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Construction draw schedule: how draws work
A construction loan pays your build budget in stages called draws. Here is a typical draw schedule for a new home and how each draw gets paid.
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What a construction draw schedule is
A draw schedule splits your build budget into stages, each tied to a piece of finished work. When a stage is done, it is inspected, and the money for that stage is released. You do not get the whole build budget at closing.
A typical draw schedule for a new home
| Typical draw | Work completed |
|---|---|
| 1. Foundation | Slab or foundation poured and inspected |
| 2. Framing | Walls, roof framing and sheathing up |
| 3. Dry-in | Roof, windows, doors and house wrap on |
| 4. Rough-ins | Plumbing, electrical and HVAC run |
| 5. Drywall and interior | Drywall, cabinets, trim |
| 6. Finish | Paint, flooring, fixtures, final inspection |
Your actual stages and amounts are set from your line-item budget when the loan closes.
How to get draws paid quickly
- Request the draw as soon as the stage is finished
- Include photos and your builder's invoice for the stage
- Keep the work in the same order as your budget so stages are easy to check
Questions builders ask
Straight answers about construction draw schedules.
What is a draw in construction?
A payment from the construction loan for a finished stage of the build.
How is the build budget paid out?
In draws. As each stage of the build is completed, the work is inspected and that stage's money is released.
Do I get the build budget at closing?
No. The lot is paid at closing; the build budget is paid in draws as each stage is completed.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
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