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By Tyler Thompson · Licensed Real Estate Agent · Updated May 6, 2026

Homebuyer Programs in Lawrence, KS (2026)

Population: 96,051 | Median home price: $290,000 | Est. closing costs: $6,000 - $8,500

Skyline of Lawrence, KS

Lawrence is the seat of Douglas County and home to the University of Kansas, with a population of about 96,000 and a typical home value around $290,000 — making it one of the more expensive smaller Kansas markets driven by KU demand. Lawrence is excluded from the KHRC First-Time Homebuyer Program because the city administers its own federal HUD funds. The standout local resource is Tenants to Homeowners (TTH), a Lawrence Community Land Trust nonprofit that has helped more than 350 families become homeowners since 1992. TTH sells homes at an average $50,000 below market value, requires only 5% of annual gross income as a down payment, and covers closing costs (~$4,500) for first-time buyers. The Kansas Housing Assistance Program (up to 4% cash assistance), the Kansas First-Time Home Buyer Savings Account, and federal loans (FHA, VA, USDA, HomeReady) round out the assistance options for Lawrence buyers.

State Programs in Kansas

Kansas First-Time Home Buyer Savings Account
Type:
Tax Credit
Amount:
State income tax deduction up to $3,000 individual / $6,000 joint per year (lifetime cap $24,000 / $48,000)
First-time only:
Yes
Kansas Housing Assistance Program (KHAP)
Type:
Grant
Amount:
Up to 4% cash assistance (3% option for buyers with 640-659 credit scores)
First-time only:
Yes
KHRC First-Time Homebuyer Program
Type:
Forgivable Loan
Amount:
15-20% of purchase price (up to $40,000)
First-time only:
Yes

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Tenants to Homeowners (Lawrence Community Land Trust)
Type:
Forgivable Loan
Amount:
Average $50,000 price reduction (subsidy) on home purchase. Down payment as low as 5% of annual gross income. Closing costs (~$4,500) covered for first-time buyers.
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. Tenants to Homeowners and most Lawrence-area assistance targets buyers earning less than 80% of HUD-determined area median income for Douglas County. Most programs require first-time buyer status (no homeownership in past 3 years).

Step 2:

Skip the KHRC First-Time Homebuyer Program. Lawrence is excluded because the city administers its own federal HUD funds. Focus on Tenants to Homeowners and KHAP.

Step 3:

Complete homebuyer education. Tenants to Homeowners requires a homebuyer workshop plus budget and/or credit counseling from Housing and Credit Counseling Inc. (785-234-0217) before purchase. HCCI is a HUD-approved counseling agency.

Step 4:

Apply for Tenants to Homeowners. Contact TTH at 785-842-5494 or visit tenants-to-homeowners.org. The Community Land Trust model sells homes at an average $50,000 below market value. Buyers only need 5% of their annual gross income as a down payment — for someone earning $31,000/year that's under $2,000. Closing costs (~$4,500) are covered for first-time buyers.

Step 5:

Get pre-approved with a KHAP-participating lender. Apply for a 30-year fixed-rate mortgage (FHA, VA, USDA RD, or Conventional) and stack KHAP's up to 4% cash assistance. Minimum 660 credit for full assistance, or 640-659 for 3% option.

Step 6:

Open a Kansas First-Time Home Buyer Savings Account. Designate the account using Schedule FTHB on your Kansas income tax return. Up to $3,000 individual / $6,000 joint per year deduction from KS state income tax.

Step 7:

Look at federal loan options. FHA (3.5% down, 580+ credit), VA (0% down for veterans), USDA RD (0% down in eligible parts of Douglas County), and HomeReady/Home Possible (3% down) all stack with most local programs.

Frequently Asked Questions

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