Build your custom home with a tailored loan
Our construction to permanent (CP) loan (often referred to as a home construction loan) combines construction financing and the permanent mortgage into one loan, so you save by paying only one set of closing costs. Plus, you’ll have the peace of mind that comes from locking in your interest rate before construction begins.
Experience Matters
Want to discuss options for financing your home build? With over 50 years of experience and thousands of custom builds financed, we’re here to help make financing your build simple!
Talk to our teamBenefits of a Construction to Permanent loan
One-time close
Because a CP loan covers both the construction and mortgage phase, you only need to qualify once, and it requires only one set of closing costs with less fees and paperwork.
Flexible financing
With a construction to permanent loan, you can secure a fixed interest rate as soon as you close the loan so it will not change even when the loan converts to a mortgage.
Draw period
Keep your monthly payments lower for the first 12 months during construction with interest-only payments that are charged only on the principal balance drawn each month.
How does a Construction to Permanent loan work?
Our Construction to Permanent (CP) loan is a financing solution to cover the costs of buying land (unless you already own the lot), building a home on it, and beginning your standard monthly mortgage payments all in one loan. Our construction and home loan is combined so you save by only paying one set of closing costs and your interest rate is locked in before construction begins. Consider this loan a one-time close!
What does the Construction to Permanent loan process look like?
In the beginning, two closings happen simultaneously: the closing on your land (if you don’t already own it) and the closing for the construction loan. Once the home is complete, we conclude the draw process with your builder so you can move in. The loan will convert to a traditional mortgage after the 12-month, interest-only period is complete, possibly sooner.
What happens after my loan is approved?
After your approvals, all you need to do is finalize your blueprints. The process is very hands-off for you. Your builder uses your loan to make draws, or transactions, to purchase materials in order to build your home. The bank also handles draws by working directly with your builders. During the 12-month construction period, the loan requires interest–only payments, keeping your payments low. And, you will not pay interest on any funds not drawn during the build.
Download our FREE brochure
Ready to learn more? Download our Construction to Permanent Loan Guide for a complete look at the Loan process, or contact our construction lending team.
Download free guideYour Construction to Permanent loan questions answered
Hear from our experts as they share helpful information and tips for navigating First Federal Bank of Kansas City's Construction to Permanent loan process.
*Certain restrictions may apply. All loans subject to approval.
Where we finance
We finance home builds within a 50-60 mile radius of downtown Kansas City, including, but not limited to, the following locations:
- Cass, Clay, Jackson, Platte, and Lafayette counties in Missouri.
- Johnson, Wyandotte, Leavenworth, and Miami counties in Kansas.
Not sure if you're in our financing area? Contact us — we may be able to help you out.
Given the increased demand for home financing, Mr. Miller's service and efforts were amazing! Keep up the good work!
James C.
I really appreciate Chris's communication throughout the process and his willingness to explain the process and pro's/con's. He didn't assume I already knew everything and he was willing to break the process down in detail. He was also very responsive.
Monte J.
Chris was very good to work with throughout the whole process. His communication and timeliness made it easy for us to get approved and close on time. The construction to perm loan is exactly what we needed in order to build our dream home.
Landon G.
Chris was a great communicator! He always got back to us right away, even if we had a question on the weekend. He took the time to sit down with us and explained how the whole process works and put our mind at ease about building our new home.
Danielle
Chris was easily accessible and always friendly, but very professional. I appreciate his support staff as well. The entire team was easy to work with on the transaction.
Nicole
Chris was quick to answer any questions I had and made sure to explain the steps along the way. He's also transparent with the process and an easy guy to get along with in general.
Hunter
Chris made my wife and I very comfortable with everything we went through in the whole loan process. At closing, he went through everything in detail which also made us feel at ease. Very friendly and knowledgeable guy.
Douglas
Chris knew his stuff. It was easy and always had answers for me. And, always either picked up when I called or called back quickly.
Michael
Great product, construction loan to conventional. Information and process were clearly explained, very easy to follow. Thank you very much.
Thomas
Have you asked yourself these home building questions?
- Where do you want to build your home?
- Is your home within 50 miles of the Kansas City area?
- Have you picked a home style or floor plan?
- Which builder are you partnering with to build your home?
- Are you able to pay 20% down on your loan? If not, do you have equity in your current home?
We’re here to help
Our team is ready to answer questions and help you navigate the financing process so you can achieve your dream home build.
