Make a Mortgage Payment

The Construction Draw Schedule

October 12, 2021

If you’re looking to build your dream home, it’s important to understand the relationships involved in the construction process so you know what to expect before you begin. One of the more crucial relationships in this process is the relationship between your lender and your builder. The lender establishes a timeline for completion with the builder and establishes what is called a construction draw schedule. Let’s get into the details of what exactly a construction draw schedule is and its purpose.


What is a construction draw schedule?

Lenders won’t release all funds to the builder at the beginning of the project, but will follow the construction draw schedule, releasing the funds in phases. The construction draw schedule is outlined by the lender and identifies certain points during the construction of the home for when additional funds will be released to the builder. With each phase there will be an inspection of the property to prove it has been sufficiently completed to that point, and then the lender will release the funds needed to complete the next phase.


Typical Draw Schedule

It’s important to remember that the draw schedule for your property could vary from what is outlined below, however this is a breakdown of the typical draw schedule. Each draw point collects 20% of the loan amount to complete that phase:

  1. Clear lot, sub-plumbing, and pour concrete.
  2. Framing, roof, and windows installed.
  3. Complete rough-ins, exterior siding, plumbing, electrical, and insulation.
  4. Cabinets, counters, flooring, and gutters.
  5. Trim, painting, appliances, inspection, and occupancy.


Documents Required for a Draw Request

Once a builder has completed a phase of the home construction process, they’ll want to request the next draw to continue on-schedule. However, before the lender can release additional funds, they will need to confirm the previous phase has been completed in full.

  • Receipts/invoices for work performed or supplies purchased
  • Schedule of values: lists line by line the tasks for completion along with their estimated cost
  • Change orders: detail any changes made to the original plans
  • Lien wavers: acts as proof of payment to contractors, sub-contractors, and suppliers
  • Overview of the status of the project


The construction draw schedule is a crucial aspect of the home building process. If you’re looking to build your dream home, it’s important to be familiar with it. When you’re ready to begin the construction financing process, get started here!