Kansas Housing Resources Corporation (KHRC) Programs:
Updated October 15, 2026KHRC administers HUD HOME-funded first-time homebuyer assistance statewide through participating lenders. The statewide FTHB subsidy is a 0% deferred second (soft) loan sized to a percentage of the purchase price (income-tiered) and is commonly forgivable if program occupancy rules are met. Confirm eligibility, participating lenders, and county-specific income/purchase rules at KHRC First Time Homebuyer resources and check HUD HOME income limits listed below.
Kansas First-Time Homebuyer (KHRC / HOME) Program — at a glance:
Who it serves: First-time buyers (no ownership in the past 3 years in most cases) at or below HUD HOME income limits (county-specific).
What it offers: A 0% deferred second loan for down payment and closing-cost assistance sized to a percentage of the purchase price (KHRC: typically 20% of sales price for households at or below 50% AMI; 15% for households >50% and ≤80% AMI). Assistance is subject to minimum/maximum limits and a proportional forgiveness schedule — see the KHRC manual for program examples and exact rules.
How to apply: Through an approved KHRC participating lender or KHRC intake: Start with KHRC.
- Geography: KHRC HOME funds apply statewide but exclude properties located within participating jurisdictions: the city limits of Kansas City, Lawrence, Topeka, Wichita, and Johnson County — those places may operate local HOME/CDBG programs instead. See the KHRC program manual for the full geographic rule. KHRC FTHB Training & Operations Manual (6/26/25).
- Income: County-specific HUD HOME limits apply (use HUD HOME income limits or KHRC county tables where available). HUD HOME income limits (FY2026, effective 6/1/2026).
- Assistance size & caps: Tiers are income-based (about 20% for very-low income ≤50% AMI; about 15% for low income 50–80% AMI). The KHRC manual shows a minimum assistance of $1,000 and a maximum of $40,000; assistance applies to down payment and allowable closing costs.
- Forgiveness & recapture: The subsidy is split into two equal parts. The soft-second portion is forgiven proportionately over 60 months if less than $15,000 and over 120 months if $15,000 or greater. The other interest-free portion is repaid if the home is sold within the 10-year affordability period; HUD HOME recapture provisions apply. See the KHRC manual for exact recapture rules and examples. KHRC manual.
- Buyer investment & gifts: Buyers must invest at least 1% of the sales price (maximum buyer contribution typically capped at 10%). Gifts are allowed within program rules; asset spend-down rules may apply.
- Primary mortgage rules: KHRC requires a 30-year fully amortizing first mortgage (FHA/VA/USDA or conventional). The KHRC manual caps the first mortgage rate at Freddie Mac PMMS + 0.65% (see manual for underwriting detail) and disallows adjustable-rate and interest-only loans in most cases.
- Property standards: Homes must pass HOME/HUD inspection and cannot be in the 100-year flood plain; manufactured homes have additional requirements.
- Homebuyer education: KHRC requires approved counseling or HUD-approved homebuyer education for most applicants.
Down Payment Assistance (DPA) Options — what buyers should know:
KHRC (HOME) DPA: A 0% deferred second loan sized to a percentage of the purchase price (KHRC guidance: roughly 20% for households ≤50% AMI; roughly 15% for households between 50–80% AMI). Minimum assistance is $1,000; maximum is $40,000. Forgiveness and recapture rules vary by subsidy amount (see KHRC manual). Apply through a participating lender or KHRC intake: KHRC FTHB.
Local / City Programs (what to check)
Many cities and counties (and local housing authorities) run their own HOME or CDBG-funded DPA programs with different dollar caps, eligibility tiers, and geographic targeting. These local program dollar amounts and income/purchase caps change frequently — editors should verify each local program page before publishing flat-dollar examples.
- Johnson County / Overland Park area: Johnson County and many of its cities may administer local HOME/CDBG funds; KHRC HOME FTHB excludes Johnson County — check Johnson County and city program pages for current local grants/limits.
- Wichita / Sedgwick County: The City of Wichita and regional partners run homebuyer initiatives and infill incentives; confirm income and geographic targeting on city pages.
- Topeka / Shawnee County and Lawrence / Douglas County: These jurisdictions operate local programs that may differ from KHRC; confirm current caps on the city/county housing or community development pages.
Important for editors: Local flat-dollar examples were intentionally avoided unless cited from the local program page. Pull local caps and income tiers directly from city, county, or program administrator pages at publication time.
Additional Federal Options (brief)
- USDA Rural Development: 0% down purchase loans are available for eligible rural areas (Section 502 direct and guaranteed programs); property and income eligibility rules apply. See USDA Single-Family Housing programs.
- VA Loans: Eligible veterans and certain service members may purchase with no down payment subject to entitlement and lender approval; confirm eligibility and COE procedures at VA Home Loans.
- FHA: FHA-insured mortgages allow low down payments. Historically FHA permits as little as 3.5% down for borrowers meeting FHA minimum decision credit score thresholds, but FHA credit-score methodology and MDCS rules were updated in 2026 and are being implemented; confirm current MDCS and underwriting guidance with HUD or an FHA-approved lender. See HUD FHA guidance at HUD / FHA single-family housing and FHA INFO notices for policy updates.
Kansas first-time buyer assistance is split between KHRC HOME FTHB and local HOME/CDBG programs run by counties and cities. Always confirm the latest income limits, maximum assistance, participating-lender lists, and geographic eligibility with the program administrator or an approved lender before advising buyers. KHRC resources: Start your homebuying journey, KHRC program manual: KHRC FTHB Training & Operations Manual (6/26/25), and HUD HOME income limits: HUD HOME income limits (effective 6/1/2026).
Program details, income limits, interest-rate caps, and availability may change. Confirm the latest requirements with the official program administrator or a participating lender.
Seeking Agents connects buyers with Kansas agents who know local program variations and can help identify participating lenders — free for buyers and sellers.