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

Homebuyer Programs in Manhattan, KS (2026)

Population: 54,239 | Median home price: $280,000 | Est. closing costs: $5,500 - $8,500

Skyline of Manhattan, KS

Manhattan is a Northeast Kansas college town anchored by Kansas State University, with Fort Riley to the west and the Flint Hills to the south. The median home price in Manhattan is approximately $280,000, and while the city does not currently fund a direct down payment assistance program for buyers, qualified first-time homebuyers can stack significant help from state and local sources. The KHRC First-Time Homebuyer Program offers a 0% interest second mortgage for 15-20% of the purchase price (up to $40,000) that is forgiven after 10 years of owner-occupancy, and the Kansas Housing Assistance Program (KHAP) adds up to 4% in cash assistance toward down payment and closing costs. Habitat for Humanity of the Northern Flint Hills serves Riley County buyers with affordable mortgages, and Interfaith Housing & Community Services administers a CASH IDA matched-savings program that turns a buyer's $3,000 in savings into $9,000 toward closing. Combined with federal FHA, VA, and USDA loan programs, these resources can dramatically reduce out-of-pocket costs for Manhattan 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

Habitat for Humanity of the Northern Flint Hills
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with no profit and 0% interest (mortgage payments capped at 30% of gross monthly income)
First-time only:
No
Interfaith CASH IDA Program
Type:
Grant
Amount:
Up to $9,000 total ($3,000 saved by buyer + $6,000 in 2:1 matching funds)
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. The KHRC First-Time Homebuyer Program is open to households earning at or below 80% of Riley County's area median income, and the program is available throughout Manhattan (it is excluded only in Johnson County and the cities of Kansas City, Lawrence, Topeka, and Wichita).

Step 2:

Complete homebuyer education. Housing and Credit Counseling, Inc. has a Manhattan office and is a HUD-approved provider; their pre-purchase counseling is free, and most state and nonprofit programs require this certificate.

Step 3:

Contact a local housing partner. Habitat for Humanity of the Northern Flint Hills can be reached at (785) 537-7545 or info@habitatflinthills.org for affordable mortgage opportunities. Interfaith Housing & Community Services can walk you through the CASH IDA matched-savings program.

Step 4:

Get pre-approved for a mortgage. Use the KHRC participating lender search to find a Riley County lender that originates the KHRC First-Time Homebuyer second mortgage and KHAP cash assistance.

Step 5:

Find a home within program limits. The KHRC program has purchase price limits set by county and updated annually; verify the current limit with your KHRC lender before making an offer.

Step 6:

Submit your application. State assistance is funded year-round but reserved on a first-come, first-served basis; closing typically takes 30 to 45 days once your assistance reservation is approved.

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