Best Construction Loan Lenders in Minnesota 2026: Top 7
MJ
Mark Johnson
Minnesota Construction Loan Expert | 15+ Years Experience
January 22, 2026
Looking for the best construction loan lenders in Minnesota? Building a custom home in MN? We ranked the top 7 lenders offering competitive rates, flexible terms, and construction-to-permanent loans.
7.15%
Avg Construction Rate
15%
Down Payment
12 mo
Build Timeline
$450K
Avg Build Cost
🏆 Top 7 Construction Loan Lenders Minnesota 2026
#1 BEST OVERALL
USAA - Best Construction Loan Minnesota
⭐ 4.8/5
800+ MN builds
Why #1:
- 💰 Best rates: 6.95%-7.25% APR
- 🏆 Construction-to-permanent (one closing)
- ⚡ 10% down minimum
- 📍 Strong in Twin Cities metro
- 🎯 Military discounts available
Best For:
Minnesota homebuilders wanting lowest rates + one-time close
📊 Minnesota Construction Costs by Region 2026
| Region | Cost per Sq Ft | 2,500 Sq Ft Home | Land Cost |
|---|---|---|---|
| Minneapolis Metro | $200-$260/sq ft | $500K-$650K | $120K-$250K |
| St. Paul | $190-$250/sq ft | $475K-$625K | $100K-$200K |
| Rochester | $160-$210/sq ft | $400K-$525K | $60K-$120K |
| Duluth | $150-$200/sq ft | $375K-$500K | $50K-$100K |
❓ FAQ: Minnesota Construction Loans 2026
How much does it cost to build a house in Minnesota?
Minnesota Average Construction Costs (2026):
- Minneapolis Metro: $200-$260/sq ft ($500K-$650K for 2,500 sq ft)
- St. Paul: $190-$250/sq ft ($475K-$625K for 2,500 sq ft)
- Rochester: $160-$210/sq ft ($400K-$525K for 2,500 sq ft)
- Duluth: $150-$200/sq ft ($375K-$500K for 2,500 sq ft)
Add: Land cost ($50K-$250K depending on location)
Can I build a house in Minnesota winter?
YES - but with special considerations.
Winter Building Challenges:
- Foundation work difficult below 32°F
- Concrete curing requires heating
- Snow removal adds costs
- Shorter daylight hours
Best Strategy:
- Start foundation in spring (April-May)
- Frame in summer (June-August)
- Interior work in fall/winter (Sept-March)
- Complete in 12 months