Overland Park KS Homes for sale & Johnson County Real Estate Blog: June 2015

Johnson County Kansas Housing Assistance Program

****** For Imeddiate Release *****

Johnson County Housing Services has received new funds from (HUD)Johnson County Kansas Housing Assistance The Department of Housing and Urban Development. Eligible home buyers can receive up to $10,000 in down payment and closing cost assistance.

We are currently accepting applications for home buyers wishing to qualify for this program. email info@russellhometeam.com or call 913-266-5828 to set up a time to apply in person.

 

Read the full release and eligibility requirements:

The Johnson County Housing Services Homebuyer Assistance Program is designed to assist low-to-moderate income Johnson County residents or persons who have been employed for at least two consecutive years in Johnson County with down payment/closing cost assistance towards the purchase of a home. The Program is made possible through the HOME Investment Partnership grant which is awarded to Johnson County Housing Services by the United States Department of Housing and Urban Development.


 

Eligibility Requirements:

  • Household income has to be less than the following income limits for household size based on gross income. The following income limits are based on HUD's published median income guidelines for the Kansas City Metropolitan area (MSA: Kansas City, MO-KS):

    Household Size  |  Income Limit

  • 1 person | $41,100
  • 2 person | $46,950
  • 3 person | $52,800
  • 4 person | $58,650
  • 5 person | $63,350
  • 6 person | $68,050
  • 7 person | $72,750
  • 8 person | $77,450
     
  • Intends to own and live in the newly purchased home for at least five (5) years as principal place of residence.  If the house is sold within the first five (5) years, the homebuyer will be responsible for repayment of the pro-rated balance of HOME funds (homebuyer's assistance). The rate of forgiveness is 20% each year for five (5) years using a full calendar year. For example, if you purchased a home on 9/21/13 you would not be completely forgiven of the debt until 9/21/18. If the homeowner does not sell the house within this time, the deferred loan will be completely forgiven.
  • Mandatory homebuyer education training provided by a HUD approved counseling agency. This training may not be completed on a computer and must meet a minimum of 4 hours in length as well as provide a Certificate of Completion. Reasonable accommodations can be made for those with accessibility issues. 
  • Purchased home must be used as the principal place of residence. (Person receiving assistance must live at the residence purchased.)
  • If you currently own a property, it must be sold before the final approval of assistance is granted.
  • Must carry homeowner insurance equal to or more than the value of the property plus the Homebuyer's Assistance amount and provide documentation upon renewal period for the duration of the affordability period to Johnson County Housing Services.
  • The homeowner/applicant must occupy the home within 30 days of loan closing.
  • Buyer must not have more than 30% liquid assets or equity transfer of total purchase price of home;
  • Must provide a down payment investment towards purchase price of home that is equal to 1 percent of sales price or $500, whichever is greater.
  • Total House Payment - PITI (Payment, Interest, Taxes and Insurance) plus recurring debt cannot exceed 38% of gross income.
  • Only documented income will be used to determine the maximum purchase price of a home by a participant.

Johnson County Housing Services reserves the right to deny funding to any applicant whose income, debt, credit, etc, do not meet our local requirements.


 

What are the program features?

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 amount to be determined at Johnson County Housing Services' discretion).

The home must be purchased in Johnson County, Kansas.

The home must be inspected by Johnson County Housing Rehabilitation Specialist and pass Housing Quality Standards. (This does not replace a mechanical, electrical, or termite inspection which is not mandatory, but highly encouraged. )

An environmental review is performed on the potential home to be purchased upon submission of the address to the Johnson County Housing Services office. If the home is found to be in a flood zone, the home will be determined ineligible and the applicant would not qualify to receive down payment assistance for this purchase.

For any home built before 1978, a lead-based paint report must be submitted to Johnson County Housing Services with the real estate sales contract. This report must reflect either that lead-based paint was not present at the time of the inspection or that lead-based hazards were present but have been remediated and a lead clearance was received after the remediation took place. See Lead Brochure

Buyers of properties located within 2,500 feet of the Johnson County Executive Airport (the Airport Clear Zone) will be required to execute an affidavit acknowledging that they are aware of the proximity of the property to the airport.

Are Subordinations Allowed?

Subordination of Deferred Loan During Affordability Period:

  • Only in the case of imminent danger of foreclosure will the deferred loan be considered for subordination for refinancing during the 5 year affordability period. No other exceptions will be made to this policy.
  • Fixed Mortgage Rate (15 - 30 year term)
  • Interest rate cannot be more than 1 1/2 percent over FHA rate (Requirement for all lenders).
  • If the lender requires, participant must purchase Private Mortgage Insurance (PMI).
  • Purchase price must not exceed $195,000 on new construction. Purchase price must not exceed $161,000 on existing (not new construction) homes. These limits are subject to change in accordance with HUD guidelines.

What are eligible properties to purchase?

  • Single-Family Home (including 1-4 unit dwellings)
  • Condominium Units
  • Townhouses
  • Site Built Homes
  • Modular Homes

What can be covered with program funds?

  • Processing and Settlement Costs
  • Private Lender Original Fees
  • Credit Reports
  • Title Fees
  • Recording Fees
  • Appraisal Fees
  • Reduction of Principal Balance of Loan

What is the anticipated time frame I can expect?

From initial application to closing, plan on at least 3 months and this is if an eligible property to purchase is found relatively soon after approval for the Homebuyer Assistance Program.

The approval for the Homebuyer Assistance Program is good for six months from the date of the approval letter.

What can I do to help ensure the fastest processing of my application?

  • Provide email address to allow rapid communication
  • Provide human resource phone and fax numbers
  • Provide real estate agent contact information - Also inform agent as to pending application for the Homebuyer's Assistance Program
  • Provide lenders contact information - Also inform lender as to application for the Homebuyer's Assistance Program
  • Provide insurance agent contact information - Also inform agent as to pending application for the Homebuyer's Assistance Program

What are the steps for completing the Homebuyer Assistance Program?

 

  1. Attend Homebuyer Education Class from a HUD approved counseling agency. The class must be at least 4 hours long in a physical location and provide you with a certificate of completion at the conclusion of the class. Internet classes are not allowed. Reasonable accommodations can be made for those with accessibility issues.Get pre-approved for a mortgage with a lender. Any lender can participate with our program.

     

  1. Begin looking for a home when you receive a Homebuyer Assistance approval letter.
     Upon completion of credit counseling with Johnson County Housing Services staff and receipt of Certificate of Completion of Homebuyer Education class from a HUD approved counseling agency, eligible participants will be given a Homebuyer Assistance approval letter. Participant may now begin looking for a home.

 

 Mike Russell is a REALTOR with Keller Williams Realty. Mike specializes in Johnson County Kansas Homes and Real Estate for sale. Mike is a tech savvy realtor with over 17 years experience. Did you enjoy Mike's Blog? Feel free to subscribe or join Mike on his Social Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...

Mike Russell & Associates can be reached at 913-266-5828 or MRussell@KW.com  or www.SearchjocoHomes.com

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Comment balloon 0 commentsMike Russell • June 03 2015 08:48AM
Johnson County Kansas Housing Assistance Program
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****** For Imeddiate Release ***** Johnson County Housing Services has received new funds from (HUD) The Department of Housing and Urban Development. Eligible home buyers can receive up to $10, 000 in down payment and closing cost assistance. We are… more