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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.
Loans are authorized for up to 5 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, and
- live in Kansas, and
- 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
- apply for Kansas Housing loans at an eligible Kansas bank, and
- complete the Borrower's Certification of Eligibility, and
- pay back the loan
