Construction Financing Solutions

Are you looking to build your own home?  Speak with an Ameris Bank Mortgage Banker to learn about how construction loans are structured, and to determine the amount you may want to borrow.  Knowing your borrowing capacity will be an important part of your discussions with your builder.

Before you can receive a construction loan, you will need to provide your Mortgage Banker with a signed construction or purchase contract with your builder or developer.  Information included in this, such as cost of land and construction, construction start and completion date, will impact your loan.

Ameris Bank offers two ways to structure your construction financing:

One Time Closing

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

  • Initial loan payment, if you are paying for land to build.
  • Loan disbursements over the course of the construction period, to cover construction expenses.
  • During the construction phase, you may have interest-only payments, and Ameris Bank can make scheduled payments to your builder during this time.
  • Once the construction phase expires, the loan converts to a fixed rate mortgage.

Two Time Closing

Apply and qualify 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 loan 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.