How to Create a Draw Schedule for Custom Home Construction

A draw schedule is your roadmap for getting paid during construction. It tells the lender when to release funds, tells the homeowner where their money is going, and keeps your cash flow healthy throughout the build.

What Is a Draw Schedule?

A draw schedule breaks your total contract amount into milestone-based payments. Instead of getting paid all at once (which no lender will do) or waiting until the end (which no builder can afford), you get paid in installments as work is completed.

Typical Draw Schedule for a Custom Home

- Draw 1: Foundation complete (15-20%)

- Draw 2: Framing complete, roof dried in (20-25%)

- Draw 3: Rough-ins complete (MEP) (15-20%)

- Draw 4: Drywall hung, interior trim started (15-20%)

- Draw 5: Cabinets, flooring, paint complete (15-20%)

- Draw 6: Final completion, punch list clear (5-10%)

Tips for Smooth Draw Requests

1. Align draws with inspection milestones — lenders often require inspector sign-off

2. Include photos with every draw request — lenders love visual proof

3. Submit draws promptly — don't let completed work sit un-billed

4. Get homeowner approval BEFORE submitting to the lender

5. Keep a running total visible to everyone — no surprises at the end

Digital Draw Management

The days of faxing draw requests are over. Modern builders use software to create draw requests, get homeowner e-signatures, and generate lender-ready PDFs — all from their phone. Foundation handles this entire workflow: create the draw, homeowner approves with one tap, you get a PDF to send to the lender. Done.