Can I Buy a Home in the Kansas City Area With Less Than 20% Down?
If you’ve been watching the housing scene in the Kansas City metro—on both the Kansas and Missouri sides—you’ve probably heard whispers that the old “20% down payment” rule isn’t the hard requirement it used to be.
And that’s true.
Today’s mortgage landscape offers far more flexibility, especially for qualified buyers. Whether you’re a first-time homebuyer, self-employed, or looking to move up to your next home, understanding your low-down-payment options can help you step into the right home without stretching your finances.
Why the 20% Down Myth Still Hangs Around
For years, buyers were told that 20% down was the gold standard. Historically, it did come with benefits:
Putting 20% down eliminated or reduced private mortgage insurance (PMI).
Lenders and agents repeated the rule so often that it ingrained itself in buyers’ minds.
Many people still assume higher down payment = the only responsible path.
But that’s simply not today’s reality. Modern loan programs—especially for qualified borrowers—allow you to get into a home with significantly less cash up front.
How You Can Buy With Less Than 20% Down in KC
If you’re hoping to buy sooner rather than later, the good news is: you have options.
1. Conventional Loans
Conventional financing through Fannie Mae or Freddie Mac can require as little as 3–5% down for qualified buyers. This is often a strong option for buyers with solid credit.
2. Government-Backed Loans
Programs like:
FHA Loans – Often allow down payments as low as 3.5%.
VA Loans – Zero-down options for eligible veterans and active-duty service members.
USDA Loans – Zero-down options in certain rural-eligible areas around the KC metro.
These programs exist to make homeownership more accessible—and they do.
3. KC-Metro Down Payment Assistance Programs
Both Kansas and Missouri sides of the metro offer grants, forgivable loans, and second-mortgage programs to help reduce your upfront out-of-pocket costs, especially for first-time buyers.
4. Options for Self-Employed / Non-Traditional Earners
If you own your own business or have variable or non-traditional income, specialty options like bank-statement loans may still make homeownership possible. A knowledgeable lender can guide you through which programs fit your situation.
What You’ll Need to Qualify
Buying with less down is possible, but there are a few key factors lenders look at:
Credit score
Debt-to-income ratio
Income & employment documentation
Financial reserves
Lower down payments often come with PMI or slightly higher rates/fees. That doesn’t make them bad—just important to understand.
Working with a lender who is local to Kansas City and familiar with Missouri and Kansas regulations is crucial. Programs differ between counties and even cities, so having someone who knows the landscape matters.
Kansas City-Specific Nuances to Know
Living in a metro that spans two states means:
Property taxes vary significantly between counties.
Down payment assistance programs differ across the state line.
Insurance requirements may shift depending on location.
And because KC’s market can be competitive, having a strong pre-approval—even with a lower down payment—can still position you well. The key is having complete documentation and a responsive lender backing your offer.
Another note: more buyers are entering the market thanks to these low-down-payment options. If you’ve been waiting because you assumed you needed 20%, now may be the right time to explore your options.
Ready to Explore Your Options? Let’s Talk.
If you’re thinking about buying a home in the Kansas City metro and want to understand how less-than-20% down could work for you, I’m here to help.
I’m Jim Yarrington, Senior Mortgage Loan Officer with First State Bank Mortgage in Overland Park, KS (NMLS #454680). I specialize in conventional, FHA, VA, USDA, jumbo, self-employed, and non-QM mortgage solutions.
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📞 Call or text: 913-915-1855
All loans subject to approval. Equal Housing Lender.