Construction Guide · Charleston Metro, SC

Construction Loan Draw Schedules: How Charleston-Area Lenders Structure Disbursements

For Charleston-area builders and buyers, how loan funds move from lender to job site matters as much as the rate. Construction loans disburse in stages tied to completed work, and the mechanics vary by lender and program.

Milestone-Based Disbursement, Not a Lump Sum

Most residential construction loans break funding into draws tied to milestones such as foundation, framing, rough mechanicals, drywall, and final completion; the exact count and split vary by lender and program. Interest during the build is typically charged only on funds actually disbursed, not the full committed amount.

What Happens Before Each Draw Releases

Before releasing most draws, lenders send an inspector to confirm the associated work is genuinely complete. Because South Carolina is a mechanic's lien state, many lenders also require a title update and lien waivers from the contractor and subcontractors first. This is standard risk-management practice rather than a statutory mandate, so confirm specifics with your lender or a South Carolina attorney.

A Few Local Wrinkles Worth Knowing

South Carolina's former DHEC split in mid-2024 into the SC Department of Environmental Services and the SC Department of Public Health, though some older forms still reference the old name. Waterfront permitting now falls under SC DES's Bureau of Coastal Management. Many area lenders also offer one-time-close construction-to-permanent loans that convert automatically after the final draw.

Wondering how a draw schedule would work for your specific Charleston-area build? Contact Chris Eller directly.