First-Time Home Buyer Programs in Kansas 2026
Kansas Housing Resources Corporation (KHRC) runs one first-time buyer program: a 0% forgivable second mortgage of 15% or 20% of the price, capped at $40,000, for households at or below 80% of area median income. It excludes Johnson County and the cities of Kansas City, Lawrence, Topeka and Wichita.
KHRC doesn’t make first mortgages. Its homeownership page lists five items: First Time Homebuyer, Home Loan Guarantee for Rural Kansas, the Kansas Homeowner Assistance Fund (closed to new applications since December 15, 2023), Weatherization Assistance, and Homebuyer 101 Resources. None of them is a state bond loan or a mortgage credit certificate. So a Kansas first-time buyer puts together two pieces: a market-rate first mortgage from one of KHRC’s participating lenders, and KHRC’s HOME-funded second mortgage on top. The rules below come from KHRC’s program summary (updated 1/20/26), its Training and Operations Manual (3-19-26), its fact sheet, and its limit sheets, all read on September 24, 2026. Our Kansas down payment assistance guide covers the city programs in the excluded metros.
Where the KHRC program works, and why the big metros are out
The program is paid for with federal HOME Investment Partnerships funds. KHRC’s fact sheet explains the map: “Major metro areas receive their own federal resources and administer their own housing initiatives, which may or may not include homebuyer assistance programs. KHRC administers funds for the portions of the state outside these metro areas.” Except for Johnson County, which is excluded countywide, the exclusion covers city limits only, not the whole metro. A house in Derby, in Sedgwick County, can qualify. A house inside Wichita city limits can’t.
The first mortgage: KHRC’s rules for your lender
You can only use the program if the first mortgage “is obtained from a lender participating with the State.” The manual sets the loan terms:
- a 30-year, fully amortizing fixed-rate loan, with no ARMs, interest-only loans or balloons;
- FHA, VA, USDA Rural Development or conventional;
- a rate no more than 0.65% above Freddie Mac’s Primary Mortgage Market Survey rate;
- a housing ratio between 15% and 30%, and total debt at 45% or less;
- no purchase money from a home equity line of credit.
There’s no credit-score cutoff. KHRC’s fact sheet says “The program has no credit score requirement, but you must be able to secure a first mortgage with an interest rate in line with the current market.” KHRC also reviews the Loan Estimate and Closing Disclosure “for unreasonable charges.” Compare loan types with our FHA requirements, VA loan guide and FHA vs. conventional comparison.
15% or 20%, and how the forgiveness actually works
The assistance percentage depends on household income, measured against HUD’s HOME limits. It’s up to 20% of the sales price if your income is under 50% of area median income, and up to 15% between 50% and 80%. The ceiling is $40,000 and the floor is $1,000. The money covers down payment and closing costs, and you can’t get cash back at closing.
The fact sheet says the loan “is forgiven if the buyer remains in the home for 10 years.” The manual adds the mechanics. The assistance is split into two equal halves, both at 0% and neither with a monthly payment:
| Assistance amount | First half | Second half |
|---|---|---|
| Up to $14,999 | Forgiven proportionately over 5 years (60 months) | Forgiven at 10 years; repaid in full if you sell or refinance before then |
| $15,000 to $40,000 | Forgiven proportionately over 10 years (120 months) | Forgiven at 10 years; repaid in full if you sell or refinance before then |
If you turn the home into a rental, “the entire amount of the HOME assistance originally provided must be recaptured.” Refinancing your first mortgage during the 10 years requires KHRC review. For the whole decade, you must keep homeowners insurance of at least the sales price, with KHRC listed as secondary payee. Title insurance is required on the second mortgage too, “likely for additional cost.”
Who counts as a first-time buyer under KHRC’s HOME rules
The test covers the whole household: “Any adult expected to reside in the home” must meet it, whether or not that adult is on the title or the note. The person must not have owned a principal residence in the three years before the purchase. KHRC also checks tax returns: “Eligible applicants may not have taken an income tax deduction on Schedule A of their Federal income tax returns for any residence within the past three years.” Every adult resident submits three years of federal returns or a non-filing affidavit.
Three groups can qualify despite recent ownership:
- A displaced homemaker: a divorced adult who worked mainly unpaid at home for several years, is unemployed or underemployed, and lost the house to the spouse or a forced sale in the divorce.
- A single parent: divorced, with at least 50% custody of a minor child, and the marital home went to the spouse or was sold in the settlement.
- Owners of certain housing: a manufactured home that isn’t on a permanent foundation, or a condemned structure that can’t be brought up to code for less than the cost of a new one.
Income and price limits for 2026
KHRC uses HUD’s FY2026 HOME income limits and counts the expected income of every adult who will live in the home. In the Wichita metro area (Butler, Harvey and Sedgwick counties), a four-person household tops out at $48,250 for the 20% tier and $77,200 for the 15% tier. The purchase price limit is $219,000 in most counties and higher in a few, such as $285,000 in Douglas County, effective December 1, 2025. Both tables are on the KHRC First Time Homebuyer page. Households with $10,000 or more in non-retirement assets face a spend-down requirement.
The house has to pass KHRC’s inspection
KHRC orders its own inspection under the HOME property standards once your reservation is confirmed. If the house fails, “the seller has 30 days to complete the repairs at their own expense.” Houses built before 1978 must clear lead-paint rules, and any abatement is at the seller’s cost. KHRC’s FAQ puts it plainly: “Fixer-uppers do not work well with our program.” Other property rules:
- Eligible homes are single-family houses on five acres or less, condos, townhomes, half of a duplex, modular homes, and manufactured homes built after June 15, 1976 on a permanent foundation and titled as real property.
- No part of the land can sit in flood zones A, AE, AH, AO, A99, V or VE.
- The home can’t have been a rental in the last three months unless you are the tenant.
- New construction qualifies only if the purchase contract is dated after the certificate of occupancy.
- Contracts for deed aren’t allowed.
Your own money: at least 1%, no more than 10%
“Each homebuyer must invest 1% of the sale price of their own funds, maximum 10%.” Gifts can go above your 1%, up to 9% of the price, but the 1% itself can’t be a gift. Fees you pay for inspections, counseling and education count toward it.
You must complete two things through a HUD-approved agency: a one-on-one pre-purchase counseling session “Minimum 60 to 90 Minutes” and a homebuyer education course “Minimum 4 Hours.” Finish both “no later than 10-14 days prior to your home closing.” KHRC’s April 7, 2026 sheet lists four agencies, with online courses priced from $45 to $100.
From lender to closing
Pick a lender that serves your county from KHRC’s participating lender list, get pre-approved, and sign a purchase contract. The lender then sends KHRC the application package. KHRC reserves funds “on an individual first-come, first-served basis.” It confirms income eligibility within ten business days, and a confirmed reservation stays valid for 120 days. Inspection results come within twenty business days of the reservation. Once the closing documents are in, KHRC responds within three business days with an approval or a request for more information. It then draws the funds from HUD, which takes 7 to 10 business days.
Budget first with our affordability calculator, mortgage calculator and down payment calculator, then get pre-approved. Closing fees are covered in closing costs in Kansas. More: Kansas hub, Heartland lenders, and first-time programs in Colorado, Nebraska and Oklahoma.
Kansas first-time buyer questions
Is KHRC’s assistance free money?
No. It’s a 0% forgivable second mortgage. You keep all of it only if you stay 10 years. Sell or refinance earlier and you repay the unforgiven part, including the whole second half.
Can I use it to buy in Wichita or Topeka?
Not inside those city limits, and not anywhere in Johnson County. Towns outside those city limits in the same counties are eligible.
My roommate owned a house two years ago. Does that matter?
Yes. KHRC applies the three-year test to every adult who will live in the home, not just the borrowers.
What credit score do I need?
KHRC sets none. You need a lender to approve a 30-year fixed first mortgage at a market rate, with housing costs of 15% to 30% of income and total debt of 45% or less.
Does Kansas have a mortgage credit certificate?
Not through KHRC. Its current homeownership programs are the First Time Homebuyer loan, the Home Loan Guarantee for Rural Kansas, which guarantees loans for lenders, and Weatherization Assistance, which provides free energy-efficiency upgrades. The Kansas Homeowner Assistance Fund was a pandemic mortgage-relief program and closed to new applications on December 15, 2023.