A Kansas DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage. Kansas repealed its mortgage registration tax beginning in 2019, according to the Kansas Legislative Research Department.
Kansas changed two rules that matter to investors: the mortgage registration tax is gone, and a 2026 law narrowed the state's prepayment ban to personal-purpose home loans. Foreclosure still runs through the courts with a redemption period.
If you're financing a Kansas single-family you might live in later, read how owner occupancy changes a DSCR loan.
Does Kansas tax a mortgage when it's recorded?
No. Kansas phased down its 0.26% mortgage registration tax and repealed it altogether beginning in calendar year 2019, according to the Kansas Legislative Research Department.
| Year | Mortgage registration tax rate |
|---|---|
| 2015 | 0.20% |
| 2016 | 0.15% |
| 2017 | 0.10% |
| 2018 | 0.05% |
| 2019 and later | Repealed |
Exception: County register of deeds recording fees still apply and are not covered here.
According to the Kansas Legislative Research Department, Mortgage Registration Tax and Statutory Fees, as of October 2026.
Does Kansas limit prepayment penalties on rental property loans?
As amended by 2026 House Bill 2497, K.S.A. 16-207(b) bars prepayment penalties more than six months after the note only on home loans made primarily for personal, family or household purposes, so it does not reach a business-purpose rental loan.
- 2026 Session Laws chapter 97 (HB 2497), approved April 9, 2026, added the personal, family or household purpose limit.
- Before the amendment, the six-month rule in 16-207(b) was not limited by purpose.
Exception: The online statute page may still show the pre-2026 text. Rely on the session law, and get prepayment terms in writing from the lender.
According to 2026 Session Laws chapter 97 (HB 2497), Kansas Secretary of State, as of October 2026.
How are rental property loans foreclosed in Kansas?
Kansas mortgage foreclosure ends in a court-ordered sale followed by a redemption period that is generally 12 months under K.S.A. 60-2414, with the court ordering three months when less than one-third of the original debt was paid before default.
- K.S.A. 60-2414 lets the owner redeem real property sold under an order of sale.
- The general period is 12 months from the day of sale, shortened to three months by court order in the case described in subsection (m).
- A mortgagor may agree in the mortgage to a shorter period, except for agricultural land and 1-2 family dwellings that individuals own as their residence, so a rental mortgage can set a shorter period.
Exception: Redemption rules turn on the property and the amount paid down. Read 60-2414 or ask a Kansas attorney for a specific case.
According to K.S.A. 60-2414, Kansas Legislature, as of October 2026.
What Kansas landlord rules affect a rental property's numbers?
Kansas caps a security deposit at one month's rent for an unfurnished unit and 1.5 months for a furnished unit, plus up to half a month for pets, and requires the balance back within 14 days after deductions are determined and no later than 30 days, under K.S.A. 58-2550.
| Unit | Maximum deposit (K.S.A. 58-2550) |
|---|---|
| Unfurnished | 1 month's rent |
| Furnished | 1.5 months' rent |
| Pet allowed | Up to 0.5 month's rent added |
Exception: The 30-day outer limit runs from termination, delivery of possession and the tenant's demand.
According to K.S.A. 58-2550, Kansas Revisor of Statutes, as of October 2026.
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Disclaimer
This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.