First Time Homebuyer Incentive Program

What is the First Time Homebuyer Program?

It is a soft second mortgage loan program to assist qualified low- and moderate income individuals with the purchase of their first home. FTHB loan funds are to assist with down payment and/or closing costs. APPLICATION MUST BE MADE AT LEAST ONE MONTH PRIOR TO CLOSING THE MORTGAGE LOAN.

What are the maximum income limits and FTHB loan amounts?

Households earning at or below 125% of area median income are eligible for $1,500 in assistance.

Household Size

125% of Median


















What are the terms of the soft second mortgage?

The loan is a zero-interest, three-year loan. The borrower will continue to own and occupy the structure for a period of three (3) years after the date on the Soft Mortgage. 

The borrower will continue to maintain the property in a proper manner so as to prevent substantial destruction of the improvements due to the negligence of Applicant; and upon breach of any of the aforesaid covenants.

Homeowner is responsible only to pay back funds if the home is sold or destroyed in a 36-month period. The sliding scale of the Soft Loan Agreement is as follows:

Year                                               % of Amount of Soft Loan

1                                                             25-36/36ths

2                                                             13-24/36ths

3                                                             1-12/36ths 

Are there any other requirements?

  • Borrowers must attend a City approved FTHB Counseling Workshop.
  • All adults in the household must provide proof of income.
  • Applications MUST BE MADE at least one month prior to closing the mortgage loan.
  • Household size will be determined by parents and children in the household. Nieces, nephews and grandparents will not be allowed to show household size unless there is guardianship documentation provided.
  • The home purchased under the FTHB program must be the borrower’s principal place of residence; the property cannot be leased or rented during the term of the City loan.
  • Persons with ownership of any real estate assets are not eligible.
  • Funds are limited. Assistance is provided on a first-come, first-served basis, as long as funds remain available.
  • Borrower must be a first-time homebuyer, which is a household that has not owned a home within the past three years. Borrowers must be able to qualify for a first mortgage from a mortgage lender.
  • Home buyers may purchase an existing single-family detached home located anywhere within the City limits of Coffeyville. 

The First Time Home Buyer Incentive Program shall be implemented consistent with the City’s commitment to State and Federal Equal Opportunity Laws.  No person shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with the Housing and Community Development portion of the 1/2-cent sales tax funds on the basis of their disability, family status, national origin, race, color, religion, sex, marital status, medical condition, ancestry, source of income, age, sexual orientation, gender identity, gender expression, genetic information, or other arbitrary discrimination. The City of Coffeyville will provide reasonable accommodations and/or modifications, or provide language assistance to individuals requesting such assistance to benefit from the services provided by the First Time Home Buyer Incentive Program.

Applications are available in the Housing Department at City Hall - 102 W. 7th