Income eligible households may apply for the First-time Homebuyer Program Grant. Eligible borrowers can use the forgivable loan (up to $7,500) to greatly reduce the out of pocket expenses associated with buying a home. If you live in the house for 5 years, the grant is fully forgivable. This program is limited to available funds administered by the FHLBank of Topeka.
- Homebuyer must be first-time homebuyer and may not own or be an investor in another residence.
- Home must be located in Kansas.
- Maximum household income limits apply.
- Homeowner must contribute a minimum $500 down payment. In certain situations, sweat equity may be substituted for the $500 down payment.
- Cash back to a household at closing on the mortgage loan may not exceed $250. Any amount in excess of $250 must be used to reduce the principal of the mortgage loan.
- Homebuyers must complete a homebuyer education program approved by designated state organizations. See the list of approved homebuyer education providers.
- Households must agree to retain the home for 5 years.
- All borrowers must qualify for first time homebuyer, not just one.
First-Time Homebuyer Definition
First-time Homebuyer – An individual who wishes to purchase a home that will be his/her primary residence who meets any one of the following criteria:
- An individual or co-applicants who have had no ownership in a principal residence during the prior three-year period ending on the date of purchase of the property.
- A divorced or legally separated individual who has only owned a principal residence with a former spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation. Certain restrictions may apply.