Starting construction on a property takes planning and budgeting skills. Often expenses are accumulated prior to construction. A draw mortgage is typically used for single-family homes.
A Typical draw mortgage can have funds provided at intervals to the builder by their lender as the property gets built. The period can fluctuate, but the funds are often provided in the following draws:
- a) Lockup stage
- b) Drywall stage
- c) Finishing Stage
- D) Finally, at the completion
At Freedom Capital, we review your budget and use our experience in the field, to ensure that you have enough funds to finish your project.
Our goal is to have you finish the project with enough funds and on time.
By obtaining the right kind of draw mortgage, items such as:
- Costs for trades
- Materials required for construction
- Costs for consulting fees and other reports
- Fees to be paid into the city for rezoning
Can be covered and budgeted for at the beginning of the project.
Freedom Capital has access to lenders that have a ‘no limit’ on draw advances. We’ve structured deals where the borrower can have access to a draw every month.
At the time of each draw, you are required to submit your Progress Inspection Report. It is a report that shows the amount of progress that has been made. When the lender is satisfied with the report, they will provide the funds for the next draw.
If you wish to know more about draw financing, contact one of our mortgage specialists to help you with your construction financing needs.