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Draw Procedures

With over 20 years of experience, Construction Financial Services, Inc. has the expertise and procedures to ensure your loan funds are provided to those providing the labor and materials on your house.

Independent 3rd party inspectors validate completion of work prior to disbursement.

Please note the loan will not fund up-front builder deposits. Any down payment / deposit noted in the Build Contract must be funded by the homeowner at the construction loan closing.

It is an independent agreement between the builder and borrower if the homeowner’s signature is required on each draw request. This is not a standard CFS policy. If CFS receives a request from the homeowner to approve draw requests prior to inspections and disbursement, CFS will honor that request and will provide the homeowner with a list of items and associated percentage of completion for each line item.

For payment to the Contractor / Builder we must receive:

  • Materials: Paid Receipts
  • Labor: Receipts and/or Release of Liens signed by subcontracts / vendors
  • Admin. Fees: Invoice from Builder

For payments direct to the Subcontractor and/or Vendor we must receive invoices to include description of work performed, company name and mailing address.

Construction Financial Services, Inc. will only disburse payments to the builder if the builder can provide proof of reimbursement. Thus paid receipts for materials and signed Lien Releases from laborers are required.

Draw Requests must include instructions for delivery [USPS mail, wire transfer, FedEx or pick-up].

After receiving the above, CFS will order an inspection to verify the completion of the items in the draw request. Checks will be issued within 48 business hours of receipt based on the inspection report. Upon request, materials can be paid directly to vendors for materials the same day as when the draw request is received.

Inspections are required for all LABOR draws. A $100.00 fee will be assessed and applied to the loan for each inspection. Also, a $30 fee is applied to the loan for each money wire transfer and/or overnight shipment. These fees are added to the construction loan payoff at the completion of construction unless a signed Change Order is received.


  • The builder must provide proof of General Liability Insurance. If a policy is not already in place, Personal Liability Insurance will be required as a supplement to the Builder's Risk Insurance.
  • A Certificate of Builder’s Risk Insurance with Construction Financial Services, Inc. as an additional insured is required before any labor draws will be disbursed [lot clearing, foundation preparation].
  • A Forms Survey is required before concrete/foundation materials or labor draws will be disbursed. The ordering and payment of the forms survey is the builder’s responsibility unless otherwise detailed within the builder’s contract with the homeowner.
  • In accordance with Texas Property Code, CFS will supply the homeowner with copies of all receipts, invoices and release of liens for each draw.
  • Inspections ordered by CFS are to verify completion of work only. Quality of construction and code compliance are the responsibilities of the builder and homeowner.
Construction Financial Services, Inc.
18568 Forty Six Parkway, Suite 3002, Spring Branch, TX  78070
Office:  (830) 438-4558
Copyright © 2019 NMLS # 866625
Lenders are required to provide the "Your Home Loan Toolkit", which has been provided by the Consumer Finance Protection Bureau created to comply with federal law pursuant to 12 U.S.C. 2604, 12 CFR 1024.6, and 12 CFR 1026.19(g). This is for all loan transactions effective 10/3/2015. http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf
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