DRAW INSPECTIONS

After closing on your loan and starting the construction of your property, the next step in the renovation process is the releasing of funds. The consultant will meet you at the subject property and inspect and review all items included in your renovation plan. The amount released will be directly related to work completed as of the date of inspection as specified on the plan. The signed draw form will be emailed to the lending institution within 24 hours after the necessary paperwork has been forwarded to the inspector.The lending institution will then process your draw request and produce the check. Contact your lender to find out what their turn around time is for processing payment.

HOW DO I PREPARE FOR THE DRAW INSPECTION?

  1. Borrower under FHA guidelines must begin work within 30 days of closing. When ready to draw funds (typically 20% - 40%+/-) they should notify AM Renovation Consulting by email (203kdraw@amconsults.com) or phone (781-397-7637) requesting a draw.
  2. Prior to the inspection the borrower and/ or General Contractor needs to fill out column #3 on your draw form (which was provided at closing and was part of the consultant’s renovation report), this should accurately reflect work completed as outlined in your plan as of the date of inspection.
  3. The borrower and General Contractor should be present at the inspection with the Draw Form and completed column 3 for review along with all applicable permits/updated permits. The 203K consultant will then inspect the completed work as outlined in your plan and either concur or make adjustments to the amounts you have entered.
  4. All documents to be signed by borrower, General Contractor and inspector with all required permits to be submitted.
  5. If inspector does not have all pertinent information at the draw or all parties (General Contractor and borrower) are not in attendance, the paperwork will be left at the site to be completed and or signed. Failure to complete in a timely fashion will result in delay of funds.
  6. After the inspection is completed the 203K consultant totals the funds to be released and subtracts 10% for holdbacks.
  7. The 10% holdbacks on both the draw release and contingency totals are required by HUD to ensure no liens have been placed on the subject property. The holdback monies will be released at the completion of the project. Please your contact lender for their specific time frame.
  8. If all paperwork is complete at the time of the inspection all information is then emailed (within 24 hours) to the lender, borrower and General Contractor. You should expect a check from your lender in 3-7 work days. Please confirm this time frame with your lender. This is also an opportunity to introduce yourself to the Draw Service Center. We highly recommend making this contact.
  9. Inquires on Draw payment / check status should always be directed to your lender first.

THE DRAW PROCESS
  • Email request to: 203kdraw@amconsults.com
    NOTE: *Important* - Please email at least one week in advance for your inspection request date.
  • A.M. Renovation Consulting will be in contact within 48 hours to provide an inspection date.
Read Our Draw Inspection FAQ's

View A Sample Draw Inspection Form