Your builder gets paid in phases — here’s what that means for you.

Construction loans don’t work like traditional mortgages. Instead of handing over one big check at closing, lenders fund your project in stages — based on progress.

Understanding your construction loan draw schedule is essential for a successful project.

The construction loan draw schedule can vary by lender, so always clarify the details.

Having a clear construction loan draw schedule helps avoid delays.

👉 This is called the construction loan draw schedule, and it’s one of the most important parts of the entire process.

Knowing your construction loan draw schedule ensures you’re prepared for each phase.

Maintaining an organized construction loan draw schedule promotes transparency.

Your construction loan draw schedule will outline all payment phases.

Adhering to your construction loan draw schedule helps keep the project on track.

If you’re building a home, here’s what to expect — and how to make sure things stay on track.

Every draw in your construction loan draw schedule is essential for cash flow management.

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✅ What Is a Draw Schedule?

A draw schedule outlines how and when your builder will be paid during construction.

Each draw is tied to a specific milestone (like pouring the foundation or finishing the roof). After each milestone is completed and verified, the lender releases funds to keep the project moving.

📘 This ensures your builder gets paid as work is completed — and helps protect you and your lender from paying for unfinished or poor-quality work.

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🔁 Typical Draw Schedule Breakdown

While exact schedules vary, here’s a common structure:

Understanding the construction loan draw schedule allows for better budgeting.

1. Initial Draw – Permits, surveys, land purchase (if included)
2. Foundation Draw – Excavation, footings, slab or basement
3. Framing Draw – Walls, roof, windows, doors
4. Mechanical Draw – Electrical, plumbing, HVAC
5. Drywall Draw – Insulation, drywall, interior finishes begin
6. Finishes Draw – Cabinets, flooring, paint, appliances
7. Final Draw – Landscaping, cleaning, final inspection

🔍 Each draw requires:

• Builder’s draw request
• Inspection to confirm progress
• Approval from lender
• Funds released to builder/vendor

✅ PRMI handles all draw approvals with speed and transparency.

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💡 Why the Draw Schedule Matters

It ensures:

• Your builder stays accountable
• You only pay for what’s completed
• Construction stays aligned with your loan budget
• Funds are released safely and legally

It also helps avoid:

• Front-loading payments (a major red flag)
• Miscommunication about timelines or expectations
• Budget overruns or quality issues

📘 This process protects your investment and gives you leverage if timelines slip.

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🧠 Tips for a Smooth Draw Process

• Choose a licensed builder familiar with lender requirements
• Be proactive — ask for a copy of the proposed draw schedule before closing
• Understand your role (you approve or acknowledge each draw)
• Communicate regularly with your builder and loan officer
• Expect inspections at each phase — this is a good thing

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🏢 Why PRMI?

We help you:

• Understand the full timeline and payment structure
• Coordinate fast, smooth draw inspections
• Communicate clearly with your builder and escrow
• Keep your project funded without unnecessary delays

Your draw schedule shouldn’t be a mystery — we make sure it’s a roadmap to your dream home.

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By following the construction loan draw schedule, you can avoid unnecessary stress.

👇 Want to Understand the Construction Draw Process for Your Project?

Your construction loan draw schedule should provide clarity on payment timing.

We’ll walk you through a sample draw schedule, expected timelines, and how to avoid common issues.

Check your construction loan draw schedule regularly for updates.