Kansas First-Time Home Buyer Programs of 2021

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By NerdWallet 

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As a Kansas resident and hopeful home buyer, you can tap a unique financial resource. Down payment and closing cost assistance may be available to you through the Kansas Housing Resources Corp.

And you won't have to sift through a bunch of bureaucracy: One program does all of the heavy lifting.

Also, national programs tailored to first-time home buyers can help you move from renting an apartment to owning a home.

Getting ready to buy a home? We’ll find you a highly rated lender in just a few minutes.

Enter your ZIP code to get started on a personalized lender match.

 

National first-time home buyer programs

These national programs offer deep resources for first-time home buyers, including low or zero down payments.

Conventional mortgage

Best for:

Low down payments, limited mortgage insurance premiums

What you need to know:

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down.

VA loans

Best for:

Military, low down payments

What you need to know:

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640.

FHA loans

Best for:

Low credit score, low down payments

What you need to know:

This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.

USDA loans

Best for:

Low down payments, rural

What you need to know:

A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards.

Kansas Housing highlights and eligibility requirements

Kansas Housing keeps things simple: It offers one assistance program. Here are the must-know details:

Highlights

  • Offers 15% or 20% of a home's purchase price in assistance.

  • Assistance is in the form of a forgivable loan.

  • Available to borrowers who meet income requirements and haven't owned a home within the past three years.

  • No minimum credit score requirement.

Eligibility

  • You must kick in at least 2% of the purchase price with your own money.

  • The amount of assistance depends on your household income.

  • Not available in Kansas City, Lawrence, Topeka or Wichita city limits or Johnson County.

Kansas Housing first-time home buyer loan programs

First Time Homebuyer Program

Best for:

Down payment assistance, closing cost assistance

What you need to know:

Provides a loan of 15% or 20% of a home's purchase price to help with your down payment and closing costs. You don't have to repay the loan — it is forgiven over time as long as you remain in the home. However, you do have to put up at least 2% of the sale price, and the amount of your assistance loan is based on your household income.

Summary: The 2021 Kansas first-time home buyer program

The First Time Homebuyer Program is the sole offering of Kansas Housing, yet the benefits are robust:

  • A forgivable loan for 15% or 20% of the home's purchase price.

  • Use the proceeds to reduce your closing costs or add to your down payment.

  • An income chart provides qualification details.

You will want to contact a participating lender to help with the paperwork and walk you through the details. It's a good idea to talk to more than one, because "credit overlays" — additional qualifying terms added by a lender — can vary.

Getting ready to buy a home? We’ll find you a highly rated lender in just a few minutes.

Enter your ZIP code to get started on a personalized lender match.

 

For full details on the first-time home buyer program, visit the Kansas Housing website.

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