Loan Structure & Funding Mechanics

Construction loans provide phased funding based on your project timeline. Instead of one check at closing, you receive "draws"—staged disbursements tied to construction milestones and inspections.

• • Phased Disbursements: Funds are released in stages as your project progresses—typically at foundation, framing, roofing, mechanical, and final completion.
• • Draw Schedule: We work with you upfront to establish a realistic draw schedule aligned with your construction timeline.
• • Interest-Only During Construction: While your project is under construction, you typically pay interest only (not principal). This keeps monthly payments manageable during the building phase.
• • Loan Amount: The total loan amount is based on the completed project value, not just the land or current improvements.

Approval Process

We understand that builders and developers need fast, reliable decisions. Our approval process is streamlined but thorough.

• • Plans & Specs Review: We review your architectural plans, building specifications, and cost estimates to understand the scope and timeline.
• • Timeline Assessment: We evaluate your construction timeline and work with you to create a realistic draw schedule.
• • Lender Oversight: Throughout construction, we conduct periodic inspections to verify that work is progressing as planned before releasing each draw.
• • Fast Decisions: We move quickly on qualified projects. Many builders and developers receive approval in days, not weeks.

How Draws Are Triggered

Each draw is tied to specific milestones and inspections. This protects both you and the lender by ensuring funds are released as work is completed.

• • Milestone-Based Draws: Draws are released when specific construction phases are complete (foundation set, framing up, roof on, etc.).
• • Inspection Requirements: Before releasing each draw, we (or a third-party inspector) verify that work meets the specifications and building codes.
• • Request Process: You submit a draw request with supporting documentation (progress photos, inspector reports, contractor invoices). We review and release funds within 3-5 business days.
• • Retention: We may hold back 10% of the total loan amount until final completion and approval. This ensures the project is finished to specification.

Conversion to Permanent Financing

Once your project is complete, your construction loan converts to permanent financing. You have options depending on your goals.

• • Construction-to-Permanent Loan: This is a single loan that automatically converts from construction to a long-term mortgage once the project is complete. No need to refinance or apply separately—simpler and more cost-effective.
• • Interest Rate Lock: With a construction-to-permanent loan, your permanent interest rate is typically locked in at closing. You know your long-term payment upfront.
• • Flexible Terms: Choose from 15, 20, or 30-year amortization schedules based on your financial goals.
• • Refinancing Option: If you prefer to shop for rates after completion, you can refinance with another lender. Some builders do this to secure the best long-term rate.

Typical Project Timeline

Here's what you can expect from loan approval through project completion.

Why Builders Choose Brentwood Pacific

We understand construction timelines and the unique challenges builders face. Here's what sets us apart:

• • Construction Expertise: We've financed dozens of construction projects and understand the real-world complexities of building timelines.
• • Flexible Draw Schedules: We work with your timeline, not against it. If your project runs ahead or behind schedule, we adjust.
• • Fast Decisions: We move quickly on qualified projects. Many builders receive approval and close within 2-3 weeks.
• • Local Relationships: We have long-standing relationships with Orange County builders, contractors, and inspectors. We understand the local market.
• • Responsive Support: When you need a draw processed or have a question about timeline, you reach a real person—not a call center. We're here to support your project success.