A draw is a payment that is made to suppliers and subcontractors from a construction loan's account. For example, you are building a new home, and your mortgage lender gives you a construction loan for $100,000. The lender also requires three different phases for which draws are provided. At the end of the rough framing, the lender gives the first draw. The rough framing includes the carpentry, roofing and siding. Your first draw is for one third of the total amount. When the siding and roof are installed, your lender gives you $33,000. This money is used to pay your carpenters, roofers, siding contractors and electricians. In addition, you use the money to purchase materials. The next draw occurs when the interior is finished. When the drywall is hung, finished and painted, you get the second draw. When all of the permits are fulfilled and the home is ready for possession, the lender gives you the last draw.