RFG follows inspector’s final budget for rehab draws
- Use inspector’s completed report, not original estimate
- No budget reallocations allowed
- Borrower covers extra costs
Draw requests require 100% completed work
- No partial work funded
- Full line item completion needed
- No pre-release for materials
Request draws via email
- Third-party inspection ordered
- Inspector contacts borrower in 1-2 days
- Report received in 2-5 days
- Funds sent within 1 day of report
- Inspection fee deducted from draw amount
- Borrowers pay Philadelphia area inspectors upfront. RFG won’t deduct this from draws. Inspectors may withhold reports if unpaid.
Draw releases via wire transfer only ($30 fee per draw):
- RFG provides blank draw wire form:
- Same entity: Any borrower can sign
- Different entity: All borrowers must confirm in writing
- RFG calls main guarantor to verify wire info
- Draws sent only to borrowers, not contractors
RFG adds 10% contingency to repair budgets:
- Held in escrow
Contingency released with final draw and may not be used for real location during work progress
Example: Original $50,000 budget + 10% contingency = $55,000
- Four $10,000 draws = $40,000
- Final draw of $10,000 plus $5,000 contingency funds released upon work completion.
- If contingency removed prior to loan closing on exception basis by RFG, draws released at 90%. 10% contingency line items released with remaining draw funds.
Example: Original $50,000 budget with no contingency.
- Four $10,000 draws = $40,000 – borrower receives $36,000 ($10,000 * 90% = $9,000 for each draw. $9,000 * 4 = $36,000. With $4,000 held in contingency.
- Final draw of $10,000 + $4,000 contingency funds released upon work completion.
FINAL DRAW – Lien waiver required:
- Contractor signs to prevent property liens
- Borrower signs if acting as contractor
- Protects borrower and RFG
- Required for final draw or payoff
Other policies:
- Current interest payments must be up-to-date
- Draw process timing: 2-5 days for third-party inspections, 1-2 days for local inspectors
- RFG relies on inspection reports, not borrower-provided photos
- Required documents:
- Roof warranty (new roofs only)
- Septic system completion certificate
- Sprinkler system completion certificate
