RFG follows inspector’s final budget for rehab draws
- Use inspector’s completed report, not original estimate
- No budget reallocations allowed
- Borrower covers additional costs above and beyond original scope of work
Draw requests require 100% completed work
- No partial work funded. All work must be complete and installed.
- Full line item completion needed.
- No pre-release for materials or special orders.
Request draws via email
- Third-party inspection ordered.
- Inspector contacts borrower in 1-2 days, often sooner.
- Report received in 2-4 days, often sooner.
- Funds sent within 1 day of report.
- Inspection fee deducted from draw amount or paid direct to inspector.
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 information.
- Draws sent only to borrowers, NEVER to contractors. Borrower is responsible for disbursing funds.
RFG adds 10% final holdback to repair budgets:
- Held in escrow
Final holdback released with final draw when project is complete and lien release is signed.
Example: Original $50,000 budget + 10% final holdback = $55,000
- Four $10,000 draws = $40,000
- Final draw of $10,000 plus $5,000 final holdback 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
- Property taxes and insurance must be current. If loan is past maturity, borrower must sign a loan modification agreement in addition to providing proof of current insurance and real estate taxes paid. NO EXCEPTIONS.
- RFG relies on inspection reports, not borrower-provided photos. Photos may be used to supplement inspection reports.
- Required documents:
- Roof warranty (new roofs only)
- Septic system completion certificate
- Sprinkler system completion certificate
