I’m Travis Buis, a loan officer with Elite Home Lending in Myrtle Beach. Building is a real option on the Grand Strand, especially inland where there’s still land. A construction loan in Myrtle Beach pays your builder as the work gets done.

What is a construction loan?

It’s financing for a home that doesn’t exist yet. Instead of handing over the full amount at closing, the lender releases money in stages as the house goes up.

Once the home is finished, the loan either converts into a regular mortgage or gets paid off by one.

What types of construction loans are there?

• Construction-to-permanent. One loan and one closing. It covers the build, then converts to your mortgage. Most people prefer this.
• Construction-only. A short-term loan for the build alone. You then close a separate mortgage when the house is done, which means two sets of closing costs.

Where do people build around here?

Mostly in Carolina Forest and the corridors out toward Conway and Aynor. There are also scattered lots in older beach neighborhoods, where someone tears down and rebuilds.

Building near the coast brings its own rules. Wind-resistance standards, flood-zone elevation requirements and the engineering behind them all affect cost and timing. Build those into the budget at the start, not at permitting.

How does the draw schedule work?

The loan pays out in stages tied to milestones, such as the foundation, framing and roof. An inspection usually confirms each stage before money is released.

While the house is going up, you generally pay only on the amount drawn so far, not the whole loan. Then it converts once the house is finished. Before you sign, ask exactly when that conversion happens and what your rate does at that point.

How is a house that isn’t built yet appraised?

From the plans and specifications. The appraiser values it as though the house were finished. That’s why the plans need to be settled and detailed before you close.

Changing finishes halfway through can affect the value the loan was based on. Upgrades chosen mid-build are where construction budgets usually go wrong, so decide the big things early.

How do you apply for a construction loan?

1. Pick a licensed, insured builder with a track record.
2. Settle the plans, specifications and budget, including a contingency for surprises.
3. Get pre-qualified so you know your budget before you sign a building contract.
4. Close, then build. Draws follow the schedule until the home is done.

If you’re buying new construction from a builder in Carolina Forest instead, the builder’s own lender will pitch hard. It’s worth reading the builder’s lender question in Carolina Forest before you choose. And if you’re weighing a build against fixing up an existing house, a rehab loan covers that route.

Get pre-qualified before you talk to a builder, so you know what you’re working with.

Construction loan FAQ

How does a construction loan work?

The lender releases money in stages as the house is built, usually after an inspection at each milestone. When the home is finished, it becomes a regular mortgage.

What is a construction-to-permanent loan?

One loan with one closing that covers the build and then converts to your mortgage. It avoids paying closing costs twice.

Do you make payments during construction?

Usually just on the amount drawn so far. Full payments start once the loan converts to a regular mortgage.

Can I build near the beach with a construction loan?

Yes, but coastal building rules on wind resistance and flood elevation add cost and time, so plan for them from the start.