When a bridge loan includes repair funds, the lender holds that money in escrow and releases it in stages, called draws, as the work gets done. It protects the project and keeps the budget on track.
How a draw works
- Finish a phase of the work in your scope of work.
- Send the lender a draw request with photos and contractor invoices. Most lenders take these through their own online portal.
- An inspector confirms the work.
- Funds are released to you, usually within a few business days.
Tips for faster draws
- Take wide photos and close-ups of each completed item.
- Match invoice line items to your scope of work categories.
- Collect lien waivers from contractors as you pay them.
- Plan your cash for the first phase, since draws reimburse completed work.
Some lenders advance part of the rehab budget at closing to get the project started. We'll tell you which ones before you choose.