How do progress draws work and what triggers each release?
Progress draws are released at pre-defined construction milestones, typically: (1) Lot purchase/excavation, (2) Foundation complete, (3) Framing/roof, (4) Lock-up (windows, doors, rough mechanicals), (5) Completion.
Each draw requires a third-party inspection report confirming the milestone. The lender holds back 10-15% until final completion and occupancy permit issuance. Draw schedules vary by lender — some offer 3-draw, others 5-draw programs.
Technical Research Verification
Our systems synchronized 2 data points and regulatory frameworks to verify this technical brief.
Related Questions
What's the difference between a co-signer and a guarantor?
A co-signer is on title and equally liable from day one; a guarantor stays off title and is only pursued after the primary borrower defaults.
How do lenders assess the creditworthiness of co-signers and guarantors?
Lenders thoroughly evaluate the financial stability of co-signers and guarantors to mitigate mortgage default risks.
What are the key debt service ratios and qualifying rates lenders use?
Debt service ratios (GDS/TDS) and qualifying rates are key to determining mortgage affordability.
Income Verification Standards: Renewal Hill Adherence
Self-employed borrowers have multiple paths to prove income:.