Explanation of Draw process

  1. When your loan closes, you should be ready to begin your rehabilitation work.
  2. Important things to remember;
    • There is no up front money from the bank
    • If your project requires building permits;
      • Get them prior to starting work
      • You need to have a copy to give to the Draw Inspector at first draw
  3. When it is time to draw some money
    • If you are using a contractor
      • You can draw money;
        1. For items listed on the work write up that are completed
        2. If you have partially completed an item, you can draw for the partially completed portion
      • The Draw inspection requires;
        1. A copy of the building permit (if one is required) at first draw.
        2. An invoice for the items to be drawn on the contractor's usual billing form.
        3. A signature and date from the;
          • Contractor, Conditional lien waiver
          • Owner, Contractor & Draw inspector on the "Draw Request" and change order if one is required
      • If you are doing the work yourself under the "Self Help Program"
        • You can draw money;
          1. For items listed on the work write up that are completed, or partially completed.
          2. You can not draw money for your labor
          • The draw inspection requires;
            1. A copy of the building permit (if one is required) at first draw.
            2. Invoices for the items to be drawn on Must be;
              • Original or Legible copies of paid invoices or paid receipts, clearly labeled what the item is for.
              • Recap sheet showing;
                • The line item from the work write up (Scope of work)
                • The amount to be drawn on each line item (corresponding to the matching receipts)
                • A signature & date on the HUD draw forms
    1. When the project is complete (Final Draw)
      • A legible copy of the signed off Job Card from the Building Department if permits were required
      • Final paperwork from owner or contractor as described above.
      • A final letter of completion from the owner
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