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 How does the draw schedule work?

The builder has 2 options for the OTC program. The builder will receive draws according to the budget establised by the builder and the AFR OTC team. An inspection will take place to ensure the work is complete prior to any disbursement. Or, your builder can agree to no intermim construction draws through out the process and will recieve all their moneies at the time time the home is complete. This can save time since there are no 3rd parties and the admin fee is lower for the builder. In any case, the builder is responsible for completing the project review packet and should upload it into the resource center. A description of materials, builders certification, constuction/permanent loan disclosure, OTC closing disbursement authorization and OTC Construction cost breakdown or OTC no draw closing disbursment authorization. Shortly after closing, the process will begin and the administrator will contact the builder with a welcome letter and draw process. Up to 5 draws can be allowed in the draw program. Draws are on demand and up to builder’s discretion. Your interim draws are use to pay for site improvements. The line item percentage of completion method is used to determine draw amounts for site improvements. builders will recieve a draw based upon work completed or percentage therof. However, funds will not be advanced for work not in place. A project inspection is required for draws for site improvements and that fee comes out of the AFR administration fee. AFR will fund up to 80% of the builder’s contract price prior to the final draw provided that the work is in place. The builder must advise the Administrator when the project is completed so that a final inspection can be requested.

Security America Mortgage, Inc

Security America Mortgage is one of the leading VA Home Loan Lenders in the nation; We are not a government agency. We pride ourselves on providing excellent customer service to ensure that each Veteran we serve ends up living happily ever after in the home of their dreams. This is a private website that is not affiliated with the U.S. government, U.S. Armed Forces, or Department of Veteran Affairs. U.S. government agencies have not reviewed this information. This site is not connected with any government agency.

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