Construction Loan Draw Schedule in Florida: How the Money Reaches the Builder

Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.

A construction loan draw schedule Florida lenders set releases the loan in stages as an inspector confirms each phase of work is complete.

Knowing the stages, the inspection lag and the lien release rules keeps the build funded and the builder paid. Our construction loan page covers the loan itself.

How draws work

The builder requests a draw for completed work.

The lender sends an inspector to confirm.

Funds are released, often directly to the builder.

Interest accrues only on the amount drawn.

See our guide to construction-to-permanent loans in Florida.

Typical stages

Foundation and slab.

Framing and roof dry-in.

Rough mechanical, electrical and plumbing.

Drywall and interior finishes.

Final completion and certificate of occupancy.

Percentage by stage

Each stage carries a percentage of the budget on the schedule.

The percentages are set at closing from the builder's cost breakdown.

A draw cannot exceed the percentage complete.

Front-loaded schedules are a red flag to lenders.

The Fannie Mae construction guidance describes the standard.

Inspections

A lender-hired inspector, not the county inspector.

Days to a week between request and release.

See our guide to closing date delays in Florida for how delays cascade.

Photos and a report to the lender.

Some lenders accept the builder's progress photos for small draws.

Lien releases

Florida's construction lien law lets unpaid subcontractors lien your property.

The Florida Statutes chapter 713 sets the rules.

Each draw should come with lien waivers from the builder and subs for the prior draw.

The lender requires them.

Your title company or attorney reviews them.

The notice of commencement

Recorded before work starts; it starts the lien clock.

The lender's mortgage must record before it to keep priority.

A notice recorded early can cloud the lender's position.

Coordinate the recording order at closing.

Title companies handle this routinely.

Retainage

A percentage of each draw held back until completion.

Protects against incomplete work.

Released at the certificate of occupancy.

Builders price it in.

Ask what the schedule holds back.

Interest reserve

Some loans include a reserve to pay interest during construction.

Draws fund the interest payments.

It adds to the loan amount.

Without one, you pay interest monthly from cash.

Budget either way.

Change orders

Changes to the plan alter the budget and the schedule.

Lender approval is required for anything material.

Upgrades beyond the budget are paid from cash.

See our guide to builder deposits in Florida.

Track them in writing.

Florida timing hazards

Rainy season slows site work.

Hurricane season can halt it and delay inspections.

See our guide to hurricane insurance claims and your mortgage in Florida for builder's risk claims.

Permit inspections by the county add their own delays.

Build slack into the loan term.

Builder cash flow

Builders front costs between draws.

A slow draw process strains small builders.

See our guide to buying land and building in Florida.

Ask the lender for its average draw turnaround.

Choose a builder who has worked with that lender.

Paying the builder directly

Most lenders fund draws to the builder, sometimes jointly to you and the builder.

You sign off on each draw.

Do not sign for work you have not seen.

Visit the site before each draw.

Photos are not a substitute.

Disputes

A dispute with the builder stops draws.

The lender will not fund contested work.

Mediation clauses in the contract help.

A lien from a sub during a dispute complicates it.

Resolve quickly; interest and the loan term keep running.

Conversion to permanent

At the certificate of occupancy, the final draw funds and the loan converts.

See our guide to new construction walkthroughs in Florida.

A final inspection and appraisal update.

The permanent payment begins.

Retainage is released.

Insurance at each stage

Builder's risk during construction.

See our guide to Florida homeowners insurance cost.

A homeowners policy bound before conversion.

Wind mitigation inspection at completion for the credits.

See our guide to wind mitigation inspections in Florida.

A sample schedule

Ten percent at permit and site work.

Twenty percent at foundation and slab.

Twenty-five percent at framing and dry-in.

Twenty-five percent at rough-ins and drywall.

Twenty percent at completion, less retainage.

Your role at each draw

Visit the site and compare the work to the stage.

Collect the lien waivers for the prior draw.

Sign the draw request only when both match.

Keep a folder of every request, inspection report and waiver.

The folder is your protection if the builder fails.

When a draw is short

The inspector may approve less than the builder requested if a stage is incomplete.

The builder covers the gap until the next inspection.

A pattern of short draws signals a schedule that is ahead of the work.

Ask for a revised schedule rather than pressing the lender.

The lender's caution is protecting your money.

Where to start

Get the builder's cost breakdown and the lender's draw schedule side by side.

Confirm the lien waiver process and the inspection turnaround.

Then start a conversation and we will set the schedule to the build.