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Do draws on construction loans go directly to the Builder or Homeowner?

April 26, 2017builder Construction directly draws Homeowner Loans

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Do draws on construction loans go directly to the Builder or Homeowner?

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A. Typically draws are released directly to the Borrower. The Borrower is responsible for paying the Builder or Sub-Contractor directly. The one exception is when you are building a Modular Home. In this case, the draw for delivery of the modular home is typically paid directly to the modular company.