The real estate market in Kansas is looking good. At less than 5 percent, the average unemployment rate is lower than that of the rest of the US. In recent months the labor force has begun to grow again, meaning that the unemployment rate is dropping even further. Mortgage rates are exceptionally low in Kansas, and the forecast is that the fixed rate on 30-year mortgages will remain less than 5.3 percent during the next year, which will make home buying even easier. During the past three years, home sales in Kansas have risen, and it is expected that the average home values will continue to rise above 2.4 percent this year and at least another 2.2 percent next year. So if you’re a first time home buyer Kansas, you are fortunate because there are programs, grants, and incentives designed just to make it easier for you. Some of them are state-wide programs and others have been set up specifically for Topeka KS, Wichita KS, and Leavenworth KS. Each program has a different set of qualifications, but many of them are based on the income level of the applicant.
Is there a program that can help me, as a low-income first time home buyer Kansas, with a mortgage?
The Kansas Housing Resources Corporation (KHRC) is the main administrator of federal housing programs in Kansas. Its goal is to make more affordable and accessible housing available for the Kansas residents who have reduced incomes. The corporation works with lenders, developers, agents, builders, government agencies, and service providers across the state. You must fit into a specific income range to qualify, but properties in Topeka, Wichita, Kansas City, Lawrence, and Johnson County are not included in this program. A buyer that meets the income requirements and has not owned a home in the past three years can apply for a soft loan that will be forgiven over time. Depending on your income, the loans available range between 15–20 percent of purchase prices, with buyers making a minimum investment that amounts to two percent of the sale price.
Is there a program that can help me buy my first home in Leavenworth KS?
The US Dept of Housing and Rural Development (HUD) offers home ownership assistance in Kansas. Applicants need to meet income eligibility requirements and they must plan to live on the property. It’s for applicants who are able to get preapproval from a mortgage company or bank but need extra funds to make the deal go through. The program offers lower income home buyers up to $12,000 to put towards a mortgage buy down, payment assistance, or closing costs. That figure is limited, however, to 15 percent of the entire selling price. Applicants with a moderate income level can receive up to 10 percent of the home selling price, which amounts to $8,000 toward the purchase of a new home.
What type of monetary help can I get so that I can buy my first home in Topeka KS?
FHLBank Topeka has created a fund within the Affordable Housing Program (AHP) that assists the first time home buyer in Kansas. The Homeownership Set-aside Program (HSP) offers down payments, money for closing costs and help with home repairs to first time buyers earning at or less than 80 percent of the Area Media Income (AMI) for any household buying or building a home in Kansas. The program offers eligible households a forgivable grant with a retention period of five years. The program works together with FHLBank members. They work directly with the homebuyers, submit appropriate documents to FHL Bank, distribute the grant money at closing and request reimbursement of funds after closing. The current amount of HSP funds available are $4.5 million, and the maximum subsidy for each household is $5,000.
Is there a program that can help me with cash for the down payment and closing costs on my first home in Kansas?
The Kansas Housing Assistance Program offers up to 4 percent in cash assistance to the first time home buyer Kansas. Sponsored by the counties of Sedgwick and Shawnee, the program is statewide, so anyone in any city in Kansas can apply. The first time buyer cannot have owned a home in the past three years, unless the one to be purchased is considered to be in a Qualified Targeted Area Census Tract. It provides up to 4 percent cash assistance that can be used for down payments or closing costs on a first time home mortgage loan. It applies to 30-year fixed rate high loan to value mortgages, and has unlimited funding. The mortgage rates are set daily and are available from the lenders. The buyers must have a qualifying credit score of more than 660, be a first time homebuyer and meet income and purchase price limits. In Kansas City KS, the maximum income ceiling for a household of one to two people is $73,300. In Lawrence KS it is $71,300, and it is $66,300 in all other Kansas areas. This is the total gross yearly income for all the residents living in the home that are age 18 or above. If there are three or more people over 18 in the household, the maximum income levels are $84,295 in Kansas City KS, $81,995 in Lawrence KS, and $76,245 in all other Kansas areas. The program covers single-family homes, a duplex (the buyer must live in one unit), condos, and townhomes.
 2 Point Highlight
Mortgage rates are exceptionally low in Kansas, and the forecast is that the fixed rate on 30-year mortgages will remain less than 5.3 percent during the next year, which will make home buying even easier.
During the past three years, home sales in Kansas have risen, and it is expected that the average home values will continue to rise above 2.4 percent this year and at least another 2.2 percent next year.
