First-Time Homebuyer Programs

Buying your first home in Overland Park, KS, is an exciting and strategic step toward building wealth in a suburb consistently ranked among the best places to live in the U.S. Because median home prices are competitive, first-time homebuyer programs are essential tools that level the playing field with options for 0% down, low rates, and targeted assistance to tackle rising costs.

At Metropolitan Mortgage, we specialize in helping first-timers navigate the financial landscape of Johnson County. This guide focuses entirely on the programs, financial planning, and eligibility requirements that make homeownership possible for new buyers.

💰 Top First-Time Homebuyer Loan Programs in Overland Park

These programs are the financial foundation for most first-time buyers, offering competitive terms and flexibility on down payments and credit scores. We’ve refreshed this table with November 2025 financial parameters for Johnson County to show you the best options to secure your first home.

Program Down Payment Min. Credit Score Est. Rate (30-Yr Fixed) Income Limit (Johnson Co.) Standout Benefit
FHA Loans 3.5% 620 5.5%-6.0% None Flexible on credit/debt; ideal for imperfect scores
VA Loans (Veterans/Military) 0% Varies 5.5%-5.875% None No down payment + no PMI; funding fee often waivable
USDA Loans 0% Ability to repay 6.1–6.5% ~$112,450 (family of 4) 100% financing for eligible suburbs; low monthly mortgage insurance
Kansas Housing Resources Corporation Varies + assistance Lender-specific Market rate ~$85,800–$107,250 Up to 20% down payment assistance (often forgivable)
Conventional Loans (HomeReady / Home Possible) 3% 620 5.99%–6.75% 80% AMI ($85,800) Low private mortgage insurance (PMI) and possible grants up to $10,000

Curious about live rates and how these programs stack? Compare options or chat with our Overland Park experts.

🎯 Financial Planning & Eligibility Essentials

A major benefit of focusing on first-time buyer programs is the flexibility they offer around credit, income, and cash reserves. Knowing where you stand before you apply is the first step to successful homeownership.

Eligibility Requirements at a Glance

You are typically a “first-time buyer” if you have not owned a home in the last three years. Core criteria for qualifying in Johnson County often include:

  • Credit Score: Minimum of 620 for most programs (VA and FHA are the most flexible). Improving your score by even 20 points can significantly lower your interest rate.

  • Income Limits: Many assistance programs (like KHRC and HomeReady) have income caps, typically under 80–115% of the Area Median Income (AMI)—around $85,800–$107,250 for a family of four in Johnson County.

  • Debt-to-Income (DTI): Your total monthly debt payments (including the new mortgage) should generally be under 45% of your gross monthly income. This is the primary hurdle for many first-time buyers.

  • Education: Some state and assistance programs require you to complete a quick, HUD-approved course to ensure you understand the responsibilities of homeownership.

Key Benefits of Using First-Time Buyer Programs

These programs are designed to solve the two biggest hurdles for first-time buyers: the down payment and closing costs.

  1. Slash Upfront Costs: Use a VA or USDA loan for 0% down, or FHA/Conventional for only 3–3.5% down. This keeps thousands of dollars in your pocket for moving expenses or home repairs.

  2. Unlock Forgivable Aid: Take advantage of Down Payment Assistance (DPA) grants and second loans from the Kansas Housing Resources Corporation (KHRC), which can often cover both the down payment and closing costs.

  3. Build Wealth Faster: By securing low-cost financing and tapping into local annual appreciation, you start building equity immediately.

  4. Lower Monthly Payments: FHA and VA loans often feature more competitive interest rates than conventional loans for borrowers with lower credit scores.

🏡 Your First-Time Buyer Application Path

We streamline the process by matching your financial profile to the most advantageous programs for your Overland Park purchase.

  1. Assess Your Readiness: Use our affordability tool to understand your purchasing power and determine which DTI and income limits apply to your situation.

  2. Secure Program Pre-Approval: Get a lender-backed pre-approval letter that specifically mentions your eligibility for a program like FHA or KHRC assistance. This gives you a competitive edge when making an offer. We provide same-day pre-approval.

  3. Gather Required Documentation: First-time buyer programs often require slightly more financial documentation, including two years of tax returns, pay stubs, and bank statements.

  4. Work With a Local Program Expert: National lenders often struggle with the nuances of KHRC rules or local county income limits. Choosing a local Overland Park lender ensures your application is processed correctly and closed on time.

For a comprehensive guide on the entire purchase process, from working with an agent to closing day, see our Overland Park How to Buy a Home resource.

🗣️ Frequently Asked Questions (First-Time Buyer Focus)

Addressing the specific financial concerns of first-time homebuyers:

  • Can I qualify if I owned a home more than three years ago? Yes—the 3-year clock resets eligibility for most first-time buyer programs, including KHRC.

  • What’s the lowest down payment possible? 0% down is possible via VA/USDA. 3% down is the minimum for many Conventional aid programs (HomeReady).

  • Are there grants for closing costs? Yes—Down Payment Assistance (DPA) from programs like KHRC can cover both the down payment and closing costs. We also often stack lender credits to minimize out-of-pocket expenses.

  • How fast can I get pre-approved? Same day, every day—upload your documents online for instant, program-specific pre-approval results.

Work With the #1 Rated Mortgage Lender in Overland Park

The Overland Park market rewards the prepared. To pair your new program knowledge with the right location, explore the Best Neighborhoods in Overland Park.

For general loan program details not specific to first-time buyers, or to start your application, see how we compare to the best mortgage lenders overland park.

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