Building a home or commercial space from scratch in Georgia is a big goal—but it’s not out of reach. Whether you’re looking to construct your forever home in the Atlanta suburbs or build a small retail center in Savannah, you’ll need the right financing to get started. That’s where new construction loans come in.
According to recent market data, the average home value in Georgia has climbed over $380,500, and demand for housing continues to rise in metro areas and surrounding counties. With increasing land prices, labor costs, and materials, it's more important than ever to secure the right funding up front.
That’s where many would-be owners run into problems. You need something flexible enough to fund the build—step by step. Let’s find out how new construction loans are perfect for your dream property.
New construction loans are short-term, interest-only loans used to finance the cost of building a new property. Unlike a traditional mortgage—which is issued after a home is built—these loans fund the process from the ground up.
These hard money loans typically cover:
The loan is disbursed in stages, known as “draws,” which coincide with construction milestones—foundation, framing, roofing, and so on. Once the project is complete, the borrower can either refinance into a permanent mortgage or pay off the loan using sale proceeds (for builders and investors).
This type of loan is ideal for:
If you're building in Georgia and need structured, short-term financing to get your project off the ground, new construction loans are likely your best option.
Getting approved for new construction loans for your dream property involves more paperwork than a standard mortgage. Lenders need to see that your project is feasible, legal, and financially supported.
Here’s what most Georgia-based lenders will require:
Lenders typically want to see a credit score of 680 or higher. Lower scores might still be considered—but often at higher interest rates.
Expect to put down at least 20–25% of the total project cost. This minimizes the lender’s risk and shows that you’re financially invested.
You’ll need to provide a full construction plan, including:
Lenders will require you to work with a qualified general contractor. If you plan to self-build, expect extra scrutiny. Most hard money lenders in Georgia won’t fund DIY home construction.
You’ll need local government approvals and permits before the first dollar is disbursed. No permit = no funding.
If you don’t meet the criteria for traditional construction financing—or need fast access to capital—you may want to consider hard money loans.
A hard money lender offers funding based on the value of the property, not the borrower’s creditworthiness. These loans typically have higher interest rates and shorter terms, but they move quickly and are easier to qualify for.
Hard money loans are a solid option for:
For high-potential construction projects that need to get moving fast, they’re often worth the higher cost.
Here’s a step-by-step guide to help you secure new construction for your dream property:
Before applying, you should have a clear idea of how much you’ll need and how you’ll repay it. Will you sell the property after completion? Will you refinance into a mortgage? Build your plan before you build your house.
Hard money lenders in Georgia often reject applications if the builder isn’t licensed or experienced. Work with someone who’s familiar with local codes and has a strong project portfolio.
Gather:
The more complete your file, the faster you’ll get approved.
Discuss options with lenders to determine which product fits your build. Some lenders offer construction-only loans, while others offer construction-to-permanent loans that convert to a mortgage automatically when the project finishes.
Once approved, you’ll close on the loan and start construction. Funds will be released as each phase of the project is completed and inspected.
Ready to build your dream property in Georgia? InstaLend offers fast, flexible new construction loans in Georgia designed for both homeowners and investors. Whether you're building a new home or launching a commercial project, we’re here to finance your success—one phase at a time.
Apply today to get approved and take the first step toward turning your vision into a finished structure.