First Time Homebuyer

City of Liberal First Time Homebuyer Program

What is the First Time Homebuyer Program?

It is a soft second mortgage loan program to assist qualified low- and moderate income individuals with the purchase of their first home.  FTHB loan funds are to assist with down payment and/or closing costs.

What are the maximum income limits and FTHB loan amounts?

Households earning at or below 125% of area median income are eligible for $2,500 in assistance.

Household Size                                             125% of Median

          1                                                                $52,812

          2                                                                $60,312

          3                                                                $67,890

          4                                                                $75,390

          5                                                                $81,485

          6                                                                $87,500

          7                                                                $93,515

          8                                                                $99,531

What are the terms of the soft second mortgage?

  • The loan is a zero-interest, three year loan.  The borrower will continue to own and occupy the structure for a period of three (3) years after the date on the Soft Mortgage.
  • The borrower will continue to maintain the property in a proper manner so as to prevent substantial destruction of the improvements due to the negligence of Applicant; and upon breach of any of the aforesaid covenants.
  • Homeowner is responsible only to pay back funds if the home is sold or destroyed in a 36-month period. The sliding scale of the Soft Loan Agreement is as follows:

Year                                         % of Amount of Soft Loan

   1                                                         25-36/36ths

   2                                                        13-24/36ths

   3                                                          1-12/36ths

Are there any other requirements?

The application for the program must be turned in at least one month prior to closing the loan on the home.

  • Borrowers must attend a City approved FTHB Counseling Workshop.
  • The home purchased under the FTHB program must be the borrower’s principal place of residence; the property cannot be leased or rented during the term of the City loan.
  • Persons with ownership of any real estate assets are not eligible.
  • Funds are limited.  Assistance is provided on a first-come, first-served basis, as long as funds remain available.
  • Borrower must be a first time homebuyer, which is a household that has not owned a home within the past three years.  Borrowers must be able to qualify for a first mortgage from a mortgage lender. 
  • Homebuyers may purchase an existing single-family detached home, condominium, or townhouse located anywhere within the City of Liberal.
  • Mobile homes are not eligible for this program.  Modular homes must be on a permanent slab or basement foundation to qualify for the program.
  • Incomplete or inaccurate information during application process may result in funds being withdrawn anytime prior to closing.


  • City of Liberal
  • Housing & Community Development
  • 324 N. Kansas Avenue
  • Liberal, KS 67901
  • Phone:             620-626-2250
  • Fax:                 620-626-0589