2025 Kansas First-Time Homebuyer Programs and Loans
Kansas offers many options for first-time homebuyers looking to fast-track their dreams of homeownership. Designed primarily for low- and moderate-income households, programs in the state offer assistance to cover down payment and closing costs. However, you’ll need to meet certain eligibility criteria for zero-interest loans or grants.
Find out what programs are available in your area and how you can qualify.
First-time homebuyer programs in Kansas
The Kansas Housing Resources Corp. (KHRC) and several other municipal organizations offer down payment assistance programs for first-time homebuyers. Some criteria you’ll need to meet include being at or below income limits and living in the home for a set number of years.
Some Kansas first-time homebuyer programs include:
- Kansas Housing First-Time Homebuyer Program: Good option for people who qualify for multiple assistance programs
- Kansas Down Payment Assistance: Good option for a mortgage with down payment assistance
- FHLBank Topeka Homeownership Set-Aside Program: Good option for Kansas, Colorado, Nebraska or Oklahoma residents
- City of Leavenworth Home Ownership Program: Good option for Leavenworth residents
- Topeka Opportunity to Own (TOTO) Program: Good option for purchasing less-expensive homes in Topeka
- City of Wichita’s HOMEownership 80 Program: Good option for purchasing qualifying new construction homes in Wichita
Kansas Housing First-Time Homebuyer Program
This program offers a 0% interest loan amounting to 15% or 20% of the home’s purchase price to cover down payment and closing costs. As long as you live in the home for a minimum of 10 years before refinancing or selling, the loan will be fully forgiven. This program is a great fit for homeowners who can afford to invest at least 1% to 10% of their own funds towards the down payment.
Applicants must earn at or below 80% of the area’s median income to quality. Kansas residents are eligible, except those purchasing homes in Johnson County or the city limits of Kansas City, Lawrence, Topeka and Wichita.
Requirements
- Be approved for a first mortgage from a participating KHRC lender
- Income at or below 80% of the area’s median income
- Loans can be used only for existing homes that don’t require a lot of repair work
Pros and cons
| 0% interest loan worth 15% or 20% of the home price Fully forgivable loan if requirements are met Can be used alongside other assistance programs | Must meet income threshold Not available statewide New construction homes may not qualify |
Kansas Down Payment Assistance
Homebuyers looking to simplify their financing can qualify for a 30-year fixed-rate mortgage and a grant through the Kansas Down Payment Assistance (DPA) program. The size of your grant, which can cover the down payment and closing costs, is based on the percentage of the home’s sale price. Receiving this free first-time homebuyer assistance comes with certain conditions, like a minimum credit score requirement and a maximum income threshold for your area.
Requirements
- Minimum credit score of 640.
- Most Kansas residents must earn less than $133,420 to qualify. The income limit is $142,380 for Nemaha County residents, $142,800 for Lawrence residents, and $144,340 for Kansas City residents.
- Must be approved for a 30-year-fixed rate first mortgage with a program-approved lender.
Pros and cons
| No need to pay back grant Various home types qualify Works with government-backed and conventional mortgages | Must meet minimum credit score requirement Earnings must be below area-specific income limits |
FHLBank Topeka Homeownership Set-Aside Program
Run by FHLBank Topeka, the Homeownership Set-Aside Program offers assistance in the form of a forgivable grant ranging from $2,500 to $15,000 to cover your down payment, closing costs and repair expenses. You must agree to live in the home for at least five years before selling it or refinancing the loan. You can apply for the grant through one of FHLBank Topeka’s members.
Requirements
- Earnings must be at or below 80% of the area’s median income
- Property must be located in Kansas, Colorado, Nebraska or Oklahoma
- Must reside in the purchased home for five years
- Completion of a homebuyer education course from an approved provider
- Apply before the annual deadline (November 28 for 2025)
Pros and cons
| Forgivable grant of up to $15,000 Available throughout Kansas Open to all qualifying homebuyers | Mortgage must be obtained through an FHLBank Topeka member Must live in the home for five years Area-specific income limits apply |
City of Leavenworth Home Ownership Program
Homebuyers with low- to moderate-income looking to settle in Leavenworth can qualify for grants of up to $8,000 to help them buy property through the City of Leavenworth Home Ownership Program. Your income must be within the limits established by the U.S. Department of Housing and Urban Development (HUD) to qualify. Grant recipients must live in the purchased home for at least five years, and the home purchase price cannot exceed $238,000.
Requirements
- Earn below HUD income limits, which vary based on household size
- Must have preapproval for a fixed-rate mortgage
- Purchase price must be $238,000 or lower
- Must provide half of the required down payment
- Cannot have owned a home in the past five years
- Home must be in Leavenworth
- Must complete a homebuyer education course from an approved provider
Pros and cons
| Up to $8,000 in down payment help No repayment needed for grant funds Lower credit scores may qualify | Home price cannot exceed $238,000 Must meet HUD income limits Cannot have owned a home for at least five years Limited to homes in Leavenworth |
Topeka Opportunity to Own (TOTO) Program
First-time homebuyers wanting to settle in Topeka can get up to $5,000 in down payment assistance and as much as $30,000 to repair a home through the city’s Opportunity to Own program. These grants will be fully forgiven after you’ve lived in the home for five years. To qualify, you need to earn less than the HUD income limits. The home price cannot exceed $75,000 and you must have at least $500 saved toward a down payment to qualify.
Requirements
- Must earn less than 80% of the area’s median income
- Home price cannot exceed $75,000
- Must have at least $500 for a down payment
- Home must be located in Topeka
- Cannot own any real estate at the time of purchase
- Must complete 12 hours of homebuyer training courses
Pros and cons
| Small down payment required Forgivable grants Funding available for down payment and repairs | Home price cannot exceed $75,000 Must meet income limits Can only be used in Topeka Must reside in the home for five years |
City of Wichita’s HOMEownership 80 Program
People looking to buy a newly constructed home in certain areas of Wichita may be able to take advantage of the city’s zero-interest deferred loans. However, you’ll need to apply for this program through the city’s HOME program-funded housing development partners and be referred to the program. Currently, you can apply through organizations, including Wichita Habitat for Humanity, Jakub’s Ladder and HOPE Community Development.
If you qualify, you may be able to borrow up to 20% of the home’s purchase price plus an additional $2,000 to cover closing costs, or the amount your mortgage lender requires. The loans are partly forgivable, too. Half of the loan may be waived after five years if it’s less than $15,000 or after 10 years if the amount is higher. If you sell or refinance before that time, you will need to pay back the entire loan.
Requirements
- Income limits apply, based on household size
- Be referred by the city’s partner organizations, including Mennonite Housing or Wichita Habitat for Humanity
- Put down $1,000 of your own money
- Qualify for a fixed-rate first mortgage
- Complete a homebuyer training class
- Cannot have owned a home in the past three years unless you’re a single parent with custody of minor children
Pros and cons
| Partially forgivable loans worth up to 20% of the purchase price Up to $2,000 in closing cost assistance | Must be referred for the program by a partner organization Need to be at or below income thresholds |
Kansas first-time homebuyer qualifications
Each first-time homebuyer program in Kansas comes with its own set of application criteria. However, some common requirements include not owning a home in the past few years, annual earnings below 80% of your area’s median income, meeting home price limits, and purchasing property in a specific county or city.
Steps to apply for a first-time homebuyer program
- Verify that you meet income requirements. Since these down payment assistance programs are intended to help low- to moderate-income families, your income cannot exceed a certain threshold. For most programs, you’ll need to show that your earnings are 80% of your area’s median income or less.
- Save for the minimum down payment. While these programs help cover down payment costs, some also require you to contribute some of your savings toward the home purchase. For instance, the City of Leavenworth Home Ownership Program requires that you provide the funds for at least half of the required down payment.
- Get preapproved for a mortgage by an accepted lender. Most of Kansas’s homebuyer assistance programs require you to obtain preapproval for a mortgage from a list of accepted lenders. While the standards of individual lenders can vary, you’ll generally need a credit score of at least 640. However, a higher score is always better, especially given the average credit score in the state is 722, according to Experian. Each mortgage lender may also have unique qualification criteria and approval processes.
- Find a home in the right area and at the right price. Many of Kansas’s first-time homebuyer programs come with location limitations. For instance, the Kansas Housing First-Time Homebuyer Program cannot be used by home shoppers in Kansas City, Lawrence, Topeka, Wichita or Johnson County. Many programs also set limits on the maximum home price. Be sure to tell your real estate agent about your criteria when purchasing a home.
- Complete a homebuyer education class. Several programs require you to take a homebuyer training course from an approved provider before providing down payment assistance. While these classes are usually free, you are expected to pay close attention and complete the course.
- Be willing to commit to the home. Many first-time homeowner programs in Kansas are forgivable loans that require you to live in the home for at least five to 10 years to retain the financial assistance benefits. If you sell or refinance the home before that time, you could have to repay the entire loan balance.
Understanding Kansas first-time homebuyer down payment assistance
Most Kansas homebuyer assistance programs provide money to help cover down payment and closing costs through forgivable loans or grants. However, some buyers may find different forms of aid.
According to Down Payment Resource’s homeownership program index, about 90% of the 14 down payment assistance programs in Kansas had available funding as of the fourth quarter of 2024.
Deferred second mortgage
Requires repayment? Yes
Used to cover down payment and closing costs, this type of mortgage loan acts as a second lien on your home but doesn’t require you to make any monthly payments. Instead, you repay this second mortgage when you refinance or sell your home. Many times, these loans also charge zero percent interest.
Forgivable second mortgage
Requires repayment? Yes, if you meet certain requirements
Most of the homebuying assistance programs in Kansas provide help with down payment or closing costs through forgivable 0% interest second mortgages. Similar to a deferred second mortgage, these forgivable loans also act as a second lien on the property, but they do not need to be repaid as long as you live in the home for a specified number of years. If you sell or refinance the home early, the loan will typically not be forgiven and must be repaid.
Grant
Requires repayment? No
Some homebuying assistance programs in Kansas offer grants to help cover closing costs or the down payment. Unlike a deferred or forgivable second mortgage, this form of aid is not a second lien and does not need to be repaid.
Mortgage credit certificate
Requires repayment? Not applicable
Kansas does not offer a mortgage tax credit certificate program.
Keep these things in mind about DPA programs
How much of a down payment do I need to buy a house in Kansas?
How large a down payment you’ll need to secure a home in Kansas varies widely. First-time homebuyers in Kansas spent $27,407 on their down payment in 2024 on average, amounting to about 11.9% of the $228,420 typical sales price of properties they purchased, according to LendingTree data. You may qualify for a loan with a much smaller down payment depending on the home’s purchase price, the type of mortgage you obtain and the lender’s requirements.
Can I qualify for down payment assistance in Kansas?
You must meet certain qualification criteria — the most significant of which is earning below a specific income limit. Applicants typically need to be first-time homebuyers or shouldn’t have owned property within the past three to five years. Many programs also come with stipulations requiring you to remain in the purchased home for five to 10 years, take a homebuying education course, get preapproved for a 30-year fixed-rate mortgage and buy within a certain geographic area.
How do I apply for Kansas first-time homebuyer down payment assistance?
Depending on the type of Kansas down payment assistance program you’re interested in, you may need to be referred through a nonprofit or partner organization. Otherwise, you may be able to apply online or contact the program administrators for guidance. A program’s approved mortgage lenders may also be able to walk you through the process.
Other first-time homebuyer loan programs
Conventional loans
Mortgages that are not backed by a government entity are known as conventional loans. This type of mortgage usually offers qualifying homebuyers favorable interest rates and terms but comes with restrictions, such as needing to meet minimum credit score requirements.
FHA loans
Insured by the Federal Housing Administration, FHA loans are aimed at homebuyers with low credit scores and limited down payment savings. Lenders accept borrowers with credit scores as low as 500. The trade-off is that FHA loans are capped at a certain loan size, require a 3.5% or 10% minimum down payment depending on your credit score, require two kinds of mortgage insurance, and necessitate the purchase of an FHA home appraisal. FHA loan rates will vary but may be lower than those of conventional loans.
VA loans
Designed to help military service members and veterans purchase property, these mortgages are backed by the U.S. Department of Veterans Affairs (VA). The loans require no down payment, have minimum credit score requirements, and typically offer competitive interest rates and closing costs. VA loans have some unique expenses, however, such as the VA funding fee, which is an extra upfront cost ranging from 1.25% to 3.3% of the total loan amount for most purchase loans, and a VA home appraisal.
USDA loans
Intended to help low- and moderate-income homebuyers afford a property in certain rural areas, USDA loans are backed by the U.S. Department of Agriculture (USDA) and come with no down payment or credit score requirements. Borrowers must earn below certain income limits to qualify. These loans offer lower interest rates than other kinds of mortgages but may come with additional costs, like a guarantee fee.
What are the best first-time homebuyer loans?
The best first-time homebuyer loan will vary depending on a borrower’s financial situation, location and the required down payment amount. There are four main types of mortgages available to first-time buyers and each one has unique advantages.
| Loan program | Best for first-time homebuyers who: |
|---|---|
| Conventional | Have good credit and can afford to make at least a 3% down payment |
| FHA | Have poor credit and can make a down payment of 3.5% |
| VA | Are active military members, veterans or a surviving spouse and lack down payment savings |
| USDA | Have low to moderate incomes and want a home in a rural area |
Home price trends in Kansas’ major areas
Buying a home in Kansas has become a pricier endeavor in the past year. Across the state, home prices rose 5.66% between 2023 and 2024, according to the Federal Housing Finance Agency. Those shopping for homes in the state’s major metro areas saw prices shoot up even more. In the Wichita metro, home prices rose 4.15% year over year as of the fourth quarter of 2024. The Kansas City metro, which straddles the Missouri-Kansas state border, saw home prices rise 4.78% in the same period, whereas Topeka’s home prices increased 9.82%.
Is there a first-time homebuyer tax credit in Kansas?
While there is no federal tax credit for first-time buyers, Kansas does offer a tax break to residents making a first-home purchase. Contributions to the Kansas First-Time Home Buyer Savings Account enable single filers to deduct as much as $3,000 per year from their taxable state income. Joint filers may be able to deduct as much as $6,000. There are also other tax credits and deductions associated with homeownership.
What are the current mortgage rate trends in Kansas?
As of March 2025, the average conventional mortgage rate in Kansas hovered around 6.83%, and the FHA loan rate hovered at an average of 5.5%. Expert mortgage rate predictions from LendingTree forecast that interest rates will remain above 6% in 2025.