A draw is a payment that is made from a lender to a borrower, typically as part of a construction or renovation project. Draws may be made at various stages of a project, and they may be based on the completion of certain tasks or milestones. Draws may be used to cover the cost of materials, labor, or other expenses, and they may be accompanied by a progress report or other documentation.

Real Estate Glossary | What is Draw??

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