Whether it is bricks and mortar or wood and nails, let our experienced Home Loan Team work with you to develop a strong financial plan for purchasing everything from the land to the light fixtures. We want you to build your home with confidence, knowing you are receiving the best rate and understand the process as we work with you.  
Local Mortgage Servicing  
Mid-Minnesota has built our Construction Loan program around your needs - at the center you will find Local Home Loan Servicing, meaning you can receive the great rates offered on the secondary market, but MMFCU will still service your mortgage! So, if questions arise 10 days, 10 months or 10 years down the road you will be able to take advantage of the credit union service you've grown to expect.  
What you can look forward to...  
  • An explanation of the types of Construction Loans available, as well as professional assistance in helping choose the one that is best for you - whether you are planning to build your first home or vacation home.
  • Flexible terms to suit your needs, with 10-, 20- and 30-year mortgages*
  • Competitive interest rates while you build and when the home is complete
  • One-time closing costs, saving you thousands of dollars
  • No penalties on early pay off
  • Interest rate protection throughout the construction process with the final rate modified upon completion of the home
  • Financing for up to 90 percent of the value
    Pre-approval is the First Step 
    When you visit, you will need to bring...  
  • If you are salaried: provide one year's W-2 and current pay stubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
  • If you own rental property, bring copies of rental agreements and two year’s tax returns.
  • Previous month's bank statements for each bank, stock and mutual fund account to show sufficient funds for down payment and closing costs.
  • Recent copies of any stock brokerage or IRA/401K accounts that you may have.
    Once approved, you will need to provide...  
  • House Plans
  • Warranty Deed and Abstract
    If you are buying land as part of the Construction Loan...  
  • A copy of the Purchase agreement for land
    If you will be using a General Contractor to build your home...  
  • Copy of your signed builder’s contract
    If you will be acting as your own General Contractor... 
  • Completed sworn construction statement
  • Bids for all subcontractor labor and materials
    What happens next? 
    The title company prepares the title commitment, ensuring there are no liens on the property. It is important to wait until your Construction Loan is closed before starting any type of work or moving materials and equipment on the property. 
    You then have six or nine months to complete construction, during which time you can take up to five advances, or disbursements, of your loan funds. The only payment(s) you make during construction is interest, which is due at the time you take an advance. When requesting an advance from the title company, allow up to 72 hours for your request to be processed (an inspection may be required at this time).  
    Time to move in! 
    Along with unpacking boxes and making your house a "home", your Construction Loan will be modified to a permanent Home Loan, and the best part is your servicing stays with the credit union. Visit our Home Loan Service Center to see current rates. 
    Rates subject to change.  Equal Housing Lender. 
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