Construction Financing

Get your house going

Before construction financing* can be provided, come to us with a construction contract signed by your builder or developer. We'll weigh a number of factors, including the cost of the land, construction costs, and the start and completion dates, all to structure a financing approach that makes sense for your project.

One-Time Closing

Your construction loan involves only one application and one closing. It initially covers construction costs and then transitions into permanent financing. Your one-time construction loan may include:

• An initial loan disbursement to finance the purchase of the land to build on
• Loan disbursements over the course of the construction period, to cover construction expenses
• During the construction phase, you may have interest-only payments; Ameris Bank can make scheduled disbursements to your builder during this time
• Once the construction phase expires, the loan converts to a fixed-rate or adjustable rate mortgage

Two-Time Closing

You can also apply for two separate loans: a short-term construction loan and a long-term mortgage. During the construction phase, you will only be responsible for interest-only payments, with monthly payment amounts increasing as funds are utilized. When construction is completed, the mortgage will be considered a loan refinance, paying-off the construction loan. A two-time closing:

• Typically has lower modification and underwriting fees when compared to a one-time closing construction loan
• Provides flexibility to increase loan amount due to cost overruns
• Typically offers lower rates than one-time closing construction loan, as mortgage rate can be locked after construction completion

If the construction of your home is financed by the developer or builder, you will need to purchase your home from them, thus needing a traditional mortgage and not a construction loan.