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What is construction draw?

A funding advance on a construction loan released as milestones are completed and verified by the lender or a third-party inspector. Interest usually accrues only on amounts drawn.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.