities of Kansas by facilitating affordable housing for all who need it. Their goal is achieved through first time home buyer’s assistance, mortgage relief assistance, and specific assistance directed towards seniors, low income families, and renters. Unfortunately the KHRC currently offers only one program providing assistance to first time home buyers.
First Time Home Buyers Program
The Kansas First Time Home Buyers program is one that provides down payment assistance to certain qualified buyers. If approved, borrowers can receive a secondary loan of up to 20% of their chosen home's purchase price, with the funds designated for use towards down payment and closing costs. Funds are awarded on a sliding scale depending on eligibility requirements and the applicant's income.
To be considered for the First Time Home Buyers program the applicant's income cannot exceed 80% of the median income in the area he intends to purchase. Furthermore, the transaction must represent the first home the buyer has purchased, and he or she must contribute a minimum of $500 towards the transaction. The program is applicable to buyers only outside of the following "entitlement areas": Lawrence, Kansas City, Johnson County, Topeka, and Wichita.
Other Home Buyer Programs in Kansas
Unfortunately, housing assistance programs in the state of Kansas are sparse. The First Time Home Buyers program is the only one currently listed as being active in the state. For new home buyers living in Kansas who don't qualify for this program, there may be others available at the county and local level from time to time. Often these localized programs are the result of HUD grants being given to the various states, who then turn around and administer them according to need.
If any of these alternative programs exist in your area, your real estate agent and mortgage lender should be aware of them. Kansas home buyers are encouraged to visit the HUD website regularly as well as the KHRC site. When other programs become available information will most certainly be provided through these two resources.
You may also want to check the local real estate listings in your city from time to time. Cities with an overabundance of vacant property often seize abandoned or tax-delinquent houses and resell them to new owners at a substantially reduced cost. These transactions sometimes come with low interest loans, down payment assistance, and rehabilitation grants. Just be aware that these local programs often come with residency requirements which may mean a commitment to live in the new home for at least 10 years.