Yes… and you may have more options than you think.
One of the biggest misconceptions we hear from first-time homebuyers in Topeka is that they need to save 20% before they can buy a house.
For many buyers, that simply isn’t true.
Depending on your income, credit, loan type, and the home you’re purchasing, you may qualify for down payment assistance, closing-cost assistance, low-down-payment financing, or a combination of these options.
At Team Wiseman, we work with buyers throughout Topeka, Shawnee County, and Northeast Kansas, and one of the first things we encourage first-time buyers to do is find out what programs are actually available to them before assuming they don’t have enough money to buy.
What Is Down Payment Assistance?
Down payment assistance, often called DPA, is designed to help eligible homebuyers cover some of the upfront cost of purchasing a home.
Depending on the program, assistance may come in the form of:
- A grant that does not have to be repaid
- A forgivable second mortgage
- A deferred-payment second mortgage
- A low- or zero-interest second loan
- Assistance toward closing costs
- Lender or community-based homebuyer programs
Some programs provide enough assistance to cover most or all of a buyer’s required down payment, while others can also help with closing costs.
The important thing to understand is that there isn’t just one first-time homebuyer program.
Different programs have different income limits, credit requirements, property restrictions, loan requirements, and repayment terms.
How Much Do First-Time Buyers Actually Need Down?
It may be much less than you think.
For example, conventional financing can sometimes require as little as 3% down, while FHA financing generally allows qualified borrowers to purchase with 3.5% down.
Eligible VA and USDA borrowers may have zero-down-payment options.
Then there are down payment assistance programs that may help an eligible buyer cover some or all of the down payment required by the primary mortgage.
That means the amount you have in savings doesn’t necessarily tell you whether you’re ready to buy.
A lender needs to look at the entire picture.
What Down Payment Assistance Is Available in Topeka?
Buyers purchasing in Topeka may have access to several types of assistance, including Kansas programs, local programs, lender-specific programs, and certain nationwide down payment assistance programs available to Kansas borrowers.
This is where working with a lender who regularly handles assistance programs becomes especially important.
Not every lender participates in every program.
A buyer could speak with one lender and be told there are very few options, while another lender may have access to additional programs that fit that buyer’s situation.
That is why we encourage our buyers to ask specifically:
“What down payment and closing-cost assistance programs do you currently offer for a home being purchased in Topeka, Kansas?”
Don’t stop at simply asking whether a lender offers “first-time homebuyer loans.”
Do You Have to Be a First-Time Buyer?
Not always.
Even the term “first-time homebuyer” can be misleading.
Many programs consider you a first-time buyer if you haven’t owned a primary residence during the previous three years, even if you owned a home before that.
Other assistance programs may not require first-time buyer status at all.
So if you’ve owned a home previously, don’t automatically assume you won’t qualify.
What Determines Whether You Qualify?
Every program is different, but lenders commonly look at factors such as:
- Household or borrower income
- Credit score
- Debt-to-income ratio
- Employment and income history
- Purchase price
- Property location
- Loan type
- Whether the home will be your primary residence
- How much money you have available for the transaction
Some programs also require completion of an approved homebuyer education course.
Income limits are particularly important. Many assistance programs are designed for low- to moderate-income households, but the limits can be higher than buyers expect.
It’s worth checking before assuming you make too much money.
Why the Property’s Location Matters
This is especially important when you’re looking around Topeka and Shawnee County.
Assistance programs can have geographic restrictions, and eligibility may change depending on whether a property is inside Topeka city limits, elsewhere in Shawnee County, or in a surrounding community.
That means two similar homes only a few miles apart could potentially have different financing or assistance options available.
If you’re considering areas such as Topeka, Silver Lake, Auburn, or other nearby communities, let your lender know where you’re searching before you make an offer.
Can You Combine Down Payment Assistance With FHA or Conventional Financing?
Sometimes, yes.
Certain assistance programs are specifically designed to work alongside FHA or conventional mortgages. Others have restrictions on which first mortgage can be used.
This is one reason it’s important to investigate assistance before you’re under contract.
You don’t want to find the perfect house and then discover that the lender or loan you’ve chosen doesn’t work with the assistance program you wanted to use.
What About Seller-Paid Closing Costs?
Down payment assistance isn’t the only tool available.
Depending on the loan program, property, appraisal, market conditions, and terms of the transaction, your REALTOR® may also be able to negotiate for the seller to contribute toward allowable buyer closing costs.
For the right transaction, a buyer may be able to combine a low-down-payment mortgage, eligible assistance, and negotiated seller concessions to significantly reduce the amount of cash needed at closing.
Every transaction is different, so this needs to be structured correctly with your lender and real estate agent.
Don’t Make These First-Time Buyer Mistakes
One of the biggest mistakes is waiting until you’ve saved a huge down payment before even speaking with a lender.
Another is assuming you won’t qualify because of your income or credit score.
And don’t assume that because one lender doesn’t offer a particular assistance program, the program doesn’t exist.
Start by finding out exactly where you stand.
You may discover that you’re closer to homeownership than you thought… or you’ll leave the conversation knowing exactly what you need to work on to get there.
Start With the Numbers, Not the House
Before spending weekends scrolling through listings and touring homes, figure out your financing.
A good first step is to:
- Speak with a lender who offers multiple first-time buyer and down payment assistance options.
- Find out what purchase price you’re comfortable with… not just the maximum amount you’re approved for.
- Ask how much cash you’ll realistically need for your down payment, closing costs, inspections, appraisal, and other expenses.
- Get pre-approved.
- Then start looking for homes that fit both your lifestyle and your financing.
That puts you in a much stronger position when the right property comes along.
Buying Your First Home in Topeka? Team Wiseman Can Help.
You don’t need to understand every mortgage program before you start looking for a home. That’s what your real estate and lending professionals are there for.
Team Wiseman, powered by Platinum Realty, helps buyers throughout Topeka, Shawnee County, Northeast Kansas, and the Kansas City Metro navigate the homebuying process from the first conversation through closing.
We’ll help you understand the process, connect you with lenders who can evaluate available financing and assistance options, and help you find a home that makes sense for your budget.
Wondering if you could buy a home right now?
Reach out to Team Wiseman for a no-pressure first-time homebuyer conversation.
Even if you’re not ready today, we’ll help you figure out what your next step should be.
Down payment assistance programs, loan guidelines, income limits, interest rates, and eligibility requirements can change. Program availability is determined by the applicable program administrator and participating lender. Team Wiseman and Platinum Realty are not mortgage lenders and do not determine financing eligibility.