Home Loan Guarantee for Rural Kansas
The Home Loan Guarantee for Rural Kansas (HLG) helps financial institutions guarantee the gap under a loan used for land and building purchases, renovation, and new construction costs that may be capitalized or financed within rural Kansas counties. HLG will guarantee the amount of the loan that exceeds 80% of the appraised value of the home, up to 125% of the appraised value of the home subject to the loan. Each amount of guarantee shall not exceed $100,000.
The Home Loan Guarantee for Rural Kansas serves financial institutions that serve existing and prospective homeowners in rural Kansas counties. Eligible financial institutions include banks, trust companies, savings banks, credit unions, savings and loan associations, or any other lending institution.
$2 Million in Non-Recourse Guaranty through the Kansas Rural Home Loan Guarantee Act. The amount of each guarantee shall not exceed $100,000.
Single Family Program Manager
Rural counties are defined as those with populations under 10,000, as certified by the Secretary of State on July 1 of the preceding year.
Example - $200,000 Appraisal
HLG provides from 80% of the appraised value up to the loan amount or 125% of the appraised value, whichever is less, subject to an overall limit of $100,000.
- If the loan amount is $225,000, the guaranty is $65,000 (80% of the appraisal up to the loan amount because the loan amount is less than 125% of the appraisal)
- If the loan amount is $250,000, the guaranty is $90,000 (80% of the appraised value up to the loan amount because the loan amount is equal to 125% of the appraisal)
How To Apply
Seeking assistance covering your home’s appraisal gap? Find a lender serving your area here.
Want to partner with us as a participating lender?
Prospective lenders must first complete the lender enrollment form. Once approved, KHRC and the lender will jointly complete an MOU. The lender may then submit each new loan to KHRC along with a completed loan enrollment application.
The following entities are eligible to participate as lenders: banks, trust companies, savings banks, credit unions, savings and loan associations, or any other lending institution located in Kansas. All must have an active NMLS and provide mortgage loans.