Construction loans,
BOL, and your land equity.

The Short Answer

If you own land in North Georgia that’s paid off, you may be able to build a TIH home with little to no cash out of pocket beyond closing costs. A construction-to-permanent loan funds the build and then converts to a regular mortgage. Your land equity replaces the cash down payment most builders require.

How a Construction Loan Actually Works

A construction loan is short-term financing — typically 9 to 12 months — that funds the build itself. The lender disburses money in stages (called “draws”) as work is completed and inspected. You pay interest only on the amount drawn, not the full loan amount.

When construction finishes, the loan converts to a regular 15- or 30-year mortgage. The combined product is called a construction-to-permanent loan, or “C-to-P” for short. One closing, one set of fees, one signature event.

Build on Your Own Lot — The Equity Move

When your land is paid off, a construction lender values that land as part of the deal. If your lot is appraised at, say, $150,000 and your build budget is $500,000, the total project value is $650,000. The lender typically lends up to 80–90% of that total — which can be more than the $500,000 cost of construction.

The result: your existing land equity covers the down payment, often with cash to spare. In practice this means many BOL buyers close their construction loan with $0 cash out of pocket beyond the standard closing fees (~$3,000–$6,000 depending on the lender).

Pickens Community Bank — TIH’s Financing Partner

For BOL projects, we refer buyers to Pickens Community Bank. They are a North Georgia community lender that handles construction-to-permanent loans well, with local underwriting and direct phone access to real loan officers.

What that means in practice:

• Decisions in days, not weeks
• Loan officers who understand the BOL structure
• Local appraisers familiar with North Georgia lot values
• Direct communication when issues come up (rare, but they happen)

You can use any lender that does construction loans. We refer to Pickens because they’ve consistently been the easiest to work with for our buyers.

What You’ll Need to Apply

1. Land documentation — deed, recent tax assessment, any survey on file
2. Income verification — 2 years of W-2s or 2 years of tax returns if self-employed
3. Asset statements — 2 months of bank statements, retirement account statements
4. Credit history — the lender pulls this
5. Construction contract from TIH — signed, with detailed cost breakdown
6. Plans and specifications — from your TIH floor plan or custom design
7. Builder credentials — TIH provides these directly to the lender

Interest Rate and Costs

Construction loan rates are typically slightly higher than regular mortgages — usually 0.5–1.0% above the standard 30-year rate at any given time. That premium covers the higher risk during construction. Once the loan converts to a permanent mortgage, the rate adjusts to the agreed-upon permanent rate.

Closing costs are similar to a regular mortgage closing: typically 2–4% of the loan amount for a C-to-P loan (lower than two separate closings, which is why C-to-P is preferred).

What If My Land Isn’t Paid Off?

You can still BOL, but the math changes. If you owe $80,000 on a lot worth $200,000, you have $120,000 in equity available. That equity can still cover much or all of the down payment depending on the build cost. Your lender works the numbers.

For lots that are mostly leveraged (more than 70% loan-to-value), a regular construction loan with a cash down payment is usually the cleaner approach.

The Timeline From Loan to Move-In

1. Free land evaluation with TIH — we walk the lot, give you a realistic build estimate. (1 week)
2. Plan selection or custom design — you choose a 2026 plan or design from scratch. (1–4 weeks)
3. TIH provides a detailed construction contract with cost breakdown. (1 week)
4. Apply for construction-to-permanent loan with Pickens or your chosen lender. (2–4 weeks to close)
5. Construction begins. (9–12 months through the 18-stage process)
6. Orientation and closing. (Loan converts to permanent mortgage)

Total: typically 11 to 14 months from your first call to TIH to handing you the keys.

Talk to TIH About Financing