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St Cloud MN New Home Builder & Remodeling Contractor

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Schoenberg Construction, Inc. Homepage
  • Home
  • Services
    • Custom Homes
    • Light Commercial
  • Photos
    • Portfolio Photos
    • Construction Photos
    • Kitchen Photos
    • Bath Photos
    • Custom Home Photos
    • Before and Afters
    • Photo by Galleries
    • More Photos
  • Choosing a Contractor
    • Contractor Trust
    • Contractor Questions
    • Homeowner Concerns
  • Directions

Construction Loans | Saint Cloud, MN

Construction Loans Saint Cloud MN— Finding the right construction loans for your new home, or your next building or remodeling project could feel like a balancing act. Here are the basic types of loans that you will be dealing with before, during and after construction:

Construction LoansOption #1 Bridge Loans

These are short-term construction loans designed to span the monetary gap between the closing of your new home and the closing of your current home.

As the name implies, this type of loan provides a financing “bridge” for beginning construction of your new home while you sell your current home. Your current home serves as collateral for the bridge loan. Typically, financial institutions charge a slightly higher interest rate for this type of loan, along with processing and administrative fees.

Most residential bridge loans are written to last for six months or less. You have to be able to afford to carry the three loan payments: the old mortgage, the new mortgage, and the bridge loan, until the closing on your old home.

Option #2 Construction Loan

Construction Loans provide the financing for the construction of your new home. When you’re building a new home, most financial institutions require you to take out a construction loan rather than a conventional mortgage. The construction loan is often blended into a conventional mortgage once the house is finished, in many cases without any additional fees.

Under a construction loan, a builder receives “draws” from the bank as various phases of the construction is completed. The final draw comes when the house is completed. The number of draws depends on the bank and how much upfront money you put toward the construction of your new home. Most banks charge a set fee for each draw. In addition, some financial institutions charge administration fees and a higher interest rate for constructions loans.

Option #3 Conventional Mortgage

Your Conventional Mortgage is the type of loan you will likely have once your new home is finished. Conventional mortgages typically run 15 or 30 years, with the 15-year mortgage usually carrying a slightly lower interest rate. Most financial institutions will allow you to buy down your interest rate to a lower rate by paying points up front. Each point costs one-hundredth of the amount you are mortgaging. For instance, a point on a $100,000 mortgage would cost you an extra $1,000 as part of your mortgage application fees.

Typically, each point that you purchase reduces your interest rate by a quarter of a percent. The conventional wisdom is that buying points is a good investment if you plan on owning your home for five or more years. Each point can save you thousands of dollars in interest over the life of your mortgage. Points also are deductible in many instances on your federal income tax return for the year in which you take out your mortgage.

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Craig at Schoenberg Construction is one of the best Home Remodeling Contractors in St Cloud and Central Minnesota. He always gives honest, fair bids with no lowball, fake pricing. And there’s no sales pressure, EVER! He never uses cheap materials and never engages in sloppy workmanship. Plus, his company is known as one of the top construction and remodeling companies in the Saint Cloud MN area because he always insists on doing every job exactly right.

Give him a call today at 320-252-0911 for your no-obligation consultation.

Why Work With Schoenberg Construction

What We Value

  • Honesty
  • Integrity
  • Trust
  • Satisfaction

What We Do

  • Specific, Accurate Pricing
  • Highly Skilled Carpenters
  • Reliable, Skilled, and Valued Subcontractors
  • Top, Quality Materials
  • Unbeatable Customer Service

What You Get

  • 75+ Years of Combined Custom Construction Experience
  • The Project of Your Dreams for the Price You Were Promised

 

Article Written by Tammy Crosby-Editor, Dream Designs

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What We Value:

  • Honesty
  • Integrity
  • Trust
  • Satisfaction

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Craig Schoenberg
 
Craig Schoenberg, General Contractor and owner of Schoenberg Construction, Inc.
 
He operates one of the top construction companies in central Minnesota.
 

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3040 36th Avenue SE,
Saint Cloud, MN 56304

LICENSE #BC133101

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  • Custom Homes
  • Remodeling
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