Construction Loans

Construction Loan

Home Construction Loans


There are two parts to a construction loan.

  1. The first part is an interest only period that is used during the construction phase of your new home.
  2. The other part of a construction loan is the permanent financing.

This is why you will see lenders calling their construction loan program, Construction/Perm Loans. 

Need a Land Loan/Lot Loan? We offer those as well. Click Here






Here is some basic information that you need to know about construction loans.

Advantages Of Using South State Bank

Permanent Financing

Here is an example of how the process should work.

Let's assume that you own a lot and you are ready to build on it.

1. You need to get pre-approved with a lender to ensure that your credit and income meet the parameters to obtain financing.

2. You need to find a builder that you are comfortable with. There are some resources for you to do that. The Madison County Home Builders Association in Huntsville, or The Birmingham Builders Association, or in Mobile The Home Builders Association of Mobile can help.

3. Once you have found a builder and have a budget and plans in place, your next step is to secure financing.

4. Now our process starts. At this point, you are between 4 and 6 weeks from closing on the construction loan. We will order an appraisal that is based on the plans and specs and the value of the lot. I will also send all of this information to an underwriter who will underwrite your loan. Once we have everything, then we can close on your construction loan.

After Closing on your Construction Loan

1. Once you close on your construction loan, we will set you up an account for you to disburse money from.

2. Now you are ready for the builder to get started. The builder may ask for an initial disbursement to buy materials and pay his workers. After the initial disbursement, the bank will guide you through getting additional disbursements as the work is completed. The bank will inspect the new build to ensure that the build meets the disbursement requirements.

3. During the building process you will need to have a builder's risk insurance policy in place.

Construction Loan Programs that we offer. 

 7/1 Arm 

On this program that we offer, the first 12 months is interest only on what you have drawn.

Here is a list of items that we will need you to have in order to get started on your construction loan. 

If you would like to sit down and talk about a construction loan, please feel free to contact me. Look at what previous customers have to say Zillow.

The information listed on this website is subject to change and some of the information may have already changed. Any loan program or terms listed have to follow SouthState Banks current Guidelines, no matter what this website says.  

Get Approved Now

Fill out a loan application to get a loan estimate and see how much of home build that you can afford. 

Apply Now