What is a rehab draw inspection?

How it differs from a ground-up inspection.

On new construction, progress follows a fixed sequence, from foundation to finishes, and the inspector checks how far the house has moved along it; see what a draw inspector looks for. A rehab has no such sequence. The budget is a scope of work for an existing house, its lines run in parallel, and each one replaces, repairs or adds something specific. The inspector's question is whether each listed item is done, not how far along the house is.

What the inspector documents.

• Scope-of-work lines. Each item in the rehab budget gets a percent complete and its own photos. Some items are all or nothing, such as a water heater installed; others are partial, such as flooring laid in four of six rooms.
• Existing conditions. When the lender orders a visit before work starts, its photos become the baseline. Without one, an old cabinet and a new one can be hard to tell apart in a photo.
• Demolition. Demolition usually comes first, and its evidence leaves with the debris, so gutted rooms are photographed before rebuilding begins.
• Hidden conditions and changes. Opening walls can expose rot, old wiring or failing pipes. The inspector notes work that differs from the approved scope, and the lender decides whether to approve a change order.
• Materials on site. Items delivered but not yet installed are recorded apart from installed work; see stored materials.

How loan programs frame it.

• FHA 203(k). On a Standard 203(k), HUD's consultant fact sheet describes a work write-up that prices each work item with labor and materials shown separately, and the consultant inspects the completed work when the borrower requests a draw. See who performs draw inspections on a 203(k) loan.
• Fannie Mae HomeStyle. The Servicing Guide, section D1-2-01, ties later escrow draws to an inspection confirming the work follows the renovation plans, including approved changes. See HomeStyle Renovation loan draws.
• Hard money and fix-and-flip. The lender's scope of work and loan agreement set the standard, and many lenders pay after the work is done; see how fix-and-flip lenders manage draws.

Why it matters for lenders.

On a renovation, finished work and existing conditions can look alike, and some evidence disappears as the job moves on. A report that ties each photo to a scope line, with a date and a location, lets a reviewer separate the work a draw paid for from what was already there if the draw is questioned later. It also shows scope changes before the holdback pays for work nobody approved.

How RAZE handles it.

A RAZE draw inspection reports percent complete for each draw sheet line, so a rehab budget's scope items are measured one at a time. Lenders set the required questions and photos for each order, photos link to the draw sheet line items they support, and every photo carries GPS coordinates and date and time stamps. Through RAZE it is a flat $125 per single-family inspection when RAZE sends the inspector, or $25 per request with your own inspector, per the RAZE Rate Card. RAZE is not a HUD 203(k) Consultant. RAZE documents the work; the lender decides what to release.