How to Finance Ground Up Construction in South Carolina

Building a home or investment property from the ground up in South Carolina offers big rewards—but it comes with even bigger decisions.

From navigating local permitting to securing the right financing, the process can be overwhelming without expert guidance.

This guide breaks down how ground up construction loans work, what regulations matter most in the Palmetto State, and how to fund your project with confidence.

What is ground up construction?

Ground up construction refers to developing a property from an empty lot, starting with land clearing and ending with a finished structure.

Unlike renovation or teardown projects, these builds involve:

• Site preparation and grading
• Foundation work
• Framing, roofing, and systems installation
• Full inspections and final appraisals

In South Carolina, ground up construction is popular in fast-growing areas like Charleston, Columbia, and Greenville.

Developers can tap into demand for new housing while customizing properties from the start.

Why ground up construction makes sense in South Carolina

South Carolina has a unique mix of economic growth, affordable land, and real estate demand.

Here’s why investors and developers are turning to ground up construction:

• Growing population: Columbia and Greenville are among the fastest-growing metros in the Southeast.
• Favorable permitting: Compared to many states, South Carolina offers faster permitting and less red tape.
• Affordable labor and materials: Regional costs are still lower than national averages.
• Booming rental demand: Especially near military bases, universities, and coastal hubs.

Pro tip: Look into Opportunity Zones in SC for potential tax incentives when developing new properties.

How do ground up construction loans work?

These loans cover the entire process from breaking ground to completion.

Unlike traditional mortgages, they release funds in phases (draws) based on project milestones.

Key features of a ground up construction loan

• Loan amounts: Based on loan-to-cost (LTC), typically 70% to 90%
• Terms: 12 to 24 months, with extensions available
• Interest: Interest-only payments during construction
• Draw schedule: Funds released as stages are completed and inspected
• Exit strategy: Refinance to a rental loan, or sell for profit

Park Place Finance specializes in construction loans tailored to developers.

Whether you’re building a duplex or a small multifamily, our team supports fast underwriting and reliable draws.

What to expect during the construction draw process

Understanding how and when funds are released during construction can help you avoid delays and budgeting issues.

Here’s how the typical draw process works:

• Initial draw: Covers land acquisition (if financed) or site preparation.
• Subsequent draws: Released in phases (e.g., foundation, framing, mechanicals, finish-out) after third-party inspections.
• Inspections: A third-party inspector verifies completion before each draw is approved.
• Timelines: Most draws are processed within 3–5 business days.
• Final draw: Issued upon project completion and final inspection.

Prepare a detailed draw schedule upfront and coordinate closely with your contractor to avoid payment gaps or stalled work.

What you need to get approved

Lenders like Park Place Finance evaluate your project holistically.

Here’s what you’ll need:

• Detailed construction budget
• Draw schedule with timelines
• General contractor resume and licensing
• Building plans and permits (or timeline for permit issuance)
• Land ownership documentation or purchase contract
• Exit strategy (refinance or sale)

Submitting a complete application with your construction budget and permits can help speed up the approval process.

South Carolina construction requirements to know

Each city and county in South Carolina has its own building codes and zoning laws.

Still, there are statewide regulations to plan for:

• Seismic and wind load standards: Coastal areas have stricter codes due to hurricane risk.
• Stormwater permits: Required for land clearing over 1 acre.
• Contractor licensing: All general contractors must be licensed by the South Carolina Department of Labor, Licensing and Regulation.
• Energy codes: South Carolina follows the 2009 IECC (with amendments).

In Charleston County, expect stricter design review if building in historic districts.

How to maximize ROI on new builds

Profitability starts with planning.

Ground up construction in South Carolina can yield strong returns when you:

• Choose in-demand locations: Look for areas near major highways, schools, or new employers.
• Design for long-term tenants: Include energy-efficient features, extra storage, and modern layouts.
• Stay under budget: Use fixed-price contracts when possible.
• Plan your exit: Know whether you’ll rent or sell before you build.

Focus on designs that balance cost-efficiency with long-term durability—materials like fiber cement siding and luxury vinyl plank are becoming popular among South Carolina builders for their low maintenance and curb appeal.

Why choose Park Place Finance for SC construction loans?

Park Place Finance brings deep experience with ground up construction in growing markets like South Carolina.

We offer:

• Private capital
• Fast closings
• Flexible draw schedules
• In-house underwriting
• Experience in SC coastal and metro markets

Park Place Finance provides flexible construction loans for builders across South Carolina.

Whether you’re developing in metro areas or growing suburbs, we can tailor financing to your timeline and goals.

Build better in South Carolina

Ground up construction offers freedom, customization, and strong ROI in South Carolina. With the right lender, you can move fast and stay funded through every phase.

Ready to build? Let Park Place Finance help you get started.