Kansas City, MO Construction Loans

Building a custom home is an exciting process, but it can also be a complex and challenging one. There are many different types of home construction loans available, and it can be difficult to know which one is right for your project. USA Mortgage can help you get the financing you need to make your dream home in Kansas City a reality. We offer competitive interest rates and terms, and our experienced Mortgage Loan Originators will work with you every step of the way to make sure your loan process is as smooth and stress-free as possible. 

What is a construction loan?

A construction loan is a short-term loan used to finance the cost of building or remodeling a home. Unlike a conventional mortgage, which is paid out in a lump sum, a construction loan is typically disbursed in installments, with each payment going towards paying for labor and materials. Once the construction is complete, the loan is either paid off in full or converted into a traditional mortgage.

Exterior of smaller home purchased on a USDA home loan.
Who is eligible for a construction loan in Kansas City, MO?

In order to be eligible for a construction loan, borrowers typically need to have a good credit history, with a minimum score of 680. The higher your credit score, the better your chances of being approved for a construction loan. It is important that your debt-to-income ratio is no more that 45% of your income. Additionally, a down payment of 20%-30% is required. Most lenders will require that the borrower have some sort of collateral, such as equity in another property, in order to secure the loan. 

Why choose a construction loan?
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What our clients have said

The process was fast and easy. Very professional and we were walked through the whole process. Great communication and quick responses when we had questions. I would recommend all my friends to Shane with USA Mortgage.
Jennifer L. 8/16/2021
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Your Kansas City home improvement goals start with USA Mortgage.
Apply now to learn more about our construction loans.

A construction loan from USA Mortgage can be a great way to finance your next home improvement project. Our loans are designed to help you get the money you need when you need it, so you can focus on completing your project on time and on budget.