TOPEKA, Kan. (KSNW) — A new program hopes to make it easier for people to purchase a home in rural communities in Kansas.
The Home Loan Guarantee for Rural Kansas is a new initiative from the Kansas Housing Resources Corporation. The program is designed to help existing and prospective homeowners in rural counties finance home loans for land and building purchases, renovations, or new construction costs.
The goal of the program is to close the “appraisal gap.” That is the gap where the costs of new construction or renovation far exceed the appraised value of the property, even after the work is completed.
The program guarantees a portion of the loan above 80% and up to 125% of the home’s appraised value and must not exceed $100,000 per home. Eligible financial institutions serving rural counties can submit requests to the HLG program for a guarantee on a first-come, first-verified basis.
“Our rural communities must have adequate housing to prosper and thrive,” Ryan Vincent, KHRC executive director, said in a news release. “Communities cannot attract jobs or retain workers and families without quality, affordable homes. We are grateful to our state leaders for allocating these crucial funds to help rural Kansans achieve and preserve the dream of homeownership.”
Rural counties are defined as counties having a population of 10,000 or fewer people. Kansas Rural Home Loan Guarantee Act is providing $2 million to fund the program.
Click here to see if your county qualifies and to learn more about the program.