One-Time Close Construction Loans!
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Missouri & Kansas Construction Loans
Construction Loans in Missouri and Kansas
A one-time close construction-to-permanent loan funds your build and converts into your permanent mortgage at completion using a single closing. One application, one appraisal, one set of closing costs, and no requalifying when the house is finished. DreamLux Home Loans, led by Zach Brown (NMLS #2156538) with access to 280+ wholesale lenders, builds the full cost stack before you sign the construction contract.
What is a one-time close construction loan?
A construction loan finances the building of a home rather than the purchase of an existing one. Instead of funding a lump sum at closing, the lender releases money in stages called draws as the build reaches agreed milestones, and you pay interest only on the balance drawn so far.
In Missouri and Kansas, most buyers building a custom home use a one-time close construction-to-permanent loan. A single closing funds the construction period and then converts automatically into a standard mortgage at completion, with no second application, no second appraisal, no second set of closing costs, and no risk of failing to requalify partway through the build. Zach Brown, NMLS #2156538, is licensed in both Missouri and Kansas.
Two-Time Close Means Betting on Next Year's Approval
A build takes the better part of a year. In that window borrowers change jobs, take on car debt, or see a credit event. On a two-time close the permanent loan is a brand new approval, and if the file no longer qualifies you are holding a construction loan coming due on a house you cannot permanently finance. A one-time close removes that exposure entirely, and for most owner-occupants that certainty outweighs the option value of shopping the permanent loan later.
Construction Scenarios We Place
Construction underwriting evaluates three things at once. You, your builder, and the project. All three have to clear.
Conventional One-Time Close
The owner-occupant product for custom builds within conforming loan limits, converting to a standard conventional mortgage at completion with no requalification.
Best fit: One closing, from 10% down
Jumbo Construction
Custom builds above the county conforming limit, with down payment and reserve requirements set by the individual investor rather than by the agencies.
Best fit: Jumbo construction-to-perm
VA Construction
One-time close construction financing for eligible veterans and service members, subject to VA builder approval and program requirements.
Best fit: VA one-time close
USDA Construction
For eligible borrowers building in qualifying rural and suburban areas of Missouri and Kansas. Eligibility is determined by property address, and the maps get redrawn.
Best fit: USDA, address based
Lot & Land First
Secure the site before you are ready to break ground, then roll the accumulated equity into construction financing later. Worth mapping the full path before you buy the land.
Best fit: Lot loan, equity credit
Investor Build & Rehab
Business-purpose construction and rehab financing for investors, qualified on the project and the property rather than on personal income.
Best fit: Fix and flip, DSCR exit
One-Time Close vs. Two-Time Close, and What You Need to Qualify
The structural choice carries more consequence than the rate does. These two tables cover both.
| One-Time Close (Construction-to-Permanent) | Two-Time Close (Stand-Alone) | |
|---|---|---|
| Number of closings | 1 | 2 |
| Sets of closing costs | One | Two |
| Requalify after the build? | No | Yes, full requalification |
| Rate certainty | Permanent rate structure set up front | Exposed to the market at conversion |
| Risk if income or credit changes mid-build | Low | High, approval can be lost |
| Flexibility to shop the permanent loan later | Limited | Full |
| Usually best for | Owner-occupant custom builds | Builders, investors, and borrowers expecting a materially better market later |
| Factor | Typical Range | Notes |
|---|---|---|
| Credit score | 680 to 720+ | Generally higher than a comparable purchase loan. Government-backed construction options may go lower. |
| Down payment or equity | 10 to 20% | Measured against total project cost or completed appraised value depending on the program. Owned lot equity commonly counts. |
| Debt-to-income | Up to roughly 45% | Underwritten on the permanent payment, not the interest-only construction payment. |
| Reserves after closing | 3 to 6 months | More if you are carrying a current mortgage or rent during the build. |
| Build timeline | 9 to 12 months | Extensions may be available. The clock starts at closing, not at groundbreaking. |
| Contingency reserve | 5 to 10% of build cost | Required by most programs to absorb change orders and overruns. |
| Appraisal basis | Subject-to-completion | Appraised from plans and specifications as though finished. The plans you submit are the plans you must build. |
| Payment during build | Interest only on drawn balance | Rises as draws increase. Some programs allow a financed interest reserve to cover it. |
| Item | What the Lender Is Checking |
|---|---|
| Contractor license | Current and in good standing, where the jurisdiction requires one. |
| Insurance | General liability and workers compensation at required coverage levels, with the lender listed appropriately. |
| Financial statements | That the builder can carry a project of this size without cash-flow failure mid-build. |
| Comparable track record | A history of completed builds at a similar size and price point. |
| Contract | Fixed-price or cost-plus, with a line-item cost breakdown that reconciles to the appraisal and the draw schedule. |
| Plans and specifications | Complete enough to support a subject-to-completion appraisal. |
Illustrative ranges only, varying by investor and program. Eligibility is determined by full underwriting, builder approval and project review. Owner-builder financing is rare: most programs require a licensed third-party general contractor regardless of your own qualifications, so raise it at the scenario stage before you buy the lot.
How Draws Work During the Build
Money is released against verified progress, in order. Each draw is inspected before it funds, which protects you as much as it protects the lender.
- 01Closing and initial disbursement
The loan closes. If the lot is being purchased, that disbursement happens here, and interest begins on the drawn balance only.
- 02Foundation draw
Excavation, footings and foundation complete. The first inspection verifies the work before funds release to the builder.
- 03Framing and dry-in draw
Framing, roof, windows and exterior sheathing complete, so the structure is weather-tight.
- 04Mechanicals draw
Rough plumbing, electrical and HVAC installed and inspected. Typically the largest single draw in the schedule.
- 05Interior finish draw
Drywall, cabinetry, flooring, trim and fixtures. Change orders are reconciled against the contingency reserve at this stage.
- 06Final inspection and certificate of occupancy
The final draw funds after the certificate of occupancy is issued and a final inspection confirms the home was built to plan.
- 07Conversion to permanent financing
On a one-time close, the loan converts automatically to your permanent mortgage and begins amortizing. No second closing, no requalification.
Get the Numbers Before You Sign the Build Contract
Send the lot, the plans and the builder estimate. You get back the full cost stack including site work, contingency and interest reserve, plus the permanent payment you will actually live with. No credit pull to start.
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Your Missouri & Kansas Construction Expert
Budget the Whole Project, Not the Contract Price.
The most common construction surprise in our market is a borrower who budgeted the builder number and did not account for site work on a rural lot, a well or septic system, or a long driveway. Construction financing covers land, hard costs, site work, soft costs, a contingency reserve and sometimes an interest reserve. The pieces people forget are the ones that cause problems later.
Build conditions also differ sharply by market. A subdivision lot in Raymore or Gardner with utilities at the lot line underwrites very differently from Boone County acreage that needs a well, a septic system and a quarter mile of driveway.
Operating through NEXA Lending, LLC, DreamLux gives every client access to 280+ wholesale lenders, which matters when builder approval standards and draw schedules vary this much between investors.
Live Wholesale Pricing
See Your Permanent Payment, No Credit Pull
Your construction loan converts into this payment at completion. Price it before you break ground.
DreamLux Home Loans’
Live Wholesale Pricing
Pricing shopped across 280+ wholesale lenders.
No SSN required. No credit pull.
DreamLux Home Loans is an Equal Housing Lender • NMLS #2156538 • NEXA Lending, LLC
Rates subject to change. Not a commitment to lend.
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Our Most Popular Loan Programs
Every program below is available across Missouri and Kansas, shopped across 280+ wholesale lenders.
New Construction Across Missouri & Kansas
Pick your market for local rates, programs, and guidance from a lender licensed in both states.
Plan the build before you commit to it.
With access to 280+ wholesale lenders, Zach can match the construction program to your builder, your lot and your timeline. No application fee, no obligation.
Missouri & Kansas Construction Loans, Answered
What is a one-time close construction loan?
A one-time close construction loan, also called construction-to-permanent, funds your build and then converts into your permanent mortgage at completion using a single closing. You apply once, pay one set of closing costs, get one appraisal, and do not have to requalify when the house is finished.
How much down payment do I need for a construction loan?
Commonly 10% to 20%, measured against total project cost or the completed appraised value depending on the program. If you already own the lot, its equity typically counts toward that contribution, which is why buyers who purchased land years ago sometimes need far less cash than they expect.
What are my payments during construction?
You pay interest only, and only on the amount drawn so far. The payment starts small after the first draw and grows as construction progresses. Some programs allow an interest reserve to be financed into the loan, which covers those payments so you are not carrying both a construction payment and rent or an existing mortgage.
Can I use the land I already own as my down payment?
In most cases yes. Equity in a lot you own outright generally counts toward your required contribution. How the lot is valued, at original purchase price or current appraised value, depends on the program and how long you have owned it, so confirm the treatment before finalizing your budget.
Does my builder need to be approved by the lender?
Yes. Lenders review the builder license, general liability and workers compensation insurance, financial standing, references, and track record on comparable projects. A builder without a history of similar-sized homes may not be approved. Start builder approval early, because it is a common source of delay.
What happens if the build goes over budget?
Change orders and overruns draw against the contingency reserve built into the loan, typically five to ten percent of the construction budget. Beyond that reserve, the borrower generally covers the difference in cash. That is exactly why the full cost stack including site work, utilities and driveway needs to be accurate before closing.
Can I act as my own general contractor?
Rarely. Most construction programs require a licensed third-party general contractor regardless of your own qualifications. Owner-builder programs exist but are limited, carry stricter terms, and need to be identified at the scenario stage, before you buy the lot or sign anything.
Is my rate locked during construction?
On a one-time close, the permanent loan rate structure is established at the initial closing, which is the central advantage of the product. Extended lock terms and float-down provisions vary by investor. On a two-time close, the permanent rate is whatever the market offers when the build finishes.
Zach Brown, Senior Mortgage Loan Officer | NMLS #2156538 | DreamLux Home Loans, a DBA of NEXA Lending, LLC | NMLS #1660690 | Equal Housing Lender | Licensed in Missouri and Kansas. Rates, terms, guideline figures and program availability are illustrative, vary by investor, are subject to credit approval, and may change without notice. This is not a commitment to lend.
Compare Construction Loan Options by Scenario
Review construction, one-time close, and construction-to-permanent loan options for eligible Missouri and Kansas buyers building a new home.
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Need a second opinion or a quick pre-approval review? Zach Brown NMLS #2156538 helps Missouri and Kansas borrowers compare loan options, costs, qualification paths, and next steps.
Mortgage program availability, rates, fees, terms, and approval depend on borrower qualifications, property details, lender guidelines, market conditions, and applicable law.
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Official DreamLux Loan Program and Licensing Facts
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