Thinking about building in Litchfield Plantation but not sure how to finance it? Coastal builds come with extra steps, and lenders pay close attention to flood zones, permits, and who is doing the work. You want a clear plan that keeps your project moving and your budget in check. In this guide, you’ll learn the loan options, local rules that affect approval, and exactly what lenders want to see. Let’s dive in.
Why coastal rules shape financing
Georgetown County permits and inspections
Litchfield Plantation sits in unincorporated Georgetown County, so your permits and inspections run through the county’s Building Department. The county enforces current building codes and screens projects for flood compliance, which can influence timing for loan draws and final approvals. Plan review and construction timelines vary by project, and full cycles often stretch well beyond a year. You can review permit checklists and inspection steps on the Georgetown County Building Department page.
Flood zones and insurance
Much of the Litchfield Beach and Pawleys Island area is within FEMA-designated flood-risk zones. Lenders typically require flood insurance in these zones, and elevation certificates often affect premiums and underwriting. Expect lenders to verify NFIP coverage before final advances or conversion to a permanent mortgage. Learn how flood risk and coverage work in the area with this local flood insurance overview and see the county’s flood documentation process on the Building Department page.
Coastal setbacks and OCRM
South Carolina’s Office of Ocean and Coastal Resource Management (OCRM) sets coastal rules and setbacks that limit buildable areas and certain protective structures. These limits can affect design, cost, and lender approval, so confirm coastal constraints early in due diligence. For context on beachfront management and setbacks in the state, review this coastal management reference.
Septic, wells, and utilities
Some properties rely on private septic or wells, which require separate approvals. Lenders may need septic and well permits or inspections before final draws or conversion. See county FAQs on utilities and permits in the Georgetown County FAQ.
Choose your financing path
Lot loans
Use a lot or land loan if you are securing a homesite before you are ready to build. These loans often require higher down payments and shorter terms than a standard mortgage, and lenders weigh access, utilities, and buildability. Early coastal due diligence helps reduce risk and can improve terms. Learn how land and custom build financing typically works from this financing overview.
Construction-only loans
A construction-only loan funds the build, then you refinance into a permanent mortgage when the home is complete. These loans are usually short term with interest-only payments and staged draws tied to inspections. They often require larger down payments and can expose you to future rate changes at refinance. See the mechanics in this construction loan explainer.
Construction-to-permanent loans
A construction-to-permanent (one-time-close) loan wraps the build and the long-term mortgage into a single closing. You typically lock your permanent rate up front, pay one set of closing costs, and follow lender requirements like a fixed-price contract, full plans, and contingency reserves. Many regional lenders offer this product; see common features in this one-time-close guide.
FHA, VA, and USDA options
- FHA: Some lenders offer FHA-insured one-time-close construction loans, which can broaden access but include mortgage insurance and program-specific rules. Review FHA resources on HUD’s site and this program update.
- VA: Eligible veterans may access VA one-time-close construction loans, depending on lender participation and builder registration. See current guidance from VA News.
- USDA: USDA eligibility depends on the property location and program rules. Portions of Georgetown County may qualify, and address-level checks are required.
What lenders expect
Underwriting checklist
Prepare a complete package before you apply. Lenders commonly want:
- A signed, fixed-price contract with a licensed builder
- Full plans and specs, itemized budget, and site plan
- Permits or proof of progress and flood compliance documentation
- Builder license and insurance certificates
- Proof of lot ownership or equity, plus your financial documents You can see typical documentation and process details in this construction-to-perm overview. Verify your builder’s South Carolina license with the Contractors Licensing Board.
Draws and inspections
Construction funds are released by draws at set milestones like foundation, framing, and completion. Each draw usually triggers an inspection, and lenders may hold back a percentage until final lien clearance. Expect interest-only payments on amounts drawn and separate inspection or draw fees. See a typical draw process in this lender guide.
LTC and LTV
Lenders size construction loans using loan-to-cost and loan-to-value, and they often cap LTC near 80 percent. Your lot equity can reduce cash to close. Learn how LTC works in this explainer.
Contingencies and escrows
Most lenders require a contingency of about 5 to 10 percent for change orders or overruns. Some also escrow taxes, insurance, and interest during the build. See common reserve and escrow practices in this product summary.
Insurance and title
Expect builder’s risk, general liability, and hazard coverage, and flood insurance when the site is in a special flood hazard area. Lenders usually require proof of flood coverage before final funding or conversion. Review local flood considerations in this flood insurance overview and insurance requirements in this construction loan guide.
Timeline and budgeting
How long it takes
Georgetown County notes that plan review and construction timelines vary, and the full cycle from design to completion can extend across multiple years for complex projects. The active build phase for a single-family home is often 6 to 12 months, with coastal reviews sometimes adding time. Check current processes on the Building Department page.
Costs to include
Beyond hard construction costs, budget for permit and plan-review fees, septic or well approvals and installations where needed, elevation certificates, possible coastal compliance costs, builder insurance, draw inspection fees, and lender closing costs. These items can be material in coastal areas. See county context on the Building Department page.
Taxes and recurring costs
Once your home is complete, Georgetown County property taxes apply. Flood insurance and coastal hazard coverage can increase monthly costs and are often escrowed by lenders. You can review the county context here: Georgetown County overview.
Your step-by-step plan
Confirm buildability early. Review coastal setbacks and OCRM considerations, flood risk, utility access, and septic feasibility. A quick scan of coastal rules like those in this state coastal reference can help you frame questions for local officials.
Choose a lender early. Beyond rates, ask about builder approval, draw schedules, and documentation so you can design to lender requirements. See a typical process in this one-time-close guide.
Hire a licensed SC builder. Verify licensing with the Contractors Licensing Board, and favor builders with Georgetown County and coastal experience.
Assemble a complete package. Plans, a fixed-price contract, itemized budget, permits or permit plan, elevation certificate if available, and builder insurance certificates. Lenders want this before the first draw, as outlined in this lender overview.
Budget for coastal extras. Include contingencies, flood mitigation, elevation documentation, inspection and draw fees, and possible permit delays. County guidance on timelines and reviews lives on the Building Department page.
Decide on one-time-close vs two-close. Weigh one closing and a locked rate against the flexibility of refinancing later. Use this construction-to-perm summary to compare mechanics.
Ready to build?
If you want a clear path from lot to move-in day, you deserve a local guide who understands coastal rules and lender expectations. We help you line up the right lot, connect with trusted builders and lenders, and keep every step organized. Start your Litchfield Plantation plan with Chasing The Tides Group LLC.
FAQs
Can I combine lot purchase and the build in one loan?
- Yes. Many construction-to-permanent loans allow you to include the lot and the build in a single closing, as outlined in this one-time-close guide.
How much down payment do construction loans require?
- Conventional construction loans often need 15 to 25 percent down, and construction-only loans can require 20 to 25 percent or more, per this construction loan explainer.
Do lenders allow owner-builders in South Carolina?
- It is uncommon. Most lenders require a licensed, insured builder, and South Carolina regulates who can perform residential construction, per the Contractors Licensing Board.
How do draw schedules and inspections work?
- Funds are released at milestones like foundation and framing, with inspections at each draw and a possible holdback until final clearance, as shown in this lender guide.
Will I need flood insurance for a Litchfield Plantation build?
- If the property is in a special flood hazard area, lenders typically require NFIP coverage, and your elevation certificate can affect premiums, as discussed in this local flood overview.
What is the difference between LTC and LTV on a construction loan?
- Loan-to-cost measures the loan against total project cost, and loan-to-value measures it against the appraised value when complete; many lenders cap LTC near 80 percent, per this LTC explainer.
