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JD MORTGAGE® connects you with lenders who want to help you build a new home or renovate an existing property. We find the lenders that offer terms specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your construction financing needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
Did you know that Minnesota is the 12th largest U.S. state in area? Known as the “Land of 10,000 Lakes”, many people call the state home or vacation during the summer to escape the heat of the southern states.
All of this interest in the state is causing housing prices to boom. The latest data shows that housing prices have increased by 12.9% over the past year according to the Minnesota Realtors Association. Other real estate experts are reporting that the cost of building a home in Minnesota is around $300 per square foot, inclusive of all the foundation, basement, roof, HVAC and other costs (i.e. new build vs an addition).
To finance the building of a new home, many people in Minnesota turn to a construction loan. It’s important to contact an experienced loan officer when you’re shopping for construction loans because you’ll ultimately want to work with someone who does construction loans on a daily basis.
Continue reading to learn more about the advantages and disadvantages of construction loans, along with a list of lenders offering these types of loans in Minnesota.
A new construction loan can help you get the job done efficiently and affordably when you are ready to build. Here are some of the benefits of a new construction loan:
There Are No Prepayment Penalties. Lenders often assess prepayment penalties to discourage borrowers from paying off their loans early. This can be costly for the lender to do business with, so some lenders have decided to forgo prepayment penalties for construction loans. This benefits the borrower because it means they can pay off the loan early if they choose to without penalty. This gives borrowers more flexibility and freedom than home loans when it comes to their finances.
Your Interest Payments May Be Tax-Deductible. The interest payments may be deducted as a business expense if the construction project is for a business. If the construction project is for a personal residence, the interest payments may be deducted as an itemized deduction on the taxpayer’s individual income tax return.
If you’re considering building or renovating a home in Minnesota, check out these construction mortgage lenders that are available to state residents.
Affinity Plus Federal Credit Union is a not-for-profit member-owned cooperative operating through Minnesota. If you’re looking for a credit union to finance your construction loan, they could be a good option.
We contacted Affinity Plus Federal Credit Union to learn more about their construction loan product. Here are some of the key terms worth knowing:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Wintrust Mortgage is one of the top 20 bank-owned retail mortgage originators in the country that originates in excess of $4 billion in loans annually in all 50 states.
Recently we asked Wintrust Mortgage to provide us with details on their construction loan and this is what they said:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Peoples Bank serves parts of southern Minnesota and has been in business serving individuals and companies since 1945. The bank offers construction loans to those in Iowa looking to build a new property, including financing the purchase of land.
We reached out to People Banks in Iowa to discuss their construction loan and here is what we learned:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Deerwood Bank has over 100 years of serving the community. Started in Deerwood, Minnesota, the bank originally helped miners and settlers showing up in the state thanks to the expansion of the railroad. Fast forward for a bit and Deerwood Bank is now helping citizens with everything from checking and savings accounts to construction loans.
We wanted to know more about Deerwood Bank’s construction loan products specifically, so we reached out to get a few details.
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Northview Bank has served Minnesota and Wisconsin for over 100 years and is a locally-owned bank by the Pogatchnik family. With a long history of financing the purchase of land in both Minnesota and Wisconsin, they are a natural fit for a construction loan.
We wanted to get more details about Northview Bank’s construction loan, so we contacted them to learn the following details:
When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.
Before deciding whether to build a new home, the first thing you need to consider is the project’s cost. It would be best if you had an idea of how much it will cost to build or renovate before you get started. This includes the materials, the labor, and any permits that may be needed.
Another thing to consider is the amount of time it will take to complete the project. You need to have a timeline that you can stick to if you can meet the repayment deadline of your construction loan.
Your final consideration is making sure that you’re working with a seasoned loan officer that understands the construction process from start to finish. Construction loans are a different beast entirely and you should make sure that you have a partner in the bank/loan officer to help you complete the project.
Click on another state to find the best construction loan lenders in that state.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
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