Glossary
What is a Construction Draw?
A construction draw is a scheduled disbursement of funds from a construction loan to the builder as the project progresses. Draws are typically released based on inspections verifying completion of specific milestones.
Definition
A construction draw is a partial disbursement of a construction loan total amount, released to the builder as specific milestones are completed and inspected. Construction loans do not hand the builder the full amount at closing — they release funds in stages so the lender can verify progress and protect the collateral.
Frequently Asked Questions
Related Glossary Terms
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