First-Time Homebuyer Programs in Kansas

The down payment on a new home often presents the biggest hurdle for first-time homebuyers. In Kansas, with an average home value of $228,299, a down payment of $45,660 is required to avoid private mortgage insurance.

Fortunately, first-time homebuyer programs in Kansas can help you achieve homeownership. There are also mortgages that allow first-time homebuyers to put less down on a home, but these usually have income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

Kansas offers grants and loans to assist first-time homebuyers in covering down payment and closing costs. We've compiled the first-time homebuyer programs offered by the Kansas Housing Resources Corporation (KHRC) to help you find the best option for your particular needs and situation.

The Kansas First Time Home Buyer (FTHB) Program offers assistance to income-eligible buyers through a forgivable soft second mortgage. The program provides up to $40,000 in assistance for down payments and closing costs. Those earning less than 50% of the area median income can receive up to 20% of the home’s purchase price, while those earning between 51% and 80% of the median income are eligible for up to 15%.

The assistance is structured in two parts: half is forgiven over five or ten years, depending on the loan amount, and the remaining half is fully forgiven after ten years if the home remains the buyer's primary residence. Homebuyers must maintain homeowner's insurance and meet property requirements, including passing an inspection. The mortgage is interest-free and must be repaid only if the home is sold or refinanced within the 10-year period.

Aside from statewide first-time homebuyer programs in Kansas, city-specific programs are available to help you pursue homeownership in a city of your choosing. Check out the table below for some Kansas cities that provide first-time homebuyer programs for potential residents.

Kansas offers zero-down-payment loan programs, allowing you to purchase a home without any initial payment. USDA and VA loans are examples of government-backed loans that provide this benefit.

USDA loans are designed to assist homebuyers in rural areas. The U.S. Department of Agriculture issues these loans as part of its Rural Development Guaranteed Housing Loan program. This initiative aims to make homeownership more accessible for individuals and families in designated rural areas.

USDA loans provide several advantages, including no down payment, competitive interest rates and lower mortgage insurance costs than conventional loans. These benefits make it an attractive option for eligible homebuyers who might otherwise struggle to secure financing. The program also offers flexible credit guidelines, allowing more people to qualify despite having less-than-perfect credit.

To qualify for a USDA loan, your property must be 2,000 square feet or less and located in a USDA-eligible rural area with a population under 35,000. You must also meet specific income limits, which vary depending on your location. For instance, in Finney County, Kansas, the income limit is $69,350, while in Meade County, Kansas, it's $72,250 for a four-person, low-income household.

VA loans are a mortgage option issued by the U.S. Department of Veterans Affairs. They are designed for veterans, active-duty service members and certain members of the National Guard and Reserves. These loans provide an opportunity for those who have served to purchase a home with favorable terms.

VA loans offer several benefits, including the ability to purchase a home with no down payment. They do not require private mortgage insurance (PMI), which can be a significant cost-saving factor. VA loans often have lower interest rates than private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Kansas is 6.54%, while for a 30-year fixed-rate VA loan, the APR is 6.52%.

To qualify for a VA loan, you must meet specific eligibility requirements. These include your length of service or service commitment, duty status and character of service. You must also meet certain income limits that vary based on location. A valid Certificate of Eligibility (COE) is also required to apply for a VA loan.

First-time homebuyers in Kansas can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are often compared as they are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, while conventional loans may require as low as 3% for first-time homebuyers. Conventional loans typically have stricter credit score and debt-to-income ratio requirements, making them less accessible to some borrowers.

As of November 2024, the APR for a 15-year fixed-rate conforming loan in Kansas is 5.99%, while the APR for a 15-year fixed-rate FHA loan is 8.46%. FHA loans often have higher APRs due to more fees and extra costs associated with government-backed loans.

You can use our FHA vs. conventional loan calculator below to help you compare FHA and conventional mortgage programs and determine the best option for you.

To help you navigate first-time homebuyer programs in Kansas, we've answered some frequently asked questions, aiming to guide you in choosing the best option and bringing you closer to homeownership.

Explore additional MoneyGeek resources for first-time homebuyers in Kansas to help you with the homebuying process.