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).
- Convenient access to funds.
- Think retains servicing of the mortgage.
How to apply:
Construction loans are available for properties in Minnesota to existing customers, or new customers who live or work in Minnesota.