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First Time Home Buyer Kansas
First time home buyer Kansas information and resources that help first time home buyers achieve home ownership.
Kansas has it all: the metropolitan vitality of Kansas City, the college town atmosphere of Lawrence, and the tranquility of the broad grassland.
In comparison to other parts of the United States, the state also offers reasonably priced homes.
According to the Kansas Association of Realtors, the average house sale price in this area was roughly $269,000 by the end of 2021.
If you’re a first-time buyer in Kansas, contact the Kansas Housing Resources Corporation (KHRC).
The state’s major housing agency provides down payment assistance that may help you acquire and own a home more reasonably.
Assistance with Kansas down payments
KHRC First-Time Homebuyer Program
KHRC offers a program to assist first-time homebuyers with their down payment, fittingly named the First-Time Homebuyer Program.
The program intends to address one of the most significant impediments to homeownership: saving enough money for a down payment and closing costs.
KHRC’s support, in the form of a second loan with no monthly payments, can help you cover between 15% and 20% of the purchase price of the home. Your income impacts the amount of assistance you are eligible for:
➣ 20% – If your household income is less than 50% of the area median income in the area where you are purchasing, you may qualify for a loan for 20% of the purchase price.
➣ 15% – If your household income is between 50% and 80% of the area median income, you may qualify for a 15% down payment loan.
There is considerable motivation to remain in the home you purchase, as if you stay for ten years, the loan will be totally canceled.
There are more requirements as well:
➣ There is no minimum credit score requirement, but you must be accepted for a 30-year conventional, FHA, VA, or USDA loan covering at least the first 80% of the purchase price of the home.
➣ You must contribute at least 2% of the buying price with your own finances.
➣ Your annual income cannot exceed 80% of the area median income in the area in which you are purchasing.
➣ The home you’re purchasing cannot exceed the maximum purchase price; in most counties, the maximum is $124,000, but there are several exceptions, including one in Pottawatomie County, where the maximum is $198,000.
If you’re looking to purchase a property in Topeka, Wichita, Lawrence, Kansas City, or Johnson County, you’ll need to consider alternative financing.
KHRC’s support is accessible exclusively to buyers who are not located in these locations.
Local homebuyer assistance programs
Depending on the area in which you wish to purchase, you may be eligible for additional assistance programs that might help make your first home purchase more affordable.
Topeka, for example, may be on your short list as one of the state’s largest cities.
If so, it’s worth investigating the Topeka Opportunity to Own (TOTO) program, which assists first-time homeowners in obtaining between $20,000 and $30,000 to fix a home.
➣ A $500 down payment is required.
➣ A purchasing price of up to $75,000
➣ 12 hours of education on homebuying and home maintenance
➣ A household income of less than 80% of the region median ($62,150 for a family of four)
Additionally, assistance is available in Leavenworth, where the city is making a concerted effort to recruit first-time homebuyers, as more than half of its residential homes are rented.
If your salary meets certain criteria, you may be eligible for up to $8,000 in grant aid toward the purchase of a home, providing you can cover at least half of the down payment cost.
All you have to do is stay in the home for at least five years to keep the cash free and clear.
Other lending options for first-time homebuyers
Along with examining state and local homebuyer assistance programs, consult Bankrate’s guide to first-time homebuyer loans and programs to determine your national eligibility.
First Time Home Buyer Kansas Takeaways
If you’re serious about purchasing a home in Kansas, mortgage rates are rising, so you should start researching choices now to get a feel of what banks, credit unions, and other types of mortgage lenders are charging in the state.
If you come across an attractive rate, lock it in immediately to avoid missing out.
If the present seller’s market overwhelms you and you decide to put off purchasing a property, some relief is on the way this summer.
Beginning in July 2022, first-time homebuyers in Kansas will be able to open a designated savings account with interest-free tax benefits to save for a home purchase.