The Ins-and-Outs of First Time Homeowner’s Assistance

You’ve got the car, you’ve settled into your job and you feel like you’re finally ready to settle down.  What’s next?  Now it’s time to buy a house!  Owning a home for the first time a rewarding, yet complicated process that can be drastically simplified through first time homeowner’s assistance.  But what is this assistance all about, who qualifies and how can you get it?  Team Ohlde is here to help you investigate.

What’s First Time Homeowner’s Assistance All About?

First time homebuyer programs, such as The Johnson County Housing Services First Time Homebuyer Program, are designed to assist low-to-moderate income people who have been employed for at least two years in a certain area with the purchase of a home.  Programs such as Johnson Country’s are made possible through a HOME grant, which are given by the US Department of Housing and Urban Development.

Who Can Get It?

If you’re interested in first time homeowner’s assistance, you must fit in the following four categories:

1. Has never owned a house, or as not owned a house in the past 3 years OR
2. Is a single parent who is unmarried or legally separator with one or more minor children for whom the individual has custody or join custody, or is pregnant
3. Is a displaced homemaker who is an adult who has not worked full-time for a full year in the labor force for a number of years, but has, during such years, worked primarily without remuneration to care for the home and family; and is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment
4. Has an income less than the income limits displayed on this chart.

What’s Required?

If you’re interested in a first time homeowner’s assistance, you not only have the fit the bill, but you have to be dedicated too.  It’s not an easy process, but it could be worth it in the end.  The program will require the homeowner to:

1. Live in the newly purchased home for at least five years
2. Complete mandatory homeowner training including homeownership counseling sessions
3. Use the home as a primary resident
4. Occupy the home within 30 days of loan closing
5. Have more than 30% liquid assets of total purchase price of home
6. Have a down payment equal to 1% of the sales price (or $500)
7. Stay under 41% of gross income for Total House Payment (PITI) plus recurring debt

What Does the Program Entail?

The program seems a little complicated at first.  We’ll help you break it down to make it a bit simpler.  Each first time homeowner’s assistance program is different, so we will use Johnson County as a primary example:

• Down payment and closing cost assistance not to exceed $10,000 in the form of a deferred loan will be provided on behalf of the qualified participant. 
• The home must be purchased in Johnson County.
• The home must be inspected by Johnson County Housing Rehabilitation Specialist and pass all Housing Quality Standards.
• The home must go under an environmental review by the Johnson County Housing Services office.
• For homes build before 1978, a lead-based paint report must be submitted to Johnson County Housing Services with the real estate sales contract.
• Buyers of properties located within 2,500 feet of the Johnson County Executive Airport are required to execute an affidavit acknowledging that they are aware of the proximity to the airport.
• A fixed mortgage rate of 15-30 year term.
• Interested rate cannot be more than 1.5% over FHA rate.
• Participant must purchase Private Mortgage Insurance (PMI) – if lender requires.
• Purchase price must not exceed $204,250 (HUD guidelines). 

So...What Can I Get!?

There are a lot of options for first-time homeowners!  These include single-family homes, condominium units, townhouses, cooperative units and manufactured houses with lots. 

Sign Me Up! How Can I Get Started?

To apply for a first time homeowners assistance program in Johnson County, please click here and fill out the application and send to:

Johnson County Housing Services

12425 West 87th Street Parkway, Suite 200

Lenexa, KS 66215

Good luck with the purchase of your first home!  Be sure to learn more at http://hsa.jocogov.org/housing/fthba.shtml#a.  To learn even more about first time homeowner’s assistance or to start your home search right now, be sure to contact Team Ohlde and visit us online at http://www.overlandparkhomesbytoddohlde.com.