One of the most important parts of construction lending is the draw schedule. Draws are staged disbursements released as your home build reaches defined milestones.
When borrowers understand how draws work, project communication improves and delays are easier to manage.
Typical Draw Process
- Builder completes an approved phase of work.
- An inspection verifies progress.
- The next draw is released based on completed milestones.
- The process repeats through final completion.
Common Mistakes to Avoid
- Underestimating timeline changes between phases.
- Inadequate documentation for change orders.
- Poor communication between builder and lender.
- Not planning cash flow buffers for unexpected adjustments.
For Decatur and Metro Atlanta projects, a clear draw strategy can protect momentum and reduce stress from foundation to finish.
Program terms vary by borrower profile, project type, and property eligibility.