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Construction Loans

March 22, 2019

Construction loan 670x336 web.jpg

Learn more about the other loan options available!

Building a New Home

Congratulations, you've decided to build your new home from the ground up! Constructing your home is an exciting process and our lending team is here to walk alongside you every step of the way.

The Bank of Elk River offers a variety of solutions designed to help you finance the building of your new home. For more information on construction loans, speak with a construction loan lenders today!

Contact a Construction Loan Lender

  • What do I need to start the process?

    • Completed Application
    • Most recent 2 years tax returns with W2s
    • Most recent 60 days bank statements
    • Most recent 30 days paystubs
    • Sworn Construction Statement
    • House Plans
    • Property ID for land if already owned OR Purchase Agreement for land being purchased as part of the construction loan
  • Things to know:

    • The Bank of Elk River can lend up to 80% of the "as completed" appraisal
    • Self-contracted projects are allowed on a case-by-case basis
    • The title company will handle all draws and collect lien wavers
    • The Bank of Elk River will handle all property inspections
    • Property purchase and closing costs may be part of the first draw at closing
    • All construction loans must be refinanced once the home has been completed.
  • Estimated Fees:

    Origination$2,500
    Appraisal$450
    Title Insurance$750
    Miscellaneous Title Fees$835
    Recording Fees$92
    Mortgage Registry Tax$600
    Flood Determination$20
    Credit Report$10
    Estimated Total*$5,257

    *Based on a $250,000 loan amount.

For more information about construction loans:

Main Street Office:
Corey Wemple: 763.274.6890 - NMLS #956625
Sue Engholm: 763.241.8561 - NMLS #539457

School Street Office:
Beth Keller: 763.241.8559 - NMLS #539118

Otsego Office:
Shawn Butler: 763.241.8556 - NMLS #932424

Zimmerman Office:
Kelly Vold | 763.856.6800 - NMLS #863295

*4.99& Annual Percentage Rate. $1,000 lender credit towards closing costs. Customer is responsible for any closing costs exceeding $1,000 lender credit. Property insurance is required. 80% maximum loan-to-value. Loans subject to approval. Other restrictions or conditions may apply. Promotion is subject to change without notice. Contact the bank for details. Offer expires April 30, 2019.