Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance

The 2024 Guide to Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance

Dreaming of a front porch in Wichita or a yard for summer barbecues in Overland Park? The Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance program can transform that dream into a deed by adding up to $15,000 to your purchase power. Below, you’ll find a clear roadmap—peppered with insider tips, real-life anecdotes, and the latest numbers—to help you claim your spot on the Kansas property ladder.

Why Down Payment Assistance Matters in Kansas

Across the Sunflower State, the median single-family home price crossed $265,000 in 2023, according to data aggregated from multiple listing services. A 3% conventional down payment on that price still equals nearly $8,000—before closing costs and moving trucks. No wonder roughly 47% of Kansas renters told the Federal Reserve they worry about saving enough to buy.

That’s where the Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance program steps in. Instead of draining every piggy bank, qualified buyers receive an infusion of state funds, essentially turning a steep climb into a manageable hill.

How the KHRC First Time Homebuyer Down Payment Assistance Works

Program Snapshot

• Maximum assistance: Up to $15,000 toward down payment and/or closing costs.
• Funding structure: Zero-interest, forgivable loan with a 10-year compliance period.
• Target areas: All Kansas counties except Johnson County and parts of Shawnee County (due to separate municipal programs).
• Income limits: 80% of area median income (AMI) or below—adjusted for household size.
• Property types: Primary residences only; single-family homes, condos, townhomes, and some manufactured homes.
• Source: Kansas Housing Resources Corporation

A Micro-Story: Marcus & Elena

Marcus, a nurse in Salina, and Elena, a graphic designer, found a $190,000 bungalow but only had $5,000 saved. Through KHRC they received $10,500, lowering their mortgage balance and eliminating private mortgage insurance. Instead of postponing parenthood to save longer, they now spend evenings decorating the nursery.

Eligibility Requirements – How Do I Qualify?

People frequently ask, “How do I qualify for the Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance?” Eligibility hinges on four pillars:

1. First-time buyer status. You haven’t owned a home in the past three years. (Exceptions apply for displaced homemakers and some veterans.)
2. Income caps. Household income must sit at or below 80% AMI. For example, in Sedgwick County the 2024 limit for a family of three is roughly $63,900.
3. Minimum investment. Buyers contribute at least 2% of the purchase price from their own funds.
4. Homebuyer education. Complete a KHRC-approved course—usually eight hours online or in person.

Meeting these criteria opens the door, yet lenders will still underwrite your primary mortgage. In practice, that means a stable job history, manageable debt-to-income ratio (DTI), and a mid-600s credit score or better.

Do I Have to Repay the KHRC Down Payment Assistance?

The short answer is “usually not,” and here’s why:

• Forgivable loan: KHRC records a second mortgage at 0% interest. Each year 10% of the balance is forgiven.
• Compliance period: After 10 years of owner occupancy, the lien dissolves automatically.
• Early exit: Sell, refinance, or move out sooner, and you’ll repay only the unforgiven portion. For instance, selling in year five triggers roughly 50% repayment.

Bottom line: Stay a decade and the assistance feels more like a grant than a loan.

Step-by-Step Application Roadmap

1. Connect with a KHRC-approved lender. They’ll pre-qualify you and initiate the assistance request.
2. Finish homebuyer education. Hang onto the completion certificate—it’s required for closing.
3. Select an eligible property. The home must pass an HQS (Housing Quality Standards) inspection if built before 1978.
4. Submit KHRC packet. Your lender forwards income docs, purchase contract, and inspection results to KHRC.
5. Funding reservation. KHRC issues a commitment letter, usually within 7–10 business days.
6. Close on the home. Funds are wired to the title company and applied at settlement.
7. Live happily—and compliantly—ever after. Occupy the property, pay your mortgage, and watch that lien evaporate over ten years.

Pros, Cons, and Pro Tips

Advantages

• Reduces or eliminates PMI, cutting monthly payments by $80+ in many cases.
• Pairs with conventional, FHA, VA, and USDA mortgages.
• Zero interest and fully forgivable—rare perks compared with national DPA programs.

Drawbacks

• Income caps exclude some urban professionals.
• 10-year lien may complicate short-term resale plans.
• Funds are limited; once annual allocations run dry, applications pause.

Power User Tips

• Time your search: KHRC releases new funding each July. Shopping in late summer increases availability.
• Layer smartly: Combine KHRC aid with seller concessions to reach zero out-of-pocket.
• Don’t skip the HQS dry run: Have your realtor walk the home with the checklist before paying for an official inspection.

Additional Resources & Layering Options

Combining KHRC with Federal Loan Types

Kansas buyers frequently merge the Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance with government-backed loans. FHA’s 3.5% down pairs nicely, while VA and USDA loans can channel KHRC dollars toward closing costs. Just confirm your lender knows how to structure the second lien so it satisfies agency guidelines.

Local Supplements

• City of Topeka Opportunity To Own – up to $30k in targeted neighborhoods.
• Wichita HOME program – up to $20k for specific census tracts.
• Federal Home Loan Bank grants – additional $7,500 for very low-income buyers.

Frequently Asked Questions

What credit score do I need for the KHRC first-time buyer program?

Lenders typically want at least a 640 middle score for conventional or FHA loans. Some portfolio lenders may dip to 620, but higher scores improve mortgage pricing.

Can I use KHRC assistance with FHA, VA, or USDA loans?

Yes. KHRC funds act as a silent second that satisfies agency rules. Your lender must document the loan as grant-like and ensure combined liens don’t exceed 100% of appraised value.

How long does the KHRC application process take?

Most buyers receive funding approval within 10 business days once a complete file hits KHRC’s desk. Factor in lender underwriting and you’re looking at 30–45 days from contract to closing.

Is Johnson County eligible for KHRC down payment aid?

No. Johnson County operates its own first-time buyer program with separate rules. Residents there should apply through county housing offices instead.

Ready to Unlock Your Kansas Front Door?

The longer you wait, the more that “someday” house slips out of reach. If you meet the guidelines for the Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Down Payment Assistance program, tap into it now—before annual funds are spoken for. Reach out to a KHRC-approved lender or schedule a strategy call with our team of Kansas real estate pros. We’ll walk you through pre-approval, property search, and compliance so you can move from scrolling listings to swapping keys in as little as six weeks.

Let’s plant your stake in Kansas soil today.

Suggested URL Slug: /kansas-khrc-first-time-homebuyer-down-payment-assistance-guide