Ashlar Blog
Financing Your New Construction Home in Missouri & Kansas: A Beginner’s Guide
Buying a brand-new home is exciting — but the financing part can feel overwhelming. If you’re a first-time buyer in Missouri or Kansas, you may be wondering: “Isn’t financing a new construction home more complicated than buying resale?”
The truth is, with the right builder and trusted lenders, the process can be straightforward. At Ashlar Homes, we’ve guided hundreds of families through financing their dream homes in Missouri and Kansas. We partner with local experts, simplify the steps, and help you feel confident every step of the way.
Here’s everything you need to know as a first-time new construction buyer in Missouri and Kansas.
Step 1: Pre-Approval & Budgeting
Why Pre-Approval is Your First Step
Pre-approval sets the tone for your entire home search. It helps you:
- Understand your true budget
- Demonstrate to builders and sellers that you’re a serious buyer
- Approach the process with confidence
According to the National Association of Realtors, buyers who are pre-approved typically experience smoother, faster transactions.
The Ashlar Advantage
With our preferred lenders, you can pre-qualify in as few as 15 minutes. It’s quick, no-cost, and carries no obligation—just clarity about your next steps.
Example: A young couple reaches out unsure of what they can afford. Fifteen minutes later, they’re pre-qualified and able to start their home search with confidence.
Start your pre-approval with Ashlar Homes
Step 2: Explore Low Down Payment Options
The 20% Myth
Many buyers believe they need a large down payment—20% or more—to purchase a home. In reality, several loan programs allow for much less:
- FHA Loans: Just 3.5% down if your credit is decent (580+)
- VA Loans: 0% down for veterans, active-duty military, and some spouses
- USDA Loans: 0% down if you’re buying in a qualifying rural area
- Conventional Loans: Some programs let you put down as little as 3–5%
At Ashlar Homes, we regularly work with buyers who have “as little as 10%, 5%, 3% or even 0% down.” This makes homeownership possible for more families—even if they haven’t been saving for years.
Did You Know? FHA, VA, and USDA loans are backed by the government, so they’re legit and designed to help more people become homeowners.
Step 3: Construction Loans vs. Traditional Mortgages
What’s the Difference, Anyway?
This step often feels like the most confusing part of financing — but it doesn’t have to be. The type of loan you’ll need really just comes down to the kind of home you’re buying.
| Traditional Mortgage | Construction (OTC) Loan | |
| Best for: | Move-in ready homes | Custom builds, to-be-built homes |
| How it works: | One loan, one closing | Single loan covers build + mortgage |
| Payments: | Start after closing | Interest-only during build, then normal |
| Closing: | One closing | One closing (One-Time Close, OTC) |
Here’s the simple breakdown:
- If the home is finished and ready for you to move in, a traditional mortgage is usually the way to go.
- If you’re building from the ground up, a One-Time Close (OTC) loan helps keep things streamlined by combining construction and permanent financing into one step.
At Ashlar Homes, we walk you through both options so you don’t have to sort out the details on your own. Whether you choose a move-in ready home or decide to build new, we connect you with trusted local lenders who understand new construction — and who make sure the financing feels manageable, not overwhelming.
Step 4: Credit Score & Requirements
What Credit Score Do You Need?
One of the most common questions we hear is: “Is my credit good enough to buy a home?” The short answer: probably more often than you think. Here are some general guidelines lenders look for:
- Conventional & VA Loans: Usually want 620 or higher
- FHA Loans: 580+ for the low down payment option, 500–579 if you can put 10% down
- USDA Loans: 640+ is typical, but some lenders are flexible
Maintaining good credit is important—pay your bills on time, avoid taking on new debt, and check your credit report for mistakes. The higher your score, the better your rates and options.
Remember, these are just benchmarks. Every buyer’s situation is a little different, and credit is only one piece of the puzzle.
How Ashlar Homes Helps
Here’s where we want you to feel at ease: with Ashlar Homes, there’s “absolutely nothing… no-cost solution with no obligation, unless and until your home loan closes.” That means you can explore your financing options without pressure or risk.
We see “credit readiness” as simply making sure your finances are in the best possible shape for the home you want. And if you’re not quite there yet? That’s okay. We’ll help you understand your options and connect you with lenders who can guide you on the next steps.
Step 5: Closing Costs & Transparency
What Are Closing Costs (and Why Do They Matter)?
When you’re planning for a home, it’s easy to think only about the down payment. But there’s another piece of the budget puzzle: closing costs. These are the final fees tied to your loan, and in Missouri and Kansas they typically run about 2–5% of the loan amount.
They cover stuff like:
- Appraisals
- Loan origination
- Title insurance
- Recording and transfer fees
It may sound like a lot, but here’s the key: closing costs are a normal part of new home financing and completely manageable once you understand them.
One thing we’ve learned guiding families through financing new construction in Missouri and Kansas is that surprises are stressful. That’s why we provide a detailed estimate of costs upfront — no hidden add-ons, no last-minute curveballs.
Through our preferred lenders, buyers may also benefit from:
- Rate locks to protect against changing interest rates
- Incentives that lower overall costs
- Assistance with closing expenses on certain homes
These steps, combined with options like low down payment homes in Missouri and Kansas, make the path to homeownership more accessible than many first-time buyers expect.
Want to dig deeper?
Check out Bankrate’s closing cost guide or the CFPB’s explainer.
How Ashlar Homes Supports Buyers
We’re With You—Every Step of the Way
Buying a home is a big deal. You deserve a team that’s on your side from start to finish. Here’s how we make it happen:
- Preferred lender partnerships: We work with CommunityAmerica Credit Union and other local experts to get you approved fast and keep things personal.
- Step-by-step help: From pre-approval to closing, we’re with you, answering every question (even the ones you think are silly).
- Best rates, no surprises: We negotiate for you, making sure you get a great deal with zero hidden fees.
- Clear, honest communication: You’ll always know what’s happening and what’s next.
Our Promise: “We walk you through every stage, answer your questions, and always act in your best interest.”
And we’re proud to say our homeowners feel the difference:
“The building of my house went very smoothly from beginning to end. The few concerns that came up during the process were addressed and solved immediately. Building a new home can be very stressful, but you made it easy. It was a very pleasant experience.”
— Carol H.
When you’re ready to take the next step, we’ll be here to help make the process clear, manageable, and — most importantly — stress-free.
Ready to take the first step?
Talk to our preferred lenders today or start your pre-approval process in just 15 minutes. Your new home in Missouri or Kansas might be closer than you think.
P.S. Still have questions? That’s normal! Reach out any time—we’re happy to walk you through it, no matter where you’re starting from.
Helpful Resources & References: