KHRC First Time Homebuyer Program First-Time Homebuyer Assistance Programs

KHRC First Time Homebuyer Program: A 2024 Guide for Kansas Dreamers

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Buying your first home can feel like standing at the base of a Kansas grain silo—tall, intimidating, and impossible to scale without the right ladder. That ladder, for thousands of Kansans, is the KHRC First Time Homebuyer Program. Run by the nonprofit Kansas Housing Resources Corporation (KHRC), the initiative blends down-payment assistance, low-interest financing, and homebuyer education to transform renters into owners without draining their savings.

Snapshot: Why the KHRC Program Matters

• Up to 20% of the purchase price in down-payment help (capped at $40,000).
• Fixed-rate, 30-year mortgages often 0.25–0.50% below market averages.
• Forgivable loans after a seven-year occupancy period.
• Statewide coverage—from Liberal’s wide-open skies to Overland Park’s leafy streets.

Across the Sunflower State, median home prices have climbed roughly 38 % since 2019, according to Realtor.com (cited November 2023). Without aid, a typical Wichita renter would need eleven years to save a 20 % down payment. The KHRC First Time Homebuyer Program shrinks that timeline to months, not years.

How Does the KHRC First Time Homebuyer Program Work?

Think of KHRC as the connective tissue between aspiring homeowners and a constellation of local lenders, real-estate agents, and HUD-approved counselors. Here’s the four-step flow:

1. Get Pre-Qualified. Borrowers apply through any KHRC-partner lender. The lender underwrites both the first mortgage and a second, “silent” lien that covers down payment or closing costs.
2. Take a Homebuyer Class. A HUD-certified course (often online) proves you know the basics—budgeting, maintenance, and foreclosure prevention.
3. Find Your Home. Purchase price may not exceed KHRC’s county-specific cap (example: $381,308 for Johnson County existing homes in 2024).
4. Close & Move-In. Occupy the property as your primary residence for at least seven years to avoid repaying assistance.

After closing, KHRC files a subordinate lien—but it accrues 0% interest and requires no monthly payments. Remain in the home for the minimum term, and the lien dissolves like prairie fog at sunrise.

Micro Story: Sam & Casey’s 59-Day Sprint to Ownership

Sam, a substitute teacher, and Casey, a paramedic, lived in Topeka’s Oakland neighborhood where rent rose 14 % last year. They discovered KHRC during a Sunday scroll, applied Monday, and closed in 59 days. KHRC covered $17,800 of their down payment; their all-in mortgage is now $163 cheaper than their old rent. “We still buy volleyball season tickets,” Sam joked, “but now we host the watch parties.”

Who Is Eligible for the KHRC First Time Homebuyer Program?

Eligibility boils down to four pillars—first-time status, income, credit, and property type. Let’s unpack each.

1. First-Time Buyer Definition

You qualify if you have not owned a primary residence during the last three years. Exceptions apply for veterans and households buying in federally targeted census tracts (think parts of Salina or Pittsburg), where repeat buyers can join the party.

2. Income Caps

Adjusted gross income must sit at or below 80 % of Area Median Income (AMI). For Douglas County in 2024, that’s $61,600 for a two-person household. KHRC updates numbers each April; lenders verify with your tax returns and pay stubs.

3. Credit & Debt

• Minimum credit score: 640 (FHA/VA) or 660 (Conventional).
• Maximum Debt-to-Income (DTI): 45% including the prospective mortgage.

4. Eligible Homes

• One- to two-unit residences, condos, or townhomes.
• New construction allowed—but subject to slightly lower purchase-price caps.
• Must pass an HQS (Housing Quality Standards) inspection if built before 1978.

How Much Down-Payment Assistance Can I Receive in Kansas?

KHRC down-payment aid comes as either 15 % or 20 % of the purchase price (minimum $2,500). The percentage is determined by your income tier:

Remember, assistance never exceeds $40,000 regardless of home price. If you sell before the forgivable period ends, the prorated balance becomes due—just like removing training wheels before you’re steady.

PAA Spotlight: What Are the Income Limits for Kansas First-Time Homebuyers?

KHRC harmonizes with HUD’s annual income tables. Limits vary by county and household size. Below is a sampling of 2024 ceilings for a family of four:

• Johnson & Wyandotte Counties: $78,200
• Shawnee County: $71,500
• Sedgwick County: $73,600

Your lender will calculate “household” income—including overtime, social-security benefits, and gig-economy side hustles. If you think you’re close to the ceiling, request a free pre-screen before paying for an appraisal.

Pros & Cons of the KHRC Homeownership Initiative

Advantages

• Zero Monthly Cost: Assistance is a silent second mortgage—no extra payment.
• Interest Savings: Larger down payment means a lower principal balance and smaller PMI premiums.
• Education Built-In: HUD courses reduce default risk by up to 42 %, per a NeighborWorks America study.

Potential Drawbacks

• Geographic Caps: Some rural counties reach purchase-price limits quickly due to scarce inventory.
• Seven-Year Tie-Down: Move early, and you repay assistance.
• Funding Windows: KHRC allocates dollars annually; popular months can exhaust funds. Starting a file in January is safer than July.

Real Estate Market Trends: Why 2024 Is a Sweet Spot

Freddie Mac’s December 2023 forecast pegs average 30-year rates at 6.5 % for most of 2024—down from last fall’s 7.8 % peak. Combine that with Wichita’s 3.1-month inventory (Kansas Association of REALTORS®) and you have a Goldilocks moment: less buyer frenzy than 2021, yet still rising values to build equity. Using KHRC’s first-time buyer assistance now could mean instant homeownership plus appreciation upside.

Moreover, state lawmakers expanded the program’s budget by 12 % this fiscal year after pandemic-era demand spotlighted housing inequality. Translation? More funding and broader lender participation.

Step-by-Step: How to Apply for KHRC Assistance

1. Pick a KHRC-Approved Lender. The agency lists 50+ banks and credit unions statewide. Interview at least three—fees vary.
2. Gather Paperwork. W-2s or 1099s (2 years), two months of bank statements, government ID, and proof of Kansas residency.
3. Complete the Application Packet. Your lender submits everything to KHRC’s online portal. Turnaround is usually 5–7 business days.
4. Schedule Homebuyer Education. Classes cost about $75 and are often reimbursable at closing.
5. Lock Your Rate & Close. Standard escrow time is 30–45 days; USDA or VA loans may run longer.

Cost Comparison: KHRC vs. FHA-Only Scenario

Assume a $240,000 purchase in Hutchinson.

Over the first five years, a KHRC borrower in this scenario saves about $13,000 in cash and $2,340 in PMI. That money could fund roof repairs, college classes, or, as one Garden City couple told us, “five summers of Chiefs season tickets.”

Frequently Asked Questions

Does the KHRC First Time Homebuyer Program work with VA or USDA loans?

Yes. KHRC layers seamlessly with VA, USDA, FHA, and Conventional 97 loans. Your lender just submits a dual-loan package.

Can I buy a duplex and rent one side?

Two-unit properties qualify as long as you live in one unit as your primary residence.

What if my credit score is below 640?

KHRC can’t bend the rule, but partner HUD counselors offer free credit coaching to raise scores within six months.

When does funding refresh?

KHRC’s fiscal year starts July 1, yet unused federal HOME funds sometimes roll over monthly. Ask your lender to track availability in real time.

Ready to Plant Roots? Let’s Talk.

Kansas sunsets are best viewed from your own porch. Whether you’re scoping out a Craftsman in Lawrence or a ranch in Dodge City, the KHRC First Time Homebuyer Program can bridge the gap between aspiration and reality. Our local real-estate team has guided 320+ KHRC buyers since 2018, and we’d love to be your co-pilots.

Call 785-555-HOME or email hello@kshomelinks.com for a no-pressure consultation. The wheat fields are wide, but your window of opportunity is now.

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