area. HLG helps financial institutions guarantee the gap under a loan used for land and building purchases, renovation, and new construction costs capitalized or financed within Kansas counties that have a population of less than 10,000. HLG guarantees the amount of the loan that exceeds 80% of the appraised value of the home, up to 125% of the appraised value of the home subject to the loan. Each guaranteed amount shall not exceed $100,000. Financial institutions that serve rural homebuyers request loan guarantee funds from KHRC. Eligible institutions include banks, trust companies, savings banks, credit unions, savings and loan associations, or any other lending institution. • First Time Homebuyer Program (FTHB): KHRC helps enable the dream of homeownership by offering first-time buyers assistance with down payments and closing costs. KHRC collaborates with a network of participating lenders across the state, allowing homebuyers to apply for a 0% interest loan in the amount of 15% or 20% of the home’s purchase price. If the homebuyer remains in the home for 10 years, the loan is forgiven! The federally funded program serves Kansans who have a median income at or below 80% of their area. Homebuyers must make an investment of 2% but no more than 10% of the sale price from their own funds. The program serves Kansans across the state with the exception of those in Johnson County, Kansas City, Lawrence, Topeka, and Wichita. These areas administer their own federal funds, which may or may not be used for homebuyer assistance. Bankers and lenders also played a crucial role in providing pandemic relief to homeowners in financial distress. The Kansas Homeowner Assistance Fund (KHAF) helps qualifying Kansans get current on their mortgages and property taxes and avoid foreclosure, providing assistance with mortgage reinstatement, mortgage payments, property taxes and charges, and utility and internet/broadband services. Assistance is paid directly to lenders, mortgage servicers, and service providers, who apply the funds to the homeowner’s account. Launched in April 2022, the program has expended nearly all available funds and is now in Final Funding, the first of three closure phases. In less than a year, this crucial partnership with financial institutions has already provided nearly $37 million to 3400 Kansas families. Housing intersects so many aspects of our society, from jobs to families and education to health care. KHRC relishes our role in connecting those dots, but lenders are integral to the finished picture … Home. Will you join us? To find out more, please visit kshousingcorp.org. Purchasing a home is often the most important investment a Kansan will make, and one of the most effective ways families can build wealth and prosperity. Pub. 12 2023 Issue 1 9
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