Tips for First-Time Home Buyers in Kansas

First time home buyers in Kansas have a lot of options to help them out from both the state and federal governments.

Buying your first home should be as simple as possible, but it is one of the biggest purchases of your life, so it is important to make sure that you have all of the tools to make a smart purchase. 

National Loans

National loans are a great option for first-time buyers, because they are accessible and typically funded by the government. 

FHA

• Federal Housing Administration (FHA) loans are for moderate to low income borrowers who are looking for low to zero down payments, and have a credit score of at least 500. 
• Interest rates for borrowers with a credit score of 580 or lower might be higher than rates for borrowers with scores above 580. 

USDA 

• The United States Department of Agriculture (USDA) is for families and individuals that are in suburban and rural areas. Buyers with a credit score of 640 or higher are more likely to receive this loan. 
• USDA loans are a good option for buyers looking for a zero-down payment option. 

VA 

• The US Department of Verteran’s Affairs provides home buyers assistance with a VA loan. This loan is only for active members, veterans, and spouses of deceased veterans of the armed forces. 
• VA loans typically have competitive rates, and can offer loans without down payments or insurance on the mortgage. This loan is usually only for buyers with a credit score of 640 or higher. 

Conventional Mortgage Loans

• Conventional mortgage loans aren’t a loan that is from the federal government. Private lenders provide the loans. 
• Fannie Mae and Freddie Mac created these loans with requirements that each must meet. 
• Conventional mortgage loans allow the buyer to discontinue or avoid using mortgage insurance on the home, with the stipulation that they put 20% down on the home. 

Kansas State Loan

There is only one loan offered by the state of Kansas to first-time home buyers. 

Kansas First-Time Homebuyer Program 

• This loan is for buyers who haven’t owned a home in the past three years, so people who owned a home three years ago but haven’t for three years are eligible for this loan again.
• A good option for buyers with low incomes, typically low to moderate income families. 
• This loan does NOT apply to borrowers in – Kansas City, Wichita, Johnson County or Topeka. This makes the loan hard for people to qualify for. 
• This loan is offered from 15 to 20 percent of a home’s purchase price. 
• However, the buyer must put in 2% of the purchase price with their own money.