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.

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

First Time Homebuyer (FTHB) Program is forgiven after 10 years, so a homebuyer 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.

First Time Homebuyer (FTHB) Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Displaced homemakers, single parents who only owned a home with an ex-spouse, and prior owners of manufactured homes without permanent foundation may qualify as FTHB. On credit, the program states: No minimum credit score imposed by KHRC; participating lender / first-mortgage product overlays apply (typically 620-640). A homebuyer education course is required, 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. Residency requirement: Property must be located in eligible KHRC service area (Kansas excluding Johnson County, Topeka, Lawrence, Wichita, Kansas City) and used as primary residence. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. First-time homebuyer required (no homeownership in past 3 years; exceptions for displaced homemakers, single parents, and former owners of manufactured homes without permanent foundation). Household income at or below 80% AMI for the county of purchase. Purchase price at or below KHRC county-tiered limits ($219,000-$328,000 by county; $209,000 most common). Borrower must contribute 1%-10% of purchase price from own funds. Must occupy as primary residence for 10 years to fully realize forgiveness. Property must NOT be in Johnson County or within the city limits of Topeka, Lawrence, Wichita, or Kansas City (those jurisdictions administer their own federal HOME funds). Pre-purchase homebuyer counseling required.

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.

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.

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.

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

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