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Program 03

Ground-Up Construction in Kansas City

Ground-up construction loans for builders across Kansas City, Missouri.

USA Mortgage funds ground-up construction loans for builders and developers on the Jackson County side of Kansas City, up to 70% LTV and 85% of cost, with draws that track your build schedule. We finance the lot and the vertical build together, whether the parcel comes from a private seller or the Land Bank of Kansas City. A 2026 build does not land on the Jackson County tax roll at its built value until the 2027 valuation date, so the carrying-cost jump comes later than most builders expect. This is business-purpose lending for LLCs and companies building non-owner-occupied property, not a loan for a home you plan to live in.

Ground-Up Construction in Kansas City, MO from USA Mortgage
70%
max LTV
85%
of cost
Most states
funding
$5M
max loan

Typical figures, subject to underwriting and market conditions. Not a commitment to lend.

How it works

We finance both the land and the vertical construction, with a draw schedule built around your timeline. Experienced builders can access higher leverage on cost.

Who it's for
Spec home builders
Developers and operators
Lot purchase or teardown
Build-to-rent strategies
Typical terms
Loan amountUp to $5M
LeverageUp to 70% LTV / 85% LTC
Term12 to 24 months
DrawsPer build schedule
RateFrom 10.00%*
UseSpec or build-to-rent
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*Typical terms, subject to underwriting and market conditions.

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Local FAQ

Ground-Up Construction in Kansas City, answered.

Where do Jackson County builders find buildable lots?
The Land Bank of Kansas City is the deepest lot source inside the city limits. A third-party listing aggregator counts roughly 2,576 Land Bank homes and lots, with asking prices starting near nothing on many parcels, and secondary sources put the buyer screen at a signed application, a $25 background check fee, an $85 non-refundable administrative fee, and proof of funds for both the purchase and the build. The Land Bank's own pages were not readable when this page was written, so confirm the current inventory and fees with the Land Bank before you rely on them. The Land Bank will not sell to anyone who owns other Kansas City property that is tax-delinquent or in code violation, so a portfolio in good standing is a prerequisite for the next lot, not just a nicety.
Is raw land taxed at the residential rate before I build on it?
No. Missouri classifies vacant land by its "immediate most suitable economic use," weighed across eight statutory factors, not by what gets built on it later. A Land Bank lot or a teardown parcel is not automatically assessed at the 19 percent residential rate just because a house will eventually sit on it. Confirm the current land classification before you underwrite the pre-construction tax line.
When does a new build actually show up on my Jackson County tax bill?
Later than the year you build it. New construction is excluded from Missouri's levy rollback and is valued as though completed on January 1 of the preceding odd-numbered year, so a build finished in 2026 is picked up at the 2027-01-01 valuation date. Budget for that step-up to land in the 2027 tax year, not the year you finish the build.
Does Jackson County's reassessment dispute affect a new-construction tax basis?
It doesn't shield one. The State Tax Commission's 2026-06-03 order caps 2023 residential increases at 15 percent over the prior year for existing property, but that inspection-based protection does not apply to value added by new construction. A Jackson County ground-up build's post-completion assessment is the one number in the county the correction order does not cushion, so verify the parcel's current status at the county rather than assuming the 15 percent cap applies to your finished build.
What will Kansas City charge in building permit or impact fees?
We can't quote a figure, and neither can most secondary sources. Kansas City's own permitting pages and code library both block automated lookups, and no Kansas City residential permit fee schedule, plan-review timeline, or impact fee has been verified from a primary source. Get a written fee quote from the city's permitting office for your specific parcel and scope before you finalize a construction budget.
FAQ

Ground-Up Construction questions, answered.

How much of my construction project will you finance?
We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.
Will you finance the land or lot purchase?
Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.
How does the draw schedule work?
Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.
What are the rates and terms on a ground-up loan?
Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.
Do you lend to first-time builders?
We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.
What do you need to quote a construction loan?
The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.
See all frequently asked questions
Resources

Guides for Ground-Up Construction

Fix and Flip · 6 min read
Fix and Flip Loan Requirements: What You Need to Get Funded
Read the guide
Fix and Flip · 5 min read
What Is ARV (After-Repair Value) and How Do You Calculate It?
Read the guide
Construction · 5 min read
How Ground-Up Construction Loans Work
Read the guide
Getting Funded · 4 min read
LTV vs LTC: What's the Difference?
Read the guide
Browse all guides
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About the local figures on this page

Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.

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