Hard Money Loan Questoin

[John Guerrero]

Hey Everyone,

I recently started my first flip in San Antonio, and I took out a hard money loan from Sherman Bridge. I qualified for their 90/10 plan which means the loan is for 90% of the property purchase price and rehab cost. 

90% of (Property Price + Estimated Rehab cost)

At closing, part of my down payment is the 10% of (Property Price and Estimated Rehab Cost). 

Fast forward  a few weeks and I request my first draw for the rehab money.  Unfortunately, I find out that they will only give me 80% of the approved draw amount, and that the remaining 20% of the rehab cost is my sole responsibility. For example, I was approved for $4,051 but they will only fund me $3,439.80. 

Does this seem right? Is there something that I am missing? The way i see it, i already paid my 10% up front at closing, why should I be responsible for an additional 20% of the rehab cost?

Any clarity on the matter would be appreciated.

Regards,

John