First-time home buyer programs in Kansas: assistance, loans and real costs

Before the program names: kansas’s KHRC program is narrower than most state programs — income-capped at 80% AMI and unavailable in some metro counties — but its 15% to 20% forgivable assistance is among the deepest in the country for those who qualify.

State housing agencyKansas Housing Resources Corporation (KHRC)
Median home price (approx.)$230,000 — statewide order of magnitude; metros differ
3.5% / 5% / 20% down$8,050 / $11,500 / $46,000 on the median
Property tax (effective)about 1.34% — roughly $3,082 a year on the median
Mortgage credit certificateNot consistently offered — ask a lender
Transfer taxKansas has no real estate transfer tax and repealed its mortgage registration tax in 2019; only recording fees apply.

State programs for first-time buyers in Kansas

Kansas Housing Resources Corporation’s First Time Homebuyer Program provides down payment assistance loans to lower-income buyers, and KHRC partners with lenders on affordable first mortgages; several cities (Wichita, Topeka, Kansas City, Kansas) run their own DPA with federal HOME funds.

How the assistance money works

KHRC’s assistance is a 0% forgivable second loan covering 15% to 20% of the price for buyers at or below 80% of area median income, forgiven over ten years of occupancy; the buyer must contribute at least 2% of the price and the home must meet quality standards.

A second-lien assistance loan has consequences at refinance — it usually must be repaid or subordinated — and a forgivable one repaid early loses its forgiveness. Plan the holding period accordingly. See how down payment assistance programs work.

The MCC: a federal tax credit for the life of the loan

Kansas does not currently operate a statewide Mortgage Credit Certificate program; check with KHRC or a local housing authority for any current tax credit option.

Income and purchase price limits

The KHRC program is limited to households at or below 80% of area median income (varying by county and family size) and excludes some metropolitan counties with their own programs; homebuyer education is required.

Closing costs, transfer taxes and who pays them in Kansas

Kansas has no real estate transfer tax and repealed its mortgage registration tax in 2019; only recording fees apply.

Kansas buyer closing costs typically run 2% to 3% of the price; with no transfer or mortgage taxes, the main items are lender fees, title insurance and prepaids. Sellers can pay a share of these costs within program limits — see seller concessions — and our closing costs guide covers the rest.

What the payment looks like on a $230,000 home

Worked on Kansas’s rough $230,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 1.34% effective rate, or about $3,082 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.

StructureDown paymentLoan amountP&I at 6.5% (30 yr)Property tax / mo (est.)
FHA, 3.5% down$8,050$221,950$1,403$257
Conventional, 5% down$11,500$218,500$1,381$257
Conventional, 20% down (no PMI)$46,000$184,000$1,163$257

Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.

Frequently asked questions

Does Kansas have down payment assistance for first-time buyers?

KHRC’s assistance is a 0% forgivable second loan covering 15% to 20% of the price for buyers at or below 80% of area median income, forgiven over ten years of occupancy; the buyer must contribute at least 2% of the price and the home must meet quality standards. Amounts and structures are updated regularly; treat the figures here as the shape of the program and verify the current numbers with the agency.

Is there a first-time home buyer tax credit in Kansas?

Kansas does not currently operate a statewide Mortgage Credit Certificate program; check with KHRC or a local housing authority for any current tax credit option. The credit is worth a percentage of the mortgage interest you pay each year, up to a federal cap, and can be combined with many first-mortgage programs.

What are typical closing costs when buying a house in Kansas?

Kansas buyer closing costs typically run 2% to 3% of the price; with no transfer or mortgage taxes, the main items are lender fees, title insurance and prepaids. Kansas has no real estate transfer tax and repealed its mortgage registration tax in 2019; only recording fees apply.

Before you apply

More on Kansas: hard money rules in Kansas · foreclosure in Kansas.

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