Thinking about building or buying a brand-new home around Savannah but unsure which incentives can lower your costs? You want a simple plan that fits your budget and timeline without surprises. In this guide, you’ll learn how local programs, state and federal financing, and energy rebates can make new construction more affordable in Savannah and Chatham County. Let’s dive in.
What counts as an incentive
Not all incentives are cash. In Savannah, you’ll see three types:
- Financial help that reduces your out-of-pocket costs, like down-payment assistance or gap financing for affordable units.
- Entitlement relief that lets projects add units or build on smaller lots, which can cut land cost per home.
- Energy and utility rebates that lower utility bills and sometimes upfront equipment costs.
Understanding which bucket a program fits into helps you decide how it affects your purchase price, loan choice, and long-term costs.
Local Savannah programs
Savannah adopted a citywide housing strategy that funds local solutions. The City of Savannah’s Housing Savannah initiative and Savannah Affordable Housing Fund (SAHF) support down-payment assistance, affordable construction, and repairs. These local tools can lower development costs or support buyer assistance for qualified homes. You can explore the city’s program overview on the City of Savannah housing information page at the link for Housing Savannah and SAHF resources.
- Learn more: the City of Savannah housing information page outlines programs and contacts for SAHF and related efforts. City of Savannah housing information
The city also created an Affordable Housing Overlay District (AHOD) that offers density and lot-size flexibility in exchange for certified affordable units. This is a land-use incentive that can make smaller infill homes and missing-middle housing more feasible. See the official details in the City Council agenda packet. Affordable Housing Overlay District agenda
Public infrastructure can function like an incentive too. The city has used SPLOST funds for site work and utilities on targeted projects, which shortens timelines and lowers upfront costs for builders. The Dundee Cottages collaboration is a recent example. Dundee Cottages infrastructure partnership
The Chatham-Savannah Land Bank Authority can reduce land costs by transferring or leasing lots for mission-driven development. Ask whether a project you’re considering benefited from a land-bank transfer or city infrastructure support, since that can impact price and long-term affordability terms.
State and federal help
For affordable new construction, Georgia’s Department of Community Affairs (DCA) funds local partners through the Community HOME Investment Program (CHIP). CHIP dollars are often used as gap financing to build or rehab single-family homes for eligible buyers. DCA Community HOME Investment Program
If you’re buying a new home, the Georgia Dream Homeownership Program offers low-interest first mortgages and down-payment assistance through participating lenders, subject to income and price limits. Many buyers use Georgia Dream to purchase new construction once the home is complete and ready for permanent financing. Georgia Dream program overview
For multifamily or deeply affordable projects, tools like LIHTC and HOME/HOME-ARP are often layered with local SAHF funds. These are typically developer tools rather than buyer programs.
How to finance a build
When you build a home, your loan structure matters a lot:
- Construction-to-permanent (one-close) combines the construction loan and long-term mortgage into one closing, which can simplify the process and lock a rate for the permanent phase. See the lender-side rules in Fannie Mae’s guide. Fannie Mae construction-to-permanent
- Two-close loans split the construction financing and the final mortgage into separate closings. Your lender will advise which path fits your credit, builder, and timeline.
Program overlays can help with affordability:
- USDA Guaranteed loans may allow 100% financing in eligible rural areas, including construction-to-permanent options through approved lenders. Portions of Chatham County outside city limits may qualify. USDA Guaranteed Loan Program
- FHA and VA can finance newly built homes when the lender and builder meet program requirements. Ask a participating lender early about appraisal, inspections, and warranty standards for new construction.
Energy rebates that matter
Energy incentives can improve comfort and reduce total cost of ownership:
- Georgia Power’s Home Energy Improvement Program (HEIP) offers rebates for measures like attic insulation, air sealing, and efficient heat pumps. Builders and buyers can capture per-measure and whole-home rebates with the right specs and documentation. Georgia Power HEIP
- Georgia’s Home Energy Rebates (HER/HEAR) provide income-based rebates for electrification and whole-home efficiency upgrades funded by the federal IRA. Some new-home installs may qualify when equipment meets program rules. Georgia Home Energy Rebates
- Federal tax credits for qualifying clean-energy equipment, including solar and heat pumps, can further reduce costs. Ask your builder and a tax professional how credits apply to your plan.
Pro tip: ask your builder which rebates they plan to claim and whether savings are passed through as a price reduction or post-closing rebate.
Quick buyer checklist
- Ask the builder if the project used SAHF funds, land-bank lots, or SPLOST infrastructure that could affect pricing or resale covenants.
- Confirm which energy-efficient features qualify for Georgia Power or state rebates and how you will receive those savings.
- Compare lenders for one-close versus two-close construction loans, and ask a participating lender how Georgia Dream or USDA might pair with your build.
- Clarify property tax treatment, including any unusual structures that could impact taxes in future years.
For small builders and infill developers
- Meet with City Planning and Housing Services early to confirm AHOD eligibility, density options, and SAHF timing.
- Explore land-cost reduction options through the Land Bank Authority or surplus city parcels when available.
- Watch DCA NOFAs for CHIP and related programs that can fill your capital stack on affordable homes.
- Integrate high-efficiency specs early so you can capture Georgia Power rebates and state HER/HEAR incentives.
Property taxes and abatements
In Chatham County, multi-year property tax abatements are typically reserved for large commercial or job-creation projects structured with public development authorities. Residential builders should expect entitlement incentives, fee reductions, or density flexibility to be more common than long-term tax abatements. For background on how abatements are used locally, review this report. Property tax abatement context
Programs change, funding is competitive, and many incentives require pre-approval or completion before funds are applied. Always confirm current rules with the program administrator or a participating lender.
Ready to map the best financing path for your new build in Savannah or Pooler? Reach out to Homes by TLC - Taylor Lomprez for local guidance, trusted lender connections, and taylored support from contract to closing.
FAQs
Can I use Georgia Dream to buy a new build in Savannah?
- Yes, many buyers use Georgia Dream for newly built homes, subject to income and price limits and delivery through a participating lender. The home must be complete before Georgia Dream funds the permanent mortgage.
Are property tax abatements common for new single-family homes?
- No, multi-year abatements are uncommon for for-sale homes in Savannah; expect zoning flexibility or fee relief to be more likely than tax abatements.
What is an Affordable Housing Overlay District in Savannah?
- It is a zoning tool that allows added density or smaller lots when a project includes certified affordable units, which can lower per-home land costs.
Do USDA loans apply in Chatham County for new construction?
- Possibly, if the property is in a USDA-eligible rural area and you work with an approved lender that offers construction-to-permanent options.
How do I capture energy rebates on a new home?
- Plan early with your builder and use program-participating contractors so your equipment, inspections, and documentation meet Georgia Power and state rebate requirements.
