Home Loan Guarantee for Rural Kansas (HLG)
The Home Loan Guarantee for Rural Kansas (HLG) by Kansas Housing Resources Corporation backs high loan-to-value mortgages, supporting homeownership and development in rural Kansas communities.
Funder: Kansas Housing Resources Corporation
Due Dates: Rolling
Funding Amounts: Up to $100,000 guaranteed per loan; total program guarantee pool is $2 million.
Summary: Supports financial institutions in rural Kansas by guaranteeing the portion of home loans above 80% of appraised value, increasing access to mortgage credit for homebuyers and homeowners.
Key Information: Only financial institutions can apply; borrowers benefit via participating lenders.
Description
The Home Loan Guarantee for Rural Kansas (HLG) program, administered by the Kansas Housing Resources Corporation (KHRC), is designed to help financial institutions provide mortgage credit to homebuyers and homeowners in eligible rural Kansas counties. By guaranteeing the portion of a home loan that exceeds 80% of the property's appraised value (up to 125% of the appraised value, with a $100,000 cap per guarantee), the program enables banks, credit unions, and other lenders to finance land and building purchases, renovations, and new construction in rural communities. The guarantee helps bridge financing gaps and expand homeownership opportunities in areas that may be underserved by traditional mortgage products.
