Down Payment Help in Kansas City
A lot of buyers think they need 20% down. Most don't. And depending on where you buy, there may be real money out there to help with your down payment and closing costs. Here's how it works on both sides of State Line, explained the way I'd explain it to my old 5th graders.
First, the three kinds of help
Almost every program fits into one of these. Knowing which one you're getting matters more than the dollar amount.
Free money
You never pay it back. These are the rarest.
Free if you stay
A second loan with no monthly payment that disappears over time. Sell or refinance early and you pay back what's left.
Help now, payments later
A second loan you pay back monthly. It gets you in the door sooner, but it adds to your monthly cost.
Buying on the Missouri side
The big one for Missouri buyers
- How much: a second loan equal to 4% of your mortgage, for down payment and closing costs
- How it's forgiven: stay in the home and keep the original loan 10 years and it's 100% forgiven. Nothing comes off in years 1 through 5, then it shrinks a little each month until year 10
- Who it's for: first time buyers (no home owned in the last 3 years) and qualified veterans. In certain targeted neighborhoods, you don't have to be a first time buyer
- The basics: 640 credit score or higher, income and price limits that depend on the county, and it has to be your main home
- Loan types: FHA, VA, USDA, or conventional, all 30 year fixed
Higher income limits
MHDC's other program has higher income limits than First Place. Ask your lender which one fits your income, because the rules on who gets the 4% are different.
Buying on the Kansas side
Big help, but only in certain areas
- How much: a 0% interest second loan for 15% or 20% of the purchase price, with no monthly payment
- How it's forgiven: stay in the home 10 years and it's forgiven. Sell sooner and you pay back the unused part
- Who it's for: first time buyers (or no home owned in 3 years) with household income at or below 80% of the area median
- You put in: at least 1% of the price from your own money. Inspection costs you pay count toward it
- Credit: no minimum score from KHRC, but you still need to qualify for a regular first mortgage
Where it works: it is not available in Johnson County or inside the city limits of Kansas City, Kansas. That leaves towns like Bonner Springs, Edwardsville, Basehor, Tonganoxie, Leavenworth, and Paola worth a look. Funding is first come, first served.
Saving up? Let Kansas help
Kansans can deduct up to $3,000 a year ($6,000 if married filing jointly) from state income taxes for money they put into a first time homebuyer savings account. The account needs to be open at least a year before you use it.
Options on either side
No income limit, no first time buyer rule
Some national programs offered through lenders, like the Chenoa Fund and the National Homebuyers Fund, can cover about 3.5% to 5% of the price on an FHA loan. Some versions are forgivable after a few years of on time payments. Others are paid back monthly. These can work in Johnson County, where the state program doesn't.
Zero down in some outer towns
Not down payment help exactly, but USDA loans need no down payment at all in eligible areas. Parts of the outer metro qualify, on both sides of the state line. There's a household income limit, and eligibility is checked address by address, so I'll look up any home you're curious about.
Let's run an example
Meet Sarah. She's a teacher (I may be a little biased) buying her first home in Blue Springs for $250,000 with an FHA loan and MHDC First Place. These are example numbers, not a quote.
| Home price | $250,000 |
| FHA down payment (3.5%) | $8,750 |
| Loan amount with FHA upfront insurance | about $245,500 |
| First Place help (4% of the loan) | about $9,800 |
What that means: the help covers her whole down payment, with about $1,000 left over toward closing costs. Instead of saving for years, she can buy now.
The catch, in plain English: if Sarah stays 10 years, she owes nothing back. If she sells after 7 years, 2 of the 5 "shrinking" years have passed, so 40% is forgiven and she'd pay back about $5,900 from her sale.
The fine print people miss
- Refinancing counts like selling. If rates drop and you refinance early, the unforgiven part comes due.
- Money can run out. Some programs fund first come, first served.
- Not every lender offers every program. You need a lender approved for the one you want.
- Limits change. Income limits, price limits, and rates update often, so always confirm the current numbers.
- Be careful with "free grant" ads. There's no federal down payment grant you can apply for on your own right now. Real help runs through state programs and approved lenders.
How to get started
- Talk with me first. We'll figure out which side of State Line and which towns make sense for you, since that decides which programs you can use.
- Get approved with a lender who offers these programs. They'll check your income, credit, and which help you qualify for.
- Shop in the right price range. I'll keep your search inside the program limits so there are no surprises.
- Close and get the keys. Then stay put long enough to let that help turn into free money.
Not sure what you qualify for?
Book a free 20 minute call and I'll walk you through it, no pressure. Or start with my free KC Home Game Plan.
Last updated November 2026. Program details come from the Missouri Housing Development Commission (MHDC), the Kansas Housing Resources Corporation (KHRC), and the Kansas State Treasurer, and they change often. This page is general information, not a loan offer or financial advice. I'm a Realtor, not a lender, so always confirm current terms, limits, and rates with an approved lender.