Draw Mortgage


  • 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.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage