Custom Built Homes Draw Schedule: How Florida Construction Lenders Release Money

A custom built homes draw schedule is the financial backbone of a ground-up project: the construction lender holds the loan proceeds and releases them in stages as completed work is verified on site, never in advance. On a Florida custom build that usually means six to twelve draws, each triggered by a milestone, confirmed by an independent inspection, and cleared by lien waivers from everyone who worked on that stage. Almost every draw delay traces back to paperwork rather than to construction, which is exactly why the mechanism is worth understanding before you close. Ofir Engineering is a licensed Florida general contractor (License #CGC 1540016) with 15+ years serving Jacksonville, Ponte Vedra, St. Johns, and Northeast Florida.

What a Custom Built Homes Draw Schedule Does

A construction loan funds in arrears. The builder completes a defined stage, the lender verifies it exists, and only then are funds released — covering the finished stage, never prepaying the next. The draw schedule is the agreed table mapping each stage to a percentage of the loan.

Three parties rely on it. The lender uses it to keep the outstanding balance behind the value actually in place, so the collateral is always worth more than what has been advanced. The builder uses it to pay subcontractors and buy materials without carrying the entire project on its own balance sheet. The owner uses it as a progress ledger: a draw request is a formal claim that a specific stage is finished, and that is the right moment to walk the site.

On custom construction the schedule tends to be more granular than on a production build. Longer lead times, specified rather than stock materials, and larger allowance lines justify more milestones and tighter documentation.

The Typical Draw Stages on a Florida Custom Build

An initial draw at closing generally covers land, plans, engineering, permits, and impact fees already paid. The foundation draw follows site work, footings, and the slab or stem wall, verified against the foundation inspection — and in Northeast Florida this stage frequently includes fill and compaction work driven by sandy soils and a high water table.

Framing is often the largest single draw, releasing when the structure, roof deck, and sheathing are complete. Dry-in follows when roof, windows, and exterior doors are installed and the building is weather-tight, which in this climate is a genuinely meaningful milestone rather than an administrative one. Rough mechanical, electrical, and plumbing releases after those systems are installed and pass rough inspection.

Insulation and drywall come next, then interior finishes and cabinetry, then exterior finish, driveway, and landscape. The final draw — often ten percent or more of the loan — is held until the certificate of occupancy is issued and the punch list is closed. That retention is deliberate leverage to ensure the house is genuinely finished rather than merely occupiable.

The Four Conditions Every Draw Has to Meet

The work is complete and in place. Material delivered to site but not installed generally does not count. Stored-material provisions exist on some loans but require specific documentation and insurance, and they are the exception.

An inspection confirms it. Most lenders send an independent inspector to photograph and verify percentage completion. Their report, not the builder’s invoice, is what the lender funds against.

Lien waivers are current. Florida’s construction lien law lets anyone who supplied labour or materials record a claim against the property, so lenders require conditional or unconditional waivers from the general contractor and every subcontractor and supplier tied to the draw. Missing waivers are the most common reason a completed stage does not fund on time. The statutory framework sits in Chapter 713 of the Florida Statutes, and it is worth understanding before construction rather than during a dispute.

The remaining budget still covers the remaining work. Lenders monitor whether the undrawn balance can finish the house. If a change order or allowance overrun puts the project underwater, the lender can require the owner to deposit the shortfall before releasing further funds.

What Actually Delays a Draw

Incomplete lien waiver packages lead by a wide margin. Inspection scheduling is second, because the report is ordered after the request and the site visit becomes the bottleneck in busy periods. Partial completion is third: a milestone that is ninety percent finished funds at ninety percent or not at all, depending on the loan.

Then come the structural causes. Unapproved change orders create a gap between what was built and what the budget documents describe, and lenders will not fund into that gap. Allowance overruns on specified finish packages do the same. Title update problems — a defective notice of commencement, or an intervening lien — hold funding regardless of how finished the work is.

None of these are construction failures, which is the point. Builders who keep draws moving assemble each request as a complete package on the day the milestone closes rather than chasing signatures afterwards.

How Owners Should Manage the Draw Process

Negotiate the schedule before closing, not during construction. Ask how many draws the loan allows, whether there is a fee per draw, how many business days funding takes after a complete request, whether stored materials are fundable, how change orders are approved, and how much is retained until the certificate of occupancy. Those answers shape the builder’s cash flow and therefore your schedule.

During construction, insist on seeing the inspection report and the lien waiver package for each draw. It is the cheapest project control available to an owner: a regular, third-party, documented statement of exactly what exists on your site. If you want the draw structure mapped against a realistic construction sequence before approaching a lender, see our custom home construction process, review the higher end of the market under luxury home builder, read our guide to the custom build schedule and its milestones, or contact Ofir Engineering to review scope and allowances.

Frequently Asked Questions

How many draws does a Florida custom home construction loan have?

Commonly six to twelve, depending on the lender and project size. Custom builds sit toward the higher end because longer lead times and larger allowance packages justify more granular milestones. The count and any per-draw fee are set in the loan documents.

What is the most common reason a construction draw is delayed?

Incomplete lien waivers. Florida’s construction lien law means lenders require waivers from the general contractor and every subcontractor and supplier tied to that stage, and one missing signature holds the entire release.

Will a lender fund materials delivered but not yet installed?

Usually not. Most construction loans fund work completed and in place. Some allow stored-material draws with specific documentation and insurance, so confirm it in writing before a large order is placed.

How much does a lender hold back until the end?

Retention of roughly ten percent until the certificate of occupancy is issued and the punch list is closed is typical. The exact figure and the release conditions are set in the loan documents and are worth negotiating before closing.