See programs you qualify for

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

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

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

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

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

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

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

Program Name	Type	Amount	First-Time Only	Details
Tenants to Homeowners (Lawrence Community Land Trust)	Forgivable Loan	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.	Yes	View →

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

Free eligibility check

11 programs available in Lawrence. See which ones you qualify for.

Free
No credit check
Takes 2 minutes

Are you a first-time homebuyer?

Yes No Not sure

Question 1 of 6

housebuyerguides

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

How much down payment assistance can I get in Lawrence?+

Lawrence buyers eligible for Tenants to Homeowners (≤80% AMI) get the strongest deal: an average $50,000 price reduction on the home itself, plus down payment as low as 5% of annual gross income (often under $2,000) and covered closing costs (~$4,500). Stack KHAP's up to 4% cash assistance (about $11,600 on a $290,000 home) for additional help. Combined, eligible buyers can effectively get $50,000+ in subsidy plus minimal cash to close.

Why doesn't the KHRC First-Time Homebuyer Program work in Lawrence?+

The Kansas Housing Resources Corporation (KHRC) First-Time Homebuyer Program — which offers 15-20% of purchase price as a forgivable second loan up to $40,000 — explicitly excludes Lawrence, along with Wichita, Topeka, Kansas City, and Johnson County. KHRC reasons that Lawrence administers its own federal HUD funds locally. Lawrence buyers should focus on Tenants to Homeowners, KHAP, and federal programs.

What is Tenants to Homeowners?+

Tenants to Homeowners (TTH) is a Lawrence Community Land Trust nonprofit founded in 1992. It builds new homes and rehabilitates older homes, then sells them to qualifying buyers (≤80% AMI) for approximately $50,000 below market appraisal value. In exchange, buyers agree to resale price restrictions that keep the home affordable for the next eligible buyer. Buyers need only 5% of their annual gross income as down payment, and closing costs (~$4,500) are covered for first-time buyers. TTH has helped over 350 families become homeowners. Contact: 785-842-5494 / 2518 Ridge Ct., #103.

Do I have to be a first-time homebuyer?+

Tenants to Homeowners targets first-time and low- to moderate-income buyers (≤80% AMI) and has resale restrictions that keep the property affordable. The Kansas Housing Assistance Program (KHAP) requires first-time buyer status unless purchasing in a Federally Designated Targeted Area, and the Kansas First-Time Home Buyer Savings Account also requires first-time status. Federal loans like FHA and conventional 3% down options do not require first-time buyer status.

What homebuyer education is required?+

Tenants to Homeowners requires attendance at a homebuyer workshop and budget and/or credit counseling from Housing and Credit Counseling Inc. (HCCI) — 785-234-0217 — prior to purchase. HCCI is a HUD-approved counseling agency, so its courses also satisfy KHAP-participating lender requirements and most federal loan programs. TTH itself reaches more than 400 people annually through homebuyer education workshops.

Can I afford a typical Lawrence home with assistance?+

Lawrence's typical home value is around $290,000, which is high relative to the rest of Kansas due to KU-driven demand. Without Tenants to Homeowners, a buyer needs 3-3.5% down (~$9,000-$10,000 with FHA) plus closing costs (~$6,000-$8,500). With TTH eligibility and the $50,000 subsidy, the same home effectively costs around $240,000 with under $2,000 down — by far the most accessible path. KHAP's 4% cash assistance helps buyers who don't qualify for TTH or want a non-CLT home.

Free eligibility check

Buying a home in Lawrence? 11 programs could help.

Free
No credit check
Takes 2 minutes

How soon are you looking to buy?

Within 30 days 1–3 months 3–6 months 6–12 months Just researching