A draw schedule provides for periodic payments to the builder based on work accomplished. The draw schedule is negotiated between you and the builder, based upon general industry standards.
Your lender will require that the draw schedule be based upon the builder's actual costs and actual work performed. The ideal draw schedule matches each periodic payment to the builder with the value of work and materials added by the builder.
For example, the first draw of 20% of the construction loan amount may be made when the foundation is completed and the main sub-floor is in place. The idea is to make sure the builder doesn't get more cash from you than the actual work completed. An independent inspector usually certifies to the lender that the builder's work is completed at each draw.
It's easy to get started...
Just fill out the form below and click the SUBMIT button at the bottom of the page to automatically get priorty information on various CONSTRUCTION FINANCING OPTIONS