Zero-down USDA Guaranteed Loans are the most popular rural development mortgage program in Kansas. These loans are available for anyone with low to moderate income to purchase a home in approved rural areas with no down payment.  The USDA Guaranteed Loan Program is also the favorite no-down payment mortgage in Kansas for non-veterans today, and can be used for a broader range of applicant incomes than USDA Direct Loans.

What are Kansas USDA Loans?

The USDA loan program was created by the United States Department of Agriculture Rural Development, also known as “USDA RD”. USDA Guaranteed Loans (also known as USDA Section 502 Guaranteed Loans) are a mortgage program for low and moderate income mortgage applicants. Kansas USDA loans provide low-cost, government insured mortgage options that suit a variety of home buying needs. The most common mortgages offered through USDA are known as “Guaranteed” loans. USDA Guaranteed Loans are 100% financing mortgages, which means you can use them to buy a home with no down payment.

Kansas USDA Loan Requirements

USDA loan requirements mainly focus on the home loan applicant and the property. First off, the home must be located in an approved rural areas to be considered eligible for USDA financing. Second off, the home buyer must meet all income requirements set forth by USDA. These income limits are established through a combination of debt-to-income ratios and income ceilings that equal 115% of the area median income (AMI) for the particular area. Statewide, Kansas carries a median household income of $59,597, but that can vary from county to county. Ultimately, the applicant must also meet all lender requirements for mortgage approval which include:

  • Credit Requirements
  • Income Requirements
  • Documentation Requirements

Kansas USDA Loan Limits

USDA doesn’t set specific maximum loan amounts for guaranteed mortgages. Instead, local limits are determined by a combination of the area USDA maximum income limit and the borrower’s debt-to-income ratios. This approach means that guaranteed Kansas USDA loan limits are fluid and based upon numerous factors. The limits listed below are based on approximate calculations. Actual guaranteed loan limits may vary.

Area
1-4 Person Households
5-8 Person Households
Allen County, KS$306,000$391,000
Anderson County, KS$306,000$391,000
Atchison County, KS$306,000$391,000
Barber County, KS$306,000$391,000
Barton County, KS$306,000$391,000
Bourbon County, KS$306,000$391,000
Brown County, KS$306,000$391,000
Chase County, KS$306,000$391,000
Chautauqua County, KS$306,000$391,000
Cherokee County, KS$306,000$391,000
Cheyenne County, KS$306,000$391,000
Clark County, KS$306,000$391,000
Clay County, KS$306,000$391,000
Cloud County, KS$306,000$391,000
Coffey County, KS$306,000$391,000
Comanche County, KS$306,000$391,000
Cowley County, KS$306,000$391,000
Crawford County, KS$306,000$391,000
Decatur County, KS$306,000$391,000
Dickinson County, KS$306,000$391,000
Edwards County, KS$306,000$391,000
Elk County, KS$306,000$391,000
Ellis County, KS$306,000$391,000
Ellsworth County, KS$306,000$391,000
Finney County, KS$306,000$391,000
Ford County, KS$306,000$391,000
Franklin County, KS$306,000$391,000
Geary County, KS$306,000$391,000
Gove County, KS$306,000$391,000
Graham County, KS$306,000$391,000
Grant County, KS$306,000$391,000
Gray County, KS$306,000$391,000
Greeley County, KS$306,000$391,000
Greenwood County, KS$306,000$391,000
Hamilton County, KS$306,000$391,000
Harper County, KS$306,000$391,000
Haskell County, KS$306,000$391,000
Hodgeman County, KS$306,000$408,000
Jewell County, KS$306,000$391,000
Kansas City, MO-KS HUD Metro FMR Area$340,000$431,000
Kearny County, KS$306,000$391,000
Kingman County, KS HUD Metro FMR Area$306,000$391,000
Kiowa County, KS$306,000$391,000
Labette County, KS$306,000$391,000
Lane County, KS$306,000$391,000
Lawrence, KS MSA$323,000$417,000
Lincoln County, KS$306,000$391,000
Logan County, KS$306,000$391,000
Lyon County, KS$306,000$391,000
Marion County, KS$306,000$391,000
Marshall County, KS$306,000$391,000
McPherson County, KS$306,000$391,000
Meade County, KS$306,000$391,000
Mitchell County, KS$306,000$391,000
Montgomery County, KS$306,000$391,000
Morris County, KS$306,000$391,000
Morton County, KS$306,000$391,000
Nemaha County, KS$306,000$391,000
Neosho County, KS$306,000$391,000
Ness County, KS$306,000$391,000
Norton County, KS$306,000$391,000
Osborne County, KS$306,000$391,000
Ottawa County, KS$306,000$391,000
Pawnee County, KS$306,000$391,000
Phillips County, KS$306,000$391,000
Pottawatomie County, KS SEA$323,000$417,000
Pratt County, KS$306,000$391,000
Rawlins County, KS$306,000$391,000
Reno County, KS$306,000$391,000
Republic County, KS$306,000$391,000
Rice County, KS$306,000$391,000
Riley County, KS SEA$323,000$417,000
Rooks County, KS$306,000$391,000
Rush County, KS$306,000$391,000
Russell County, KS$306,000$391,000
Saline County, KS$306,000$391,000
Scott County, KS$306,000$391,000
Seward County, KS$306,000$391,000
Sheridan County, KS$306,000$391,000
Sherman County, KS$306,000$391,000
Smith County, KS$306,000$391,000
St. Joseph, MO-KS MSA$306,000$391,000
Stafford County, KS$306,000$391,000
Stanton County, KS$306,000$391,000
Stevens County, KS$306,000$391,000
Sumner County, KS HUD Metro FMR Area$306,000$391,000
Thomas County, KS$306,000$391,000
Topeka, KS MSA$306,000$391,000
Trego County, KS$306,000$391,000
Wallace County, KS$323,000$417,000
Washington County, KS$306,000$391,000
Wichita County, KS$306,000$391,000
Wichita, KS HUD Metro FMR Area$306,000$391,000
Wilson County, KS$306,000$391,000
Woodson County, KS$306,000$391,000

Additional USDA Limits

What is the maximum amount that I can borrow with a USDA Loan?

The maximum amount for a USDA home loan in Kansas is determined by:

  • Maximum Loan Amount: There’s no set maximum loan amount for USDA rural home loans in KS. Instead, your debt-to-income ratios dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for all areas can be found at here.
  • Maximum Financing: The maximum USDA Rural Development Loan amount in KS is 100% of the home’s appraised value plus the 1% USDA RD Loan guarantee fee.

What types of loans does USDA offer in Kansas?

Two USDA home loan options are presently available in Kansas for single family households. These programs are backed by the U.S. Department of Agriculture by way of its Rural Development Housing Loans:

  • Kansas USDA Guaranteed Home Loans – Guaranteed Loans the most common Rural Housing Loans in Kansas, because they accommodate higher income limits and 100% financing for home purchases. USDA Guaranteed applicants may have an income of up to 115% of the median household income for the area, which average $59,597 across the state. Specific area income limits for the program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
  • Kansas USDA Direct Home Loans – USDA Direct Housing Loans in Kansas are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I’m eligible for a USDA Loan in Kansas?

To be eligible for a USDA loan in Kansas, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is generally required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

How much money will I need for the down payment and closing costs?

Rural Development Mortgages in Kansas require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Mortgages?

While USDA Guidelines do require that the property be Owner Occupied (OO), they also allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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