How does a construction loan draw schedule work?

Question

Silt Capital · Accepted Answer

A construction loan draw schedule releases the building budget in stages as work is completed, rather than handing over the full loan at closing. Before closing, you and your general contractor agree an itemized budget split into milestones — typically foundation, framing, rough-ins, drywall and finishes. When a milestone is done, you request the draw with photos and invoices; the work is checked against the approved budget, and the money is released for that stage. On Silt's ground-up program draws are submitted through the app and funded in 48 hours, which keeps subcontractors paid and the job moving. Because draws reimburse completed work, the builder must be able to start each stage before it is funded. A budget that matches the plans, permits and contractor agreement line for line is what makes each draw fast.

How does a construction loan draw schedule work?

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