- A payment, made periodically, to a construction contractor or subcontractor as work progresses. A draw is part of a construction mortgage.
See Progress Advance Mortgage (PAM).
progress draw construction mortgage, progress draw mortgage, advanced as needed, draw loan
Related Terms and Acronyms
- Commercial Loan — Definition,
- A loan taken out by a business.
- Construction Loan — Definition,
- A short-term interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
- Contractor — Definition,
- Someone that agrees to furnish materials or perform services at a specified price.
- One who constructs or oversees construction of a house or a large renovation.
- Custom Builder — Definition,
- A contractor that constructs or remodels houses based on plans submitted by the client.
- General Contractor — Definition,
- The person or company that performs work on a construction project, hires subcontractors and suppliers, or both.
- Interim Financing — Definition,
- The availability of funds on a daily basis to assist a developer with financing for a construction project between advances made by the lender of the construction loan.
- Land Draw — Definition,
- A construction loan backed by the value of the land.
- Subcontractor — Definition,
- A person or company that does specialty work for a general contractor.