New Construction Loans in Georgia

Frequently Asked Questions

What are the requirements for getting a construction loan?

Construction loan approval requires a detailed build plan, permit documentation, a licensed contractor agreement, and a budget with line-item costs. Most lenders also expect land ownership or a signed purchase contract. Down payments generally range from 15% to 20%, and the minimum credit score is typically 660. Funds are distributed in draws tied to project milestones. We also evaluate builder experience, market comps, and exit strategy. If your documents are organized and your plan is strong, approval tends to move quickly. Our goal is to make construction financing straightforward for active real estate investors.

How do home construction loans differ from traditional financing options?

Home construction loans differ from traditional mortgages in several ways. First, they disburse funds in phases aligned with construction progress, instead of all at once. Borrowers typically make interest-only payments during the build phase, keeping early costs lower. Second, these loans are short-term—usually 12 to 24 months—and are replaced by a long-term mortgage upon completion. Traditional loans are better suited for finished homes, while construction loans focus on the project’s timeline, permits, and contractor quality. This financing model works especially well for builders, developers, or investors planning to refinance after the project is completed.

What credit score is needed to qualify for new construction financing?

Most new construction financing programs require a credit score of 660 or higher. That said, exceptions can be made based on the strength of your project. Lenders will also assess the land status, contractor track record, liquidity, and exit strategy. A lower score doesn’t always disqualify you, especially if the loan is well-structured with proper documentation. These loans are designed with investors and builders in mind, so underwriting focuses more on the deal than just personal financials. A higher credit score does help lower your rate and improve loan terms, but strong planning often outweighs weak credit.

Are construction loans available to small business owners or just individuals?

Construction loans are available to both individuals and small business entities. In fact, many real estate investors and developers choose to borrow under an LLC or corporation. BNB Lending works with a variety of business structures, provided someone with 20–25% ownership offers a personal guarantee. This makes it easier for business owners to qualify—even without W-2 income. Instead, we focus on the viability of your project, the strength of your team, and the plan to complete construction. If you're building under a business name, our structure offers the flexibility and speed you need to move forward.

What is the typical loan rate for construction financing?

Construction loan rates typically start around 5.50%, though your final rate depends on credit score, experience, and project complexity. These loans are interest-only during construction, keeping costs lower while the home is being built. Once the project is complete, many borrowers refinance into a long-term mortgage or DSCR loan. We price each deal based on builder history, project comps, and exit strategy. If you’re well-prepared, you may secure more favorable rates and faster closings. Our flexible approach supports developers and investors who need capital quickly but still want reliable, competitive terms.

What types of loans are best for new construction projects in Georgia?

The best loans for new construction projects in Georgia are draw-based interest-only programs designed for ground-up builds. These construction loans fund up to 85% of land costs and 100% of vertical construction. Investors in cities like Atlanta, Savannah, and Augusta use these loans for STRs, duplexes, or multifamily developments. After construction, many refinance into long-term mortgages or DSCR loans. Georgia borrowers benefit from our flexible timelines, quick closings, and no prepayment penalties. This structure works well for builders and investors looking to scale projects without locking themselves into rigid financing before stabilization.

Explore new construction loans and other STR loans in neighboring states like Washington and Montana to explore more deals beyond Idaho.