Minnesota New Construction Loans
Minnesota has 6 new construction hard money lenders serving the state. The average amount loaned is $502,727. Interest rates for private loans average around 10.8%. The mean length offered for loans is 18 months. A typical loan offered in the state includes a 3.5 percent origination charge. 74% is the average loan-to-value offered for for loans in Minnesota.
Loan Example 1
Sean wants to acquire a vacant lot in Chaska, MN and construct a home and sell it. In addition to the $330,000 cost of the land, Sean expects he will have around $300,000 in building expenses to complete the house. Dynamic Funding Group issues a 80% loan to value (LTV) construction loan to Sean so he can fund the project. They agree to a 13% rate of interest for 6 months plus a 2 point origination fee. They agree not to enforce a pre-payment penalty and they will fund the building expenses in several draws. By this loan scenario, Sean will have to contribute the following: 1) $126,000 cash down (based on the 80% LTV), 2) a $10,080 origination charge ($504,000 loan principle x 2%), and 3) $5,460 monthly payments. Sean 's plan is to sell the new home for $850,000. If he succeeds, he will pocket a net profit of $177,160 after subtracting all costs ($504,000 principle, $126,000 cash down, $10,080 origination fee and $32,760 for 6 months of payments).
Loan Example 2
Clarissa decides to acquire a land lot in Hopkins, MN and construct a new house and sell it. She applies for a construction loan from West Star Lending with these terms:
If Clarissa succeeds in her goal of a $1,060,000 sales price, the final numbers of the project will be as follows:
$1,060,000 sales price
- $603,500 note principle (85% LTV)
- $106,500 cash paid at closing (15% on 85% LTV)
- $18,105 origination fee (3% of the $603,500 principle amount)
- $126,735 total interest paid (18 months x 14% interest)
= $205,160 total profit
Sharestates is a Great Neck, NY based hard money lender. They provide loans in 46 states across the US. They offer lending solutions for a variety of needs and situations, including hard money loans for commercial properties, fix ...
Investor Rehab Funding is hard money lender headquartered in Atlanta, GA. They provide loans in 40 states throughout the US. They offer fix-and-flip hard money loans, private refinancing, investment property loans, and new construction loans. ...
TNS Loans is a Littleton, CO based hard money lender offering loans throughout Colorado, Kansas, Minnesota, Missouri, Oklahoma, Utah, and Wisconsin. They offer refinancing, commercial hard money loans, hard money bridge loans, new construction loans, and fix-and-flip ...
Headquartered in Miami Beach, FL, YC Funding is an asset-based lender offering loans in 23 states across the United States. They offer construction loans, cash out loans, buy and hold loans, short term bridge loans, fix and flip hard ...
Lima One Capital is a hard money lender based in Greenville, SC providing loans in 40 states across the US. They offer loans for many different scenarios, including fix-and-flip hard money loans, construction loans, refinancing, and investment property ...
American Land and Capital is a Lakeville, MN based hard money lender. They offer loans in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, and Nebraska. They offer builder loans and fix and flip loans. ...