Ben and his wife, Adrienne, watched as their one-year-old son took his first steps in their very own home earlier this year. Their first home purchase was made possible through KHRC’s First Time Homebuyer down payment assistance program. For this family, the keys to homeownership came down to faith, credit, and a helpful mortgage lender.
Ben largely credits his mortgage lender, Elly Claussen of Mid America Bank in Lawrence, for helping the family reach this milestone. They had originally planned to secure a building loan to construct their own home. But Claussen suggested they wait to see if might qualify for First Time Homebuyer down payment assistance. “I can’t tell you how many hours Elly put forth in running numbers,” said Ben. She stayed in touch and would keep the couple informed of the next steps at each checkpoint. “The Lord used so many people in this whole process and gave us a house,” he said.
Ben recalls how, “Elly did a wonderful job of finding us the right budget, and then making sure we qualified.” The home needed some repairs and upgrades, but Claussen knew a good home renovator who eventually bought the house and fixed it up for the family. “And then we were able to qualify for the down payment assistance needed to buy the home ourselves,” said Ben. Around this same time, the value of Ben’s Roth IRA had grown substantially. He was able to withdraw some of these earnings with a minimal penalty since they were being used to purchase a first home. These funds allowed him to contribute just 2.6% of the total home purchase price out-of-pocket.
Before realizing their dream of homeownership, the couple spent about three years praying to find a home of their own. “We had good credit to start off with,” said Ben. “When we got married, I purchased a car, Adrienne purchased a car, and we made sure we were always current with the payments. We both had credit cards and we made sure they were always paid off.” Their credit rating helped them qualify for the First Time Homebuyer loan.
Once qualified, Ben and Adrienne enrolled in the program’s required homeownership and budgeting classes, which educated them on what to expect during the first couple of years owning a home. “You need to have some extra money, you know, just in case your water heater goes bad or something like that,” said Ben. Ben appreciates the financial stability homeownership brings, but he emphasizes “it’s also about growing equity inside a community.”
Ben can already see the long-term benefits of homeownership for his family. They enjoy the laid-back atmosphere of the Perry community. “It’s not quite country, and it’s not quite the middle of the city. You have the luxuries of the city without the traffic.” He says the 1600-square foot, 3-bedroom, 2-bath home with a full basement is a place where he and his family can grow and take root.
Prior to moving, Ben recalls the mental stress of living with others in the same building and being concerned about what’s happening next door. Now he enjoys a less stressful home life. “We don’t have to make sure the baby’s not crying because he’s going to wake up the neighbors. I don’t have to be conscious of that anymore because it’s mine.” And without the mental stress of living in an apartment, he says, “it’s allowed my wife and I to breathe and really enjoy each other’s company, along with our child.”
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Administered by Kansas Housing Resources Corporation (KHRC), the state’s First Time Homebuyer program helps income-eligible households with a down payment on a home purchase. To be eligible, applicants must be first time homebuyers or not have owned a home for three years and have a median income at or below 80% of their area. Each homebuyer must make an investment of 1% but no more than 10% of the sale price from their own funds. The program allows homebuyers to apply for a 0% interest loan in the amount of 15% or 20% of the purchase price of the home. The loan is forgiven if the buyer remains in the home for 10 years!
KHRC’s Home Loan Guarantee for Rural Kansas program helps rural homebuyers secure the gap between the cost of constructing or rehabilitating a home and its appraised value.
Kansas Housing Resources Corporation (KHRC) is a self-supporting, nonprofit, public corporation committed to helping Kansans access the safe, affordable housing they need and the dignity they deserve. KHRC serves as the state’s housing finance agency, administering essential housing and community programs to serve Kansans.
