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Kansas Housing Loan Deposit Program             PDF for the Kansas Housing Loan Deposit Program

The Kansas Housing Loan Deposit Program provides qualified builders and developers in Kansas access to $60 million in low interest loans to finance housing development.

Recent changes to make the loan program more responsive to the needs of participants:

  • The loan program is now open to the construction of multi-family dwellings;
  • Maximum home values are now tied to the federal MRB rate -- currently $287,434 for a single-family dwelling and $552,757 for a four dwelling unit (including duplex and triplex construction);
  • Developers can now have up to $2 million in loans outstanding at any one time;
  • Rehabilitation projects now qualify.
  • Adult Care homes and assisted living residential care homes are now able to borrow up to $2 million at one time.

Single and Multi family dwelling loans may be amortized for up to 5 years and adult care and assisted living homes may be amortized for up to 20 years..  Interested borrowers can qualify through participating lenders or by contacting the State Treasurer’s Office at 785-296-3171.

Additional Info: Rules and Regulations

Lender Packet

What role does Treasurer Ron Estes play?

Kansas State Treasurer Ron Estes administers the Kansas Housing Loan Deposit Program. As Administrator, the State Treasurer:

  • Develops linked deposit agreements and other documents
  • Adopt rules and regulations
  • Disseminates information
  • Provides loan packages to lending institutions eligible for participation
  • Approves content of completed loan packages
  • Certifies to the Director of Investments the amount required for a loan package
  • Presents annual activity report to the Governor and Legislature

What role does the PMIB play?

The Pooled Money Investment Board handles investment of the State's idle funds:

  • Upon certification by Treasurer Ron Estes, PMIB places a housing linked deposit in the amount certified with an eligible institution at an interest rate of 2.0% below the market rates. The rates will be recalculated on the first business day of January and July each year using the market rate then in effect. Click here to find out the current rates.
  • Wires funds to lending institutions
  • Collects interest and principal as appropriate

What roles do the eligible institutions play?

Eligible financial institutions include Kansas banks which have entered into a deposit participation agreement with the Kansas State Treasurer's Office.

  • Enter into the above mentioned agreement (download the agreement PDF)
  • Accept and review applications from eligible persons
  • Approve or reject applications
  • Forward approved loan packages to the Kansas State Treasurer's Office
  • Fund the approved loans
  • Remit principal payments to Treasurer as they occur
  • Confirm balances with Treasurer every January 1

Who will the borrower be and what role will they play?

A borrower must:

  • Be an individual or developer involved in building houses, adult care or assisted living houses
  • Live in Kansas
  • Each borrower is limited to $2 Million of loans in the program regardless of the lender
  • Use the loaned funds exclusively for the building of single family home(s), and adult care or assisted living homes
  • Apply for Kansas Housing loans at an eligible Kansas bank
  • Complete the Borrower's Certification of Eligibility
  • Pay back the loan