Construction Loan

Think offers two types of construction loans. We can assist you in determining which type best fits your needs.

One-Time construction closing:

  • Single approval process combines the home construction loan and the permanent loan in one.
  • Lower loan costs. You save money by paying reduced closing costs once at modification.
  • Best for those who can accurately anticipate their final cost.

Two-Time construction closing:

  • Financing is available to pay costs incurred during the construction phase with a second closing for the permanent loan to payoff interim financing.
  • Flexibility to change the permanent loan product, term and amount. Fees and closing costs are generally higher, but you can receive additional credits at the permanent financing closing.
  • Best for those who are not able to accurately anticipate final costs.

Both loans feature:

  • Up to 12 months to complete the home.
  • Interest is accrued only on the amount advanced.
  • Rate is locked up to 375 days prior to the close of the construction loan. If you lock more than 100 days, and then the rate drops within 55 days of closing your permanent loan, you will have the one-time opportunity to reset your loan to the lower rate.
  • Origination fee for loans up to $424,100 is 1% of loan amount with a cap of $1,500 at construction closing.
  • Origination fee for loans greater than $424,100 is capped at $2,500 at construction closing.
  • Eligible property types: 1 unit owner occupied (primary and vacation homes).

Other benefits:

  • Convenient access to funds.
  • Think retains servicing of the mortgage.

How to apply:

We can walk you through both options and help you determine which type best fits your needs. To get started you can apply online, visit one of our branch locations, or call us at 1-800-288-3425.


Construction loans are available for properties in Minnesota to existing customers, or new customers who live or work in Minnesota.

1-800-288-3425
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Insurance products are offered through Think Insurance (MN license # IA-538), not Think Mutual Bank. Insurance products are not FDIC insured, are not insured by any federal agency, and are not a deposit or guarantee of Think Mutual Bank. This is not a policy. For a complete statement of coverages and exclusions, please see the policy contract.

The Investment Professionals of Think Financial Planning are Registered Representatives and Investment Adviser Representatives with/and offer Securities and Advisory Services through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered by CES Insurance Agency. Investments are not FDIC insured, not bank guaranteed, not insured by any federal agency and may lose value. Check the background of this firm on FINRA's BrokerCheck. Think Financial Planning is headquartered at 5200 Members Pkwy NW, Rochester, MN 55901.

This information is provided for new customers who live or work in Minnesota, and for existing customers residing in the states of AR, AZ, CA, CO, FL, GA, IL, IN, IA, KS, KY, MA, MD, MI, MN, MO, MT, NE, NM, NV, NY, ND, NC, OH, PA, SD, TN, TX, UT, VA, WA, WI, WY. No offers may be made or accepted from any resident outside of these states due to various state regulations and registration requirements regarding investment products and services.