FHA Loans in Kansas: The Mortgage Tax Is Gone and the Premium Comes From HUD

Kansas City straddles a state line, and a client house-hunting on both sides finds the same FHA loan limit on each. The closing is where the two sides part ways.

All 105 Kansas counties share one 2026 FHA loan limit, $541,287 for a one-unit home, so the FHA limit is the same in Johnson County, Sedgwick County and Cheyenne County.

I'm Jeff Moran, NMLS #483943, licensed to originate mortgages in Kansas through C2 Financial Corporation.

What does the state charge on a Kansas FHA closing?

A 2014 Kansas law phased the state's mortgage registration tax down to zero, and for mortgages recorded on or after January 1, 2019 the tax is gone. Kansas still charges the register of deeds' ordinary recording fees, which are set by the page. The repealed tax was a levy that grew with the loan amount. The Kansas page tells the repeal story, and the state-by-state list of mortgage recording taxes shows where Kansas stands.

The charge that grows with an FHA loan is federal. HUD's FHA handbook sets the upfront mortgage insurance premium at 1.75 percent of the base loan amount. You can pay it in cash or finance all of it into the loan, but not part of each. The arithmetic on an invented loan looks like this:

Base loan amount (invented)            $250,000
Upfront premium                 x        0.0175
                                      ----------
Upfront premium                          $4,375
Total loan if financed                 $254,375

The financed premium does not count when HUD tests your loan against the area limit or the loan-to-value ceiling. The annual premium is separate. For a loan over 15 years with a base amount of $726,200 or less and a loan-to-value above 95 percent, the handbook's chart lists 0.55 percent a year for the term of the mortgage.

If you already have an FHA loan, the upfront premium is nonrefundable except when you refinance into a new FHA-insured loan. Kansas adds no registry tax to that refinance, and the Kansas refinance page prices the remaining costs.

What is the FHA loan limit in Kansas?

HUD's Mortgagee Letter 2025-23 sets the 2026 limits, and HUD's county file puts all 105 Kansas counties at the national floor. That is the lowest limit the program sets anywhere.

Units	FHA limit, every Kansas county
One	$541,287
Two	$693,050
Three	$837,700
Four	$1,041,125

The limit is the same in Wichita, Topeka and the Kansas side of Kansas City, so a client comparing towns compares prices and closing costs and never the limit.

The Kansas City state line

The FHA limit does not change when you cross the line. All 115 Missouri counties and county equivalents are at the same national floor. The closing does change. Missouri's constitution bars new taxes on real estate transfers, Kansas repealed its mortgage tax, and Kansas and Missouri each regulate title charges their own way. Before you budget anything, find out which state the property is in.

Closing and escrow charges are on file

Kansas is not an attorney-closing state. State law lists handling escrow, settlements and closings among a title agent's functions. Title agents handling property in counties of 10,000 people or more must file their rates and charges, and the filing covers closing, escrow and document preparation fees as well as the title premium. The Kansas Insurance Department publishes the filings by agency.

That helps on an FHA purchase, where cash to close matters. FHA asks for at least 3.5 percent of the value as your minimum down payment, and your cash at closing adds the closing costs you pay on top of it. Comparing two filed settlement charges can lower that second figure.

No Kansas statewide authority assigns the owner's title policy to the buyer or the seller, so the purchase contract decides who pays it.

The rest of FHA, in one paragraph

The FHA explainer covers the mechanics. A purchase can be financed up to 96.5 percent of the value. FHA works from the middle of your three credit scores, and at 580 or higher you are eligible for maximum financing. From 500 to 579 the loan is limited to 90 percent. Conventional with 3 percent down is the usual comparison.

Where to start

When you're ready, you can see FHA priced for your Kansas scenario, with the premium and the filed closing charges included. What a pre-approval involves covers the letter, and how debt-to-income is figured covers the ratio. Veterans have a separate path on the Kansas VA page.

Nothing here is a loan approval, a denial, a commitment to lend, or legal advice. The loan limits are HUD's published 2026 figures and the example above uses invented amounts.

Common questions

Does Kansas charge a mortgage registration tax on an FHA loan?

No. Kansas phased the tax out and repealed it for mortgages recorded on or after January 1, 2019. A Kansas FHA purchase or refinance pays the ordinary recording fees, which are charged by the page and do not grow with the loan.

Is the FHA loan limit higher in Johnson County than in Sedgwick County?

No. HUD sets the same 2026 FHA limit in all 105 Kansas counties, and it is the national floor. The limit changes only with the number of units in the home.

Does the Missouri side of Kansas City have a different FHA limit?

No. Missouri's counties are at the same national floor. The closing is different on each side of the line, because Kansas and Missouri tax and regulate title charges differently, so the state the property is in matters for your costs.

Can I compare closing fees on a Kansas FHA purchase?

Yes. Kansas requires title agents in counties of 10,000 people or more to file their charges, including closing and escrow fees, and the state publishes them by agency. That lets you compare providers before you choose one.

Who pays for the owner's title insurance on an FHA purchase in Kansas?

The purchase contract decides. No Kansas statute or statewide authority assigns it to the buyer or the seller, so it is a term to settle before you sign.