First Time Homebuyer (FTHB) Program

What is First Time Homebuyer (FTHB) Program?

First Time Homebuyer (FTHB) Program is a forgivable loan for homebuyers in Statewide, Kansas.

• KHRC's flagship federal HOME-funded FTHB program provides a 0% forgivable second mortgage of 15-20% of the purchase price (income-tiered) up to $40,000, forgiven over 10 years. 80% AMI ceiling. 1% borrower contribution. Statewide except Johnson County and the cities of Topeka, Lawrence, Wichita, and Kansas City (which administer their own HOME funds).
• KHRC FTHB provides a 0% interest forgivable second-mortgage loan funded with federal HOME funds. Loan amount is income-tiered: up to 20% of the home's purchase price for households at or below 50% AMI, or up to 15% of the purchase price for households between 51% and 80% AMI - capped at $40,000. The loan has no monthly payments, no interest accrual, and is forgiven in full if the borrower remains in the home as their primary residence for 10 years. Borrowers must contribute at least 1% (and no more than 10%) of the purchase price out-of-pocket. Pairs with the borrower's choice of a 30-year fixed first mortgage from a KHRC participating lender.
• Funding comes from Federal, HOME, and State.

How much assistance does it provide?

First Time Homebuyer (FTHB) Program provides assistance worth 20% of the purchase price, as set by the program.

• Buyer contribution: Borrower must contribute at least 1% of purchase price from own funds; not more than 10%.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

First Time Homebuyer (FTHB) Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven in full at 10-year anniversary if owner-occupies entire term and due in full on sale, refinance, transfer, or vacating the property before 10 years (pro-rata forgiveness may apply per program guidelines).
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Time Homebuyer (FTHB) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Homebuyer (FTHB) Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% AMI (Area Median Income) for the county of purchase, per HUD HOME Program income limits. Range approximately $17,500 (1-person extreme low tier) to $117,650 (large household, higher-AMI county) per 2024 HOME limits effective 6/1/24.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First Time Homebuyer (FTHB) Program caps the purchase price at $328,000.

• Eligible property types include Single-family detached, condominium, townhouse, half of duplex (one side owner-occupied), manufactured home on permanent foundation, new construction.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

First Time Homebuyer (FTHB) Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

First Time Homebuyer (FTHB) Program serves buyers purchasing in Statewide, Kansas.

How do you apply?

Applications for First Time Homebuyer (FTHB) Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agencies and KHRC-approved homebuyer education providers (e.g., Housing and Credit Counseling Inc., Catholic Charities, Habitat for Humanity affiliates). Pre-purchase counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Eligible borrowers complete KHRC online intake form; KHRC staff follows up with eligibility determination and connects borrower with a participating lender. Subject to annual HOME allocation., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.