Short answer:
A loan draw schedule breaks up your rehab loan into installments that are released as work is completed. It keeps your project funded and your lender protected—while helping you stay on budget and on schedule.
If you're using a hard money loan to finance a fix-and-flip or major renovation, understanding how draw schedules work is essential. Let's walk through the process, step-by-step.
When you get a hard money loan for a rehab project, you typically don’t receive all the funds upfront—especially for the renovation portion.
Instead, the loan is structured in two parts:
This structure protects both the lender and the borrower. The lender ensures that work is actually getting done before releasing money, and the borrower avoids blowing through the entire rehab budget too early.
A draw schedule is a pre-agreed plan that outlines how and when rehab funds will be released.
Think of it like a renovation roadmap tied to funding. As each phase of the project is completed, you request a “draw” to reimburse costs or pay contractors for the next stage.
For example, a simple draw schedule might look like this:
Each draw requires proof of progress—often via photos, contractor invoices, or a site inspection.
Here’s a basic step-by-step breakdown of how it works with a lender like Silverton Capital:
Before closing, you'll provide a detailed Scope of Work that outlines:
Silverton uses this to create your draw schedule.
You’ll close on the property, and only the acquisition portion of the loan is funded. The rehab funds are held in escrow and released in stages.
Once you begin renovation, you fund the initial phase out of pocket. This shows the lender you’re committed and capable of starting the job.
As soon as you complete a phase of work:
Once the draw is approved, funds are wired to you or directly to your contractor—usually within a few days.
You move on to the next phase of work, and the process repeats until the project is complete.
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Draw schedules are more than just funding logistics—they’re an essential project management tool.
For Investors:
For Lenders:
Silverton Capital works closely with borrowers in Dallas, Tarrant, and Collin counties to ensure draw schedules are smooth, timely, and realistic for the size of the project.
Remember, the draw schedule is flexible within reason—but changes to the scope or delays should be shared early.
At Silverton Capital, we don’t just fund deals—we help make them happen. Our team is experienced with renovation-heavy projects and offers simple, transparent draw schedules to keep your project moving.
If you're investing in Dallas, Tarrant, or Collin counties and need funding for your next rehab project, let’s talk.
Apply now to see what you qualify for.
A good draw schedule keeps your flip funded, your team moving, and your lender confident. It’s one of the most important tools in the rehab investor’s toolkit—and when done right, it makes the entire process smoother and more profitable.
Need a lender who understands how rehabs really work?
Apply with Silverton Capital for fast, flexible rehab loans in Dallas, Tarrant, and Collin counties.
This article is for informational purposes only and is not intended to serve as legal, financial, or investment advice. Please consult with a licensed professional before making financial decisions.