Savannah's growth story is the port, logistics and the Hyundai plant in Bryan County, and it has pushed new housing out to Pooler, Richmond Hill and Effingham County. In the city, infill building runs into historic review and flood elevation.
In short: LendingStreet finances ground-up construction on 1-8 unit investment properties in the Savannah area, with the loan sized on loan-to-cost and funds released through inspected draws. Typical projects include build-to-rent homes in Pooler, Rincon and Richmond Hill, spec homes in Effingham County, and infill homes and duplexes in Savannah's Eastside, Westside and Midtown neighborhoods. Our investor loans are business-purpose loans on non-owner-occupied property, and most projects exit by sale or a refinance into a DSCR loan.
West of the city, Pooler, Port Wentworth and Bloomingdale sit close to the port, the airport and warehouse employers. Effingham County, around Rincon, Guyton and Springfield, has some of the region's lowest land costs, and Bryan County, including Richmond Hill and the areas near the Hyundai Metaplant, has drawn new subdivisions.
In Savannah itself, infill lots in the Eastside, Westside, Thomas Square, Starland and parts of Midtown can take new single-family homes and duplexes. The Landmark Historic District and Victorian District are tightly controlled, and new construction there needs design approval.
| Project type | Where it tends to fit | Local issues to check |
|---|---|---|
| Build-to-rent houses | Pooler, Rincon, Richmond Hill, Port Wentworth | Subdivision approvals, wetlands, drainage |
| Spec single-family | Effingham County, Bryan County | Resale comparables, HOA rules |
| Infill single-family and duplex | Eastside, Westside, Starland, Midtown | Historic review, flood elevation |
The City of Savannah's Historic District Board of Review and related preservation bodies review new construction in the historic districts, and the standards cover height, massing and materials. Outside those districts, the city's zoning ordinance and the Chatham County-Savannah Metropolitan Planning Commission shape what can be built.
Coastal Georgia has extensive wetlands, and larger lots or subdivisions may need wetland delineation and federal or state permits. Pooler, Richmond Hill, Rincon and the counties each run their own permitting offices.
Low elevations, tidal flooding and hurricane exposure mean many lots need fill or raised foundations to meet floor elevation rules. Sandy soils drain well in places but can require compaction testing. Insurance on the finished home is a major part of the exit DSCR.
Ground-up loans are sized on loan-to-cost (LTC): the loan is a share of the total project cost, which includes land, hard construction costs and soft costs such as plans, engineering, permits and fees. The exact LTC and terms are set per project, based on the plans, the budget, the location and the builder's record.
The appraiser also estimates the completed value. A project where the finished value comfortably exceeds the total cost gives everyone room if the budget runs over or the market softens.
This example is illustrative and not a quote. An investor builds a 4-bedroom build-to-rent home in Rincon. Land costs $55,000, the hard-cost budget is $275,000 and soft costs such as plans, permits, fees and builder's risk insurance are $27,000, for a total project cost of $357,000. If the project is sized at 80% of total cost, the construction loan is $285,600 and the investor brings $71,400 in cash or land equity.
At completion the property appraises at $395,000 and leases as one 4-bedroom, 2.5-bath home, for $2,500 a month. Because coastal insurance and taxes take a meaningful share of the rent, the investor plans the DSCR refinance at 70% LTV instead of the 75% maximum. That loan is $276,500, so the investor pays down about $9,100 of the $285,600 construction loan with cash and leaves more equity in the property. Estimated principal and interest on a 30-year loan is about $1,886; with taxes of $330 and insurance of $210 a month, the payment is about $2,426 and the DSCR is about 1.03x.
That clears the 1.0x standard minimum. Interest during construction and closing costs are not shown, and your numbers will differ.
| Item | Amount |
|---|---|
| Land | $55,000 |
| Hard costs | $275,000 |
| Soft costs | $27,000 |
| Total project cost | $357,000 |
| Construction loan at 80% LTC | $285,600 |
| Completed value | $395,000 |
| DSCR refinance at 70% LTV | $276,500 |
| Estimated principal and interest | $1,886 |
| Taxes and insurance | $540 |
| Monthly rent | $2,500 |
| DSCR | About 1.03x |
The loan is not handed over in one piece. After closing, construction funds are released through a draw schedule tied to milestones like foundation, framing, roof and windows, rough-ins and final completion. Each request is checked by an inspection before money goes out.
Subcontractors usually need to be paid before a draw lands, so keep working capital on hand. Map the timing with our construction draw schedule calculator.
Georgia assesses at a 40% assessment ratio of fair market value, and the Chatham County Board of Assessors picks up new construction once completed. Rentals do not get homestead exemptions, and millage rates differ by city and county, so compare Pooler, Savannah and Effingham County tax lines when choosing a lot.
Georgia uses attorney closings, and the intangible recording tax applies to some long-term notes, such as the DSCR loan you refinance into. Ask your closing attorney for an estimate.
Gather these first. A borrower with no completed builds and no experienced general contractor, or a project with no plans or path to permits, usually does not qualify.
We finance business-purpose construction on non-owner-occupied 1-8 unit properties across Chatham, Effingham and Bryan counties. Send the address, plans, budget, builder details and your exit plan, and we will review the LTC, the draw schedule and the completed value. For statewide context, see our Georgia construction loans page. Call (877) 298-1001 or use the form below to get a quote.
Yes, with design approval. The Historic District Board of Review sets standards for height, massing and materials. Budget extra time and design cost.
Yes. Single-family and 2-4 unit build-to-rent projects in Bryan, Effingham and western Chatham counties fit our program with plans, permits and an experienced builder.
They can. Larger lots or new subdivisions may need a wetland delineation and permits before work starts. Ask early.
At a 40% assessment ratio of fair market value times the local millage, with no homestead exemption. Use the completed value in your estimate.
Experience matters. A borrower with completed builds, or one working with an experienced licensed general contractor, is in a much stronger position. Projects with no build track record on the team usually do not qualify.
Most investors refinance the finished, leased property into a long-term DSCR loan that qualifies on rent, with no W-2s or tax returns. Seasoning rules vary by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property. We do not finance a home you or your family will occupy.
Often soon after completion and lease-up, but seasoning rules for a DSCR refinance vary by program. Plan the timing with us before you start the build.
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