Loan Product — 03

Construction Loans

Ground-up and substantial rehabilitation financing with structured draw schedules and third-party inspections — built for Texas developers who deliver on schedule, every time.

11.5–15%
Rate Range
9–18 Mo
Term
$100K–$2M
Loan Size
Milestone
Draw Schedule
3rd Party
Inspections
Built for Texas Builders

Financing That Matches
Your Project's Lifecycle.

Construction loans require a different kind of lender — one that understands the project lifecycle, anticipates draw timing, and maintains discipline through every phase of the build. That's how Brazos operates.

Our structured draw process is tied to verified project milestones. Third-party inspections confirm work completion before draws are released — protecting both borrower and lender throughout the project.

Interest accrues only on the drawn balance, meaning lower carrying costs in the early phases and capital that deploys as you actually need it.

Eligible Projects: Ground-up SFR and small multifamily (1–9 units). Gut rehab and substantial renovation. Infill development. ADU construction. Texas and select surrounding markets.

Loan Parameters

ParameterDetail
Loan PurposeGround-Up / Substantial Rehab
Rate11.5% – 15% (interest on drawn balance)
Term9 – 18 months
Loan Size$100,000 – $2,000,000
Max LTCUp to 90% of total project cost
Max LTV (ARV)Up to 70% of completed value
Draw ScheduleMilestone-based
InspectionsThird-party at each draw
Property TypesSFR, 2–9 Unit Multifamily, ADU
RecourseFull recourse
The Draw Process

How Construction Draws Work

Our structured process keeps your project moving and your capital protected at every phase.

01

Budget Approval

At closing, your full project budget is approved and a draw schedule established based on milestones.

02

Milestone Completion

Your builder completes a defined phase — foundation, framing, mechanical, finish work, etc.

03

3rd-Party Inspection

An independent inspector verifies work is complete and meets quality standards before any draw is released.

04

Draw Released

Funds released promptly so your contractor can keep working without interruption.

Borrower Requirements

What We Require From Builders

Construction lending requires demonstrated experience. We look for builders who deliver on time and on budget.

  • Accredited investor or business entity
  • Demonstrated construction or development experience
  • Licensed and insured general contractor
  • Minimum credit score: 680
  • Shovel-ready project with permits in place (preferred)
  • Entity ownership (LLC, Corp) required
  • No active foreclosures or recent bankruptcies
Documentation Checklist

Documents to Prepare

Construction loans require more upfront documentation. Have these ready to move fast:

  • Completed loan application
  • Site plans and architectural drawings
  • Detailed construction budget (line-item)
  • Construction timeline and project schedule
  • GC contract, license, and insurance
  • Entity formation documents
  • Personal financial statement + tax returns
  • Completed project track record

Ready to Break Ground?

Submit your construction loan inquiry and a Brazos lending advisor will be in touch the same business day.

Apply for a Construction Loan →