Looking for Bank Account that I control for a builder to pull draws against phases of home construction?

We are considering self-financing our new home build. Much like one might have a 'construction loan' in which the customer approves draws when the builder completes specific phases of house construction - we want to have a bank account that we fund, and (most importantly) approve draws for the builder to pull out...

 

We have checking accounts at USAA FSB and we called to see about setting up such an account at USAA FSB for our builder to draw from. The representative said USAA didn't offer such an account - the best we could do is have a 'joint account' but that the joint holder (the builder) would not be restricted or have any 'checks and balances' as far as withdrawing whatever they wanted whenever they wanted. E.g. we wouldn't be able to control the withdrawals by the joint holder (builder).

 

...Just wanted to confirm here that this is indeed a correct understanding of bank account options before we start looking at other banks for a solution...?

 

Thanks,

1 REPLY

@trhao, thank you for reaching out to confirm the information you received. Yes, the information you received is correct. Through USAA you would only have the option to establish a joint account with a maximum of 5 account holders. A joint account provides equal access to each account holder to withdraw funds at anytime without the consent or authorization of the other parties on the account. I regret if this does not meet your needs. Please let us know if you have any further questions or concerns. Thank you. - Rhonda