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First-Time Homebuyer Program

Liberal, Kansas

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Income limit

125% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 3 years

What is First-Time Homebuyer Program?

First-Time Homebuyer Program is a forgivable loan for homebuyers in Liberal, Kansas.

  • Liberal's small-city federal-funded FTHB program - $3,000 0% interest soft second mortgage forgiven over 3 years (36 months) on a sliding scale. 125% AMI ceiling. FTHB required (3-year look-back). City-approved FTHB workshop required. Liberal city limits only (Seward County, far SW Kansas).
  • City of Liberal First-Time Homebuyer Program provides up to $3,000 in down payment and/or closing cost assistance, structured as a 0% interest soft second mortgage forgiven on a sliding scale over 36 months. The full $3,000 is forgiven if the borrower owns and occupies the home for the full 3-year period.
  • partial repayment is owed only if the home is sold or destroyed within 36 months (per the published sliding scale: 25-36/36ths repaid in year 1, 13-24/36ths in year 2, 1-12/36ths in year 3). Pairs with the borrower's choice of first mortgage from a qualifying mortgage lender.
  • Funding comes from Federal, CDBG, HOME, and City.

Do you have to pay it back?

First-Time Homebuyer Program is forgiven after 3 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Forgiven over 36 months if owner-occupied and partial repayment owed only if home is sold or destroyed within 36 months (sliding scale: 25-36/36ths in Y1, 13-24/36ths in Y2, 1-12/36ths in Y3).
  • 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 Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB defined as no homeownership in past 3 years; nieces, nephews, and grandparents do not count toward household size unless legal guardianship documented
  • The home is occupied as a primary residence
  • On credit: No published minimum FICO; first-mortgage lender overlays apply
  • A completed homebuyer education course, through City-approved FTHB Counseling Workshop providers; certificate of completion required prior to closing.
  • Residency: Property must be located within Liberal city limits (Seward County) and used as borrower's principal residence; cannot be leased or rented during city loan term
  • Citizenship or immigration status: Per CDBG/HOME federal eligibility - U.S. citizen or qualifying non-citizen
  • First-time homebuyer (no homeownership in past 3 years). Household income at or below 125% AMI per published Liberal/Seward County limits ($72,375 1-person up to $136,500 8-person). Must take a city-approved FTHB Counseling Workshop and provide certificate of completion prior to closing. All adults in household must provide proof of income. Cannot own real estate at application. Property must be borrower's principal residence and cannot be leased or rented during the city loan term. Application must be submitted to the Building Programs Coordinator at least one month prior to closing. Must be able to qualify for a first mortgage from a mortgage lender. Funds first-come, first-served.

The program excludes

  • Manufactured homes
  • Households above 125% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

First-Time Homebuyer Program limits household income to 125% of the area median income, which varies by county and household size.

  • Maximum household income up to 125% of area median by household size: 1=$72,375; 2=$82,750; 3=$93,125; 4=$103,375; 5=$111,750; 6=$120,000; 7=$128,250; 8=$136,500.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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 Program caps the purchase price as follows: No published maximum purchase price; subject to first-mortgage product limits and CDBG/HOME eligibility for the property.

  • Eligible property types include Single-family detached homes within Liberal city limits and per first-mortgage and federal CDBG/HOME eligibility.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

First-Time Homebuyer 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 Program serves buyers purchasing in Liberal, Kansas.

How do you apply?

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

  1. Take a homebuyer education course

    Required by the program, through City-approved FTHB Counseling Workshop providers; certificate of completion required prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Submit FTHB Program Application to Building Programs Coordinator at City of Liberal Building Department at least one month prior to closing. Funds awarded first-come, first-served subject to availability., and are subject to availability.

  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.

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