Ground-up construction financing for builders and developers.
Construction loans from Hard Money Lenders of Myrtle Beach provide specialized financing for ground-up residential and commercial construction projects throughout the Grand Strand region. Unlike renovation loans that improve existing structures, construction loans finance the complete creation of new buildings, from foundation to finish. Whether you're a custom home builder creating one-of-a-kind residences, a developer constructing spec homes for sale, or a commercial builder erecting office buildings or retail centers, our construction loans deliver the capital structure and flexibility that new construction demands.
The Myrtle Beach area continues to experience significant population growth and economic expansion, driving demand for new housing and commercial space. Areas like Carolina Forest, Conway, and Longs are seeing substantial new construction activity as families and retirees relocate to the coast. Commercial development along major corridors provides space for businesses serving the growing population. However, construction financing presents unique challenges that many traditional lenders struggle to address, extended timelines, phased capital deployment, contractor management, and the risks inherent in building from scratch.
Our construction lending program is designed by builders for builders. We understand that successful construction projects require more than just capital, they need financing partners who understand construction timelines, draw schedules, and the realities of building in coastal South Carolina. Our loans feature interest-only payments during construction, flexible draw schedules aligned with project milestones, and terms extending through completion and initial sales or leasing. With loan amounts from $200,000 to $5,000,000 and the ability to finance up to 80% of project costs for qualified builders, we provide the capital foundation for your construction success.
Construction loans serve diverse building projects across the Myrtle Beach development landscape. Custom home construction represents a significant portion of our lending activity, financing one-of-a-kind residences designed for specific homeowners. These projects range from modest coastal cottages in Garden City and Surfside Beach to luxury estates in gated communities like Grande Dunes or Pawleys Island. Our construction loans for custom homes typically follow a two-close structure, construction financing during the build period, followed by permanent financing or homeowner payoff upon completion and certificate of occupancy.
Spec home construction for sale to the public drives much of the residential building activity in growth areas like Carolina Forest, Conway, and Longs. Builders acquire lots, construct homes based on market demand projections, and sell completed properties to homebuyers. Our spec construction loans finance both the lot acquisition and construction costs, with repayment coming from sales proceeds. We work with established builders who understand local market preferences and can execute quality construction on profitable timelines. Interest reserves during construction reduce cash flow pressure until sales generate revenue.
Multi-unit residential construction including duplexes, triplexes, townhomes, and small apartment buildings provides housing density in high-demand areas. These projects offer economies of scale compared to single-family construction and can generate either sales revenue or ongoing rental income. Our construction loans can finance multi-unit residential projects with draw schedules accommodating the phased nature of multi-unit builds, foundations for all units, framing, systems installation, and finish work across the project. Builders may sell individual units as they're completed or hold the entire project as rental investment.
Commercial construction projects including retail centers, office buildings, medical facilities, and industrial warehouses require specialized financing that addresses tenant procurement timelines and lease-up periods. Our commercial construction loans can finance build-to-suit projects for identified tenants or speculative development based on market demand projections. Interest-only payments during construction and initial lease-up reduce carrying costs, while extended terms accommodate the longer timelines often required to secure commercial tenants. We work with developers who have demonstrated capability to complete commercial projects and secure quality tenants.
Construction projects present challenges that distinguish them from other real estate investments and require specialized financing solutions. Cost overruns represent the most common threat to construction profitability. Material price volatility, unexpected site conditions, contractor disputes, or design changes can push project costs beyond original budgets. Even experienced builders encounter surprises during construction that require additional capital. Without adequate contingency reserves and flexible financing, cost overruns can stall projects or force builders to accept lower-quality outcomes.
Construction timeline delays create cascading problems for builders and lenders. Weather interruptions are particularly significant in coastal South Carolina, where hurricanes, tropical storms, and heavy rains can halt exterior work for extended periods. Permit delays, utility connection issues, or contractor availability problems can extend timelines beyond projections. Each month of delay increases carrying costs, interest, property taxes, insurance, and overhead, while deferring revenue from sales or rentals. Builders must build realistic timeline assumptions and maintain schedule flexibility to manage these uncertainties.
Contractor and subcontractor management challenges can derail construction projects. Coordinating multiple trades, excavation, foundation, framing, roofing, mechanical systems, electrical, plumbing, drywall, flooring, painting, and finish carpentry, requires skilled project management. Contractor failures, workmanship disputes, or payment disagreements can halt progress and create expensive delays. Coastal South Carolina's building codes, particularly regarding wind resistance and flood elevation, require contractors familiar with local requirements. Builders must vet contractors carefully and maintain oversight throughout construction.
Market timing risks affect construction projects more than other real estate investments due to extended timelines. A project conceived during strong market conditions may complete during a downturn, affecting sales velocity and pricing. Interest rate increases during construction can reduce homebuyer purchasing power and extend sales timelines for spec homes. Overbuilding in specific markets or product types can create inventory gluts that force price competition. Builders must monitor market conditions throughout construction and be prepared to adjust pricing or hold strategies if markets shift.
Our construction lending approach emphasizes partnership with experienced builders who have demonstrated capability to execute projects successfully. Before funding, we review builder portfolios, financial statements, and project plans to assess construction feasibility. We verify that proposed projects align with market demand and that projected budgets and timelines are realistic. Our goal is to fund projects with high completion probability and profitable outcomes, not merely to make loans that expose both parties to unnecessary risk.
We structure construction loans with draw schedules tied to verified completion of specific construction milestones. Typical draw phases include: site preparation and foundation completion, framing and rough systems, exterior enclosure, interior systems and drywall, and final completion. Each draw requires inspection by qualified professionals to verify work completion before funds are released. This milestone-based approach ensures capital is available when contractors need payment while protecting against over-advancement. We can customize draw schedules to match specific project requirements and contractor arrangements.
Communication and problem-solving characterize our builder relationships throughout the construction period. We maintain regular contact to monitor project progress, address any concerns, and discuss schedule or budget adjustments if needed. If challenges arise, cost overruns, delays, or market changes, we work constructively to explore solutions rather than immediately exercising default remedies. This may involve loan modifications, additional advances for unexpected but necessary costs, or timeline extensions. Our success depends on your success, so we approach construction lending as a collaborative partnership rather than a transactional arrangement.
Our construction loans are available for projects throughout the Grand Strand building markets including Myrtle Beach, Conway, North Myrtle Beach, Carolina Forest, Surfside Beach, Garden City, Little River, Longs, and surrounding Horry County communities where new construction demand continues to grow.
We finance residential construction including custom homes, spec homes for sale, and multi-unit residential projects (duplexes, townhomes, small apartments). We also finance commercial construction including retail buildings, office space, medical facilities, and light industrial projects. We do not finance heavy industrial, infrastructure, or agricultural construction. Projects must be located in South Carolina within our lending area, and builders must demonstrate relevant construction experience.
Construction loan proceeds are disbursed in stages as work is completed and verified. A typical draw schedule includes: initial lot acquisition and site prep draw, foundation completion draw, framing/rough systems draw, exterior enclosure draw, interior systems/drywall draw, and final completion draw. Each draw requires inspection by a qualified inspector to verify work completion before funds are released. Draw requests are typically processed within 3-5 business days of inspection approval. We can customize draw schedules based on project specifics.
We typically finance 75-80% of total project costs (lot plus construction) for experienced builders with strong track records. First-time builders or those with limited experience may qualify for 70-75% financing. The borrower's equity contribution must be verified and available at closing. We calculate loan amounts based on the lesser of project costs or completed value, ensuring adequate equity cushion to protect against market fluctuations or cost overruns.
Construction loan terms typically range from 9 to 18 months depending on project scope. Single-family custom homes usually require 9-12 months, spec home developments 12-15 months, and commercial projects 12-18 months. Extensions are available if construction takes longer than expected due to weather delays, permitting issues, or other circumstances beyond the builder's control, though extension fees apply. Interest-only payments are due monthly during the construction period.
We typically require licensed and insured general contractors to oversee construction projects. This ensures professional management of subcontractors, adherence to building codes, and proper quality control. Owner-builder arrangements may be considered for experienced builders with appropriate licensing and insurance, but we scrutinize these applications carefully. If you plan to serve as owner-builder, you must demonstrate significant construction experience, proper licensing, and adequate insurance coverage.
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