The State Line Runs Through Your Investment Market
Kansas has a problem no other state on this list has quite so acutely: its largest metropolitan market is split between two states.
The Kansas City metro spans Kansas and Missouri, and investors here routinely hold property on both sides. Johnson County, Wyandotte County, and the Kansas suburbs behave as one market with Jackson County and Missouri’s side but they are two separate licensing jurisdictions, two sets of state lending rules, two foreclosure regimes, and two property tax systems.
The practical consequence: if your portfolio crosses the line, or might, confirm your lender is licensed in both states before you start. A lender who can only write in Kansas will handle half your pipeline and you will discover it on the deal you most need to close.
The same applies in reverse to Missouri-based investors buying into Johnson County, which is where a lot of Kansas investment demand comes from.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans in Kansas. Working across multiple wholesale investors matters here for the licensing reason above — the shelves that write both sides of the Kansas City line are not the same as the ones that write only one, and knowing which is which saves a deal.
We quote the DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
NQM Funding A wholesale Non-QM lender publishing Kansas-specific 1099 guidance, with 1099, bank statement, P&L, DSCR, and foreign national programs and scenario support for non-traditional income. Broker channel.
Newpoint Mortgage A Non-QM lender covering Kansas alongside the surrounding Midwest and South, with DSCR, mixed-use, and closed-end DSCR second mortgage programs.
Capital Home Mortgage Kansas Kansas operations across 1099, bank statement, asset, and DSCR programs.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Griffin Funding Publishes qualifying on 90 to 100 percent of gross 1099 income, 620 minimum credit, and loan amounts to $4 million.
NASB (North American Savings Bank) A Missouri-based lender with one of the longest-running alternative documentation programs in the country and a 1099-NEC based option. Regionally relevant given the Kansas City market.
Kansas’s local Non-QM bench is thinner than in larger states. Verify current licensure and program availability before relying on any listing see the disclaimer at the end of this page.
The Write-Off Problem, Stated Plainly
Here is the situation a Kansas 1099 program exists to solve.
A tradesman earns $100,000 in documented 1099 income and writes off $40,000 in legitimate business expenses tools, vehicle, materials, insurance. His tax return shows $60,000. A conventional lender reads $60,000, applies a 45 percent DTI cap, and tells him what he can afford based on a number that is 40 percent below what he actually earns.
A 1099 program qualifying on gross receipts reads the $100,000.
That gap is the entire product, and in Kansas where trades, ag services, and owner-operator trucking make up a large share of independent income it applies to a very large number of borrowers.
How Qualifying Works
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Ask directly: do you qualify on gross 1099 income, and if you apply an expense factor, what is it and is it negotiable?
One year or two
One-year suits growing income or a recent shift to independent work with prior experience in the same field.
Two-year suits agricultural service income tied to crop cycles, construction working a seasonal window, and anyone whose work depends on a small number of large contracts.
The two-year self-employment history requirement is separate from the two-year income lookback. Ask about both.
Kansas’s 1099 Population
Aviation and aerospace contractors around Wichita, one of the country’s significant aircraft manufacturing centers, with a substantial contract engineering and specialist workforce.
Owner-operator trucking along the I-70 and I-35 corridors a group for whom gross-receipts qualifying is decisively better than the alternatives.
Agricultural services and custom operators across central and western Kansas, whose income tracks crop cycles rather than calendar years.
Construction and specialty trades statewide, with the write-off profile described above.
Healthcare and professional contracting in the Kansas City suburbs and around Wichita.
Kansas Investment Markets
Johnson County and the Kansas City suburbs carry the bulk of higher-value investor inventory, with the strongest appraisal support and the state-line consideration discussed above.
Wichita offers lower entry prices with solid rent-to-price ratios, supported by a durable manufacturing employment base.
Topeka supports multi-unit and mixed-use inventory at values that make small multifamily reachable for a first-time investor a genuinely different opportunity from single-family, and one where combined unit rents help DSCR clear comfortably.
Rural western Kansas is where loan minimums bind hardest. A great deal of inventory prices below common Non-QM floors of roughly $75,000 to $150,000.
Other Kansas Specifics
Non-judicial foreclosure is not the norm. Kansas foreclosures generally proceed through the courts, which lengthens timelines relative to power-of-sale states and makes investors modestly more conservative on leverage.
Hail and wind. Kansas sits in an active severe-weather corridor, and roof age plus hail history materially affect insurability and premium. Get an actual binder rather than a national estimate, particularly on older roofs.
Appraisal support thins quickly outside the metros. Build extra time into contracts in rural counties, and expect occasional low valuations where comparable sales are sparse.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: 620 floor at most investors; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA, often with additional reserves per financed property already owned
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
1099 or DSCR?
Kansas rent-to-price ratios support DSCR well across most of the state, particularly in Wichita and Topeka, and small multifamily clears especially comfortably.
Use DSCR on a conventional rental with documented lease history that clears the lender’s loan minimum.
Use a 1099 loan where the property falls below that minimum, where it needs work before it rents, where there is no rental history, or where you are also buying a primary residence DSCR is investment-only.
Questions to Ask
- Are you licensed in both Kansas and Missouri? (Ask this in the KC metro.)
- Do you qualify on gross 1099 income, or apply an expense factor?
- What is your minimum loan amount?
- Will you run both the 1-year and 2-year scenarios?
- How does hail history on the roof affect the insurance review?
- Can you quote DSCR on the same property?
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in Kansas, currently offers the program described, or will approve your file.
Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure independently through NMLS Consumer Access at nmlsconsumeraccess.org.
Select Home Loans, NMLS #2384002. Equal Housing Opportunity.
