If the down payment or closing costs are stopping you from purchasing your first home, then the Kansas Housing Assistance Program for first time home buyers may be just what you’re looking for! This new program (KHAP) was launched in January 2014 to help first time buyers in the State of Kansas. As with any down payment assistance program there are a few limitations that you should consider.
- 4% Borrower Cash Assistance for down payment and closing costs.
- 30 Year fixed rate high loan-to-value mortgage loans – FHA, VA and USDA Rural Development Loans.
- NO REPAYMENT OF GRANT MONEY – This is much different from previous assistance programs from a few years ago. If a buyer qualifies for Kansas Housing Assistance Program for first time home buyers and purchases a house using the 4% assistance, they DO NOT have to repay the 4% back at any time if they sell this property within a certain period of time.
- There is no end date at this time for this program. Kansas Housing Assistance Program has a revolving fund that is used for that assistance.
- If the 4% isn’t used entirely for closing costs or down payment, it goes toward your principle balance and lowers what you owe.
To qualify for the Kansas Housing Assistance Program you must:
- The minimum credit score for this program is 640.
- Must be a first time home buyer or have not owned a home in the past three years. Unless the home to be purchased is in a qualified targeted area census tract.
- Meet income and purchase price limits.
- Properties can be single family detached homes, duplex (provided one unit is owner occupied), semi-detached homes, condominium, townhomes, or qualified manufactured homes on a permanent foundation.
- Maximum purchase price limit for non-target area is $250,200.
- Maximum purchase price limit for target area is $305,800.
As with any mortgage or down payment assistance program you need to do your homework. We highly recommend you speak with a seasoned Loan Officer like, Matt Devine, with Landmark National Bank who can help you compare this program to others and make sure you are using the right program for you and your family. Contact Matt Devine and complete an online application today.
Even though there are limits on this program, there are still a number of properties that qualify. Check out some of the properties that qualify.
With Kansas Housing Assistance Program covering your down payment and closing costs, the next step is finding you and your family that perfect home! What are you waiting for?