Catalyst Draw Procedures

Amount of Draws:

We try to make the process as simple and streamlined as possible. Should you need further assistance after reviewing the steps below please feel free to give us a call. One of our representatives will be happy to assist you.

• The maximum amount you may draw is the hold-back amount on your loan. You may request the total hold back as long as the repairs on the house are 100% completed. (House must be ready for sale and completely cleaned)
• Draws are given after completion of any item on the Rehab Summary. No money is given in advance for work not completed.
• No money is given for change orders or for any work that was not on the original Rehab Summary or Contractor Bid.
• General Contractor fees will not be paid until the project is 100% complete.
• Repairs are given for the combination of Labor and Materials and cannot be given for materials only. We only pay on completed work.
• 10% of the repair escrow is held back and not released until 100% of job completion. Draw payouts also consider the entire property condition/ progress and not just the submitted scope of work.
• All draw requests must be for at least $5,000 or more.
• Permits – On any job that has to be or is permitted, each draw item that requires a city inspection approval must be approved by the city inspector before that item will be paid out.
• While Catalyst Funding does not require permits on all projects, any project this is permitted or receives a violation or “red tag” from the city, will need to pass inspection and/ or receive a “green tag” from the city before any draw requests will be processed.
• No draws will be processed for inspection if there are any outstanding interest payments due.
• Foundation – Catalyst Funding must approve Foundation Contractor prior to work being started in order to receive reimbursement. Invoice/Receipt and Foundation Warranty from Contractor will be required after work has been completed (with description of what was done along with a drawing of where the piers were added).
• Roof – Invoice/Receipt & Warranty/Certification, WPI8 Certificate on properties in the Coastal Counties from Contractor will be required after work has been completed.