HUD-9746-A Draw request Section (k)

U.S. Department of Housing
and Urban Development
Office of Housing

Draw Request
Section 203(k)

OMB Approval No. 2502-0527 (exp. 1/31/2009)

Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information,
and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information collection involves an expanded information requirement for lenders that originate and service Section 203(k) mortgages. The purpose of the
information is to help mitigate program abuses. The expanded information focuses on the loan origination process and requires increased documentation and
strengthened internal control procedures. Periodic reporting of the information is not required. The information also includes information that was voluntarily
accepted by the 203(k) lending community. The information provides a more comprehensive basis for evaluating lender underwriting practices and thereby improves
risk management of the 203(k) loan portfolio. Responses are required to obtain benefits under Section 203(k) of the National Housing Act (12 U.S.C. 1703).
No assurance of confidentiality is provided.
Borrower's Name & Property Address

Lender's Name & Address

FHA Case Number

This Draw Number

Date

I certify that I have carefully inspected this property for compliance with the general acceptability requirements (including health and safety) in Handbook 4905.1. I have
reviewed the attached architectural exhibits and the estimated rehabilitation costs listed in column 1, below; they are acceptable for the rehabilitation of this property.
I have no personal interest, present or prospective, in the property, applicant, or proceeds of the mortgage. To the best of my knowledge, I have reported all items requiring
correction and that the rehabilitation proposal now meets all HUD requirements for 203(k) Rehabilitation Mortgage Insurance.
HUD-Accepted Consultant / Plan Reviewer's Signature & Date

Suggested Contingency Reserve Amount

X

%
Construction Item

Total Escrow
Col. 1

Total Cost of Rehabilitation
Previous Draw Totals
Request for This Draw
Col. 2
%
Col. 3

%

Inspector/Lender
Adjusted Amounts
Col. 4

%

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

Masonry
Siding
Gutters/Downspouts
Roof
Shutters
Exteriors
Walks
Driveways
Painting (Ext.)
Caulking
Fencing
Grading
Windows
Weatherstrip
Doors (Ext.)
Doors (Int.)
Partition Wall
Plaster/Drywall
Decorating

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.

Wood Trim
Stairs
Closets
Wood Floors
Finished Floors
Ceramic Tile
Bath Accesories
Plumbing
Electrical
Heating
Insulation
Cabinetry
Appliances
Basements
Cleanup
Miscellaneous
Totals

20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.

page 1 of 3

ref. Handbook 4240.4

form HUD-9746-A (8/95)

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)
This draw request is submitted for payment. All completed work has been done in a workmanlike manner. I hereby certify to the actual costs of rehabilitation as
shown above in column 3. I understand that I cannot obtain additional monies from the rehabilitation escrow account without the approval of the lender. I also
understand that a 10% holdback will not be released until all work is complete and it is determined that no mechanic's and materialmen's liens have been placed
on the property. After the final inspection, the monies in the escrow account will be distributed as required by the 203(k) program procedures.
Borrower's Signature

Owner-Occupant

Investor/Builder

X

Date

This draw request is submitted for payment. All completed work has been done in a workmanlike manner. I understand that a 10% holdback will not be released until
all work is completed and it is determined that no mechanic's and materialmen's liens have been placed on the property.
General Contractor's Signature (if any) X

Date

I certify that I have carefully inspected this property on this date.The draw amounts are acceptable except as modified in column 4. I further certify that I have not accepted
any work that is not yet completed in a workmanlike manner and I recommend that the rehabilitation escrow funds be released for the completed work.
Inspector's Signature

X

I.D. Number

Approved for Release

Total from Above
Less 10% Holdback

This Draw
$

Totals to Date

The Lender is hereby authorized to release the following funds from the escrow
account

$

$

$

Net Amount Due Borrower $

$

Date

Payable to the Borrower

Payable to the Fee Inspector

$

$
$

Payable to
Signature & Date

Lender-Authorized Agent

X

DE Underwriter
Lender Holding Rehabilitation Escrow Account (name, address, & phone number)

Originating Lender still Retains Funds
Rehab Funds Transferred to:

Rehabilitation Inspection Report

FHA Case Number

I. Inspection of On-Site Repairs and/or Improvements Reveals
Unable to make inspection. (explain below)
1.
2.

Correction essential as explained below:
a.

Will examine at next inspection.

b.

Do not conceal until reinspected.

II. Explanation of statements checked above
Draw
Contingency
Inspection
Reserve Inspection
No.

3.

No noncompliance observed.

4.

Acceptable variations as described below.

5.

On-site improvements acceptably completed.

Inspection Number

Final
Inspection

Change
Order

Other (explain)

No.

Certification: I certify that I have carefully inspected this property on this date. I have no personal interest, present or prospective, in the property, applicant,
or proceeds of the mortgage. To the best of my knowledge I have reported all noncompliance, work requiring correction, and unacceptable work. I also certify
that this Draw Request is for completed work and I have not accepted any work that is not properly installed in a workmanlike manner.
Signature & Date

X

Consultant / Inspector
Fee Inspector
DE Staff Inspector
page 2 of 3

Inspection Fee

ref. Handbook 4240.4

ID Number

form HUD-9746-A (8/95)

Instructions: Prior To Appraisal
1. The Consultant or Plan Reviewer meets with the borrower (and
contractor, if there is one) at the site to determine if cost estimates
are acceptable. The cost of labor and materials (including overhead and profit, where necessary) must be shown. Borrowers
doing their own work must include labor and material, in case they
are unable to complete the work due to some unforseen circumstance, and they must later subcontract out the work. Upon
completion of the review, and if the cost estimates are acceptable,
the Consultant or Plan Reviewer must sign the certification and
return all exhibits to the lender.
2. Lender sends exhibits and a copy of the Draw Request form to
the appraiser. The appraisal cannot be performed unless the
Consultant or Plan Reviewer has signed the certification on the
Draw Request form. Appraisers are instructed not to add additional work items to the list of construction items without the
Consultant or Plan Reviewer assuring that the cost estimate for
additional items are acceptable and included on the Draw Request
form.
Instructions: During Construction:
1. If any construction work items were completed prior to closing
the loan, an inspection of the work can occur one day after closing.
2. Borrower/contractor completes column 2 “Previous Draw Totals” with percent of completion on any of the construction items.
On the first draw inspection, this column will be left blank. On
subsequent draws, show the accepted amounts shown in columns
3 and 4 (from the previous draw).
3. Borrower/contractor completes column 3 “Request for This
Draw” with the actual cost of rehabilitation, which includes
materials, labor, overhead and profit. Materials cannot be paid for
until they have been acceptably installed. For the investor/builder
using the Escrow Commitment Procedure, the cost savings will be
added to the escrow amount that is held by the lender for release
when an acceptable owner-occupant assumes the loan.
The inspector will complete column 4 for each line item that is
necessary to be adjusted. If no adjustments are required, column
4 will remain blank. In no case can the inspector approve a release
of funds in excess of the amount requested by the borrower in
column 3.

After the final draw inspection, cost savings can be adjusted to
pay for cost overruns in other construction items or additional
improvements to the property that are approved by the Direct
Endorsement (DE) Lender. An additional administration cost can
be allowed under certain circumstances. Any remaining cost
savings must be applied to the mortgage principal and will create
greater equity in the property.
Example 1: If column 1 for Drywall is estimated for completion
at $1,500, and the work is 50% complete, but a signed contract is
for $1,200, then the Request for This Draw in column 3 cannot
exceed $600.
Example 2: If column 1 for Drywall is estimated for completion
at $1,500, and the work is 50% complete, but a signed contract is
for $1,800, then the Request for This Draw in column 3 cannot
exceed $750. At the end of rehabilitation, cost overruns can be
adjusted for, provided there were savings in other construction
items that were approved prior to closing.
4. The borrower and contractor must sign the certification on the
Draw Request form. If a dispute exists, the lender must try to
mediate the dispute to assure there are no mechanics or
materialmens liens placed on the property. The lender may make
checks out in both the borrower and contractors name to ensure
proper distribution of escrowed funds and to assure no mechanics
or materialmens liens. The borrower or contractor may initiate
legal proceedings if an equitable agreement cannot be reached.
5. Under no circumstances can any construction item be paid for
without the work being acceptably installed (e.g., materials on site
cannot be included in the draw request). Upon completion, the
inspector signs the Draw Request form, and the Rehabilitation
Inspection Report and returns this form to the DE Lender, if
applicable. The cost of the inspection should also be completed.
6. The DE who controls the Rehabilitation Escrow Account must
provide an accounting of the escrow account to the borrower and
HUD, showing the status of all monies in the escrow account. After
the acceptable receipt of all necessary documentation, the escrow
release (less 10% holdback) should occur within 48 hours. The
accounting system must comply with Handbook 4240.4.

The DE Underwriter or the lender’s authorized agent may
reduce the amount of funds accepted (or revised) by the inspector
by completing (or correcting) the amount shown in column 4.
Where a correction has been made by the inspector or the lender,
the revised total amount will be shown in line 36, column 4. When
the DE Underwriter or the lender’s authorized agent is satisfied
with the Draw Request, the bottom of the form approving the
release of funds will be completed.

page 3 of 3

ref. Handbook 4240.4

form HUD-9746-A (8/95)