Purchasing your first home is an exciting journey, but saving for a down payment can often feel like a significant hurdle. Fortunately, there are several down payment assistance programs available to help first-time homebuyers in the Kansas City area. These programs are designed to make homeownership more accessible by providing financial support for down payments and closing costs.
Kansas Housing Resources Corporation (KHRC) First Time Homebuyer Program
The KHRC offers assistance to income-eligible Kansas households aiming to purchase their first home. Through this program, homebuyers can apply for a 0% interest loan covering 15% or 20% of the home’s purchase price. If the buyer remains in the home for 10 years, the loan is forgiven. Participants are required to invest between 1% and 10% of the sale price from their own funds. kshousingcorp.org
KansasDPA Program
The Kansas Down Payment Assistance Program (KansasDPA) is a statewide initiative offering homebuyers up to 5% of the loan amount in down payment and closing cost assistance through a grant. To qualify, applicants must have a minimum credit score of 640 and meet specific income and purchase price limits. Eligible property types include single-family detached homes, duplexes, condominiums, townhomes, and manufactured housing. kshap.org
Missouri Housing Development Commission (MHDC) Homebuyer Programs
For those looking to buy in Missouri, the MHDC provides three programs to assist homebuyers:
- First Place Loan Program: Offers down payment assistance to qualified first-time homebuyers and veterans.
- Next Step Program: Provides down payment assistance with higher income limits, available to both first-time and repeat homebuyers.
- Mortgage Credit Certificate: Offers a non-refundable federal tax credit to first-time homebuyers, reducing the amount of federal income tax owed each year.
These programs aim to make homeownership more affordable through affordable interest rates, down payment assistance, or tax credits. mhdc.com
City of Kansas City Employee Homeownership Assistance Program
In March 2024, Kansas City established an Employee Homeownership Assistance Program to support city employees in purchasing homes within city limits. The program offers up to 20% down payment assistance (not exceeding $30,000) and up to $5,000 for closing costs. Eligible employees must be first-time homebuyers, have at least five years of service, and meet other specified criteria. kcmo.gov
Additional Resources
Beyond these programs, organizations like Community Housing of Wyandotte County offer down payment and closing cost assistance to help individuals and families achieve homeownership in the Kansas City area. chwckck.org
Navigating the various down payment assistance options can be complex, but with the right resources and guidance, achieving homeownership is within reach. At Abby Powers & Company, we’re committed to helping you explore these opportunities and find the best solutions tailored to your needs. Feel free to reach out to us for personalized assistance on your path to owning a home in the Kansas City metro area.
