- First Time Homebuyer
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
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
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- Incomplete or inaccurate information during application process may result in funds being withdrawn anytime prior to closing.
HOW TO CONTACT US:
- City of Liberal
- Housing & Community Development
- 324 N. Kansas Avenue
- Liberal, KS 67901
- Phone: 620-626-2250
- Fax: 620-626-0589