Construction Financing
Construction Loans
Build new with one financing plan. From land and draws to permanent mortgage payments, Ryan Minick & Steve DeLon help you structure Conventional, VA, or FHA construction financing through Luminate Bank.
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Construction loans require an approved builder
Luminate Bank’s nationwide construction department vets each builder before work can start. Review the current list Ryan and Steve work with.
How Construction Financing Works
Construction financing covers the cost of building your home in stages. Instead of receiving the full loan at closing, the lender releases funds in draws after inspections confirm progress — foundation, framing, mechanicals, and finish work each unlock the next payment to your builder.
A one-time close construction-to-permanent loan uses a single closing for both the build phase and your long-term mortgage — one set of closing costs and one underwriting path. A two-time close uses a short-term construction loan first, then a second closing into a permanent mortgage when the home is complete.
During construction you typically pay interest only on the amount drawn so far. Full principal-and-interest mortgage payments usually begin after the home is finished and the loan converts — or after you refinance into the permanent loan on a two-time close. Ryan and Steve walk you through which structure fits your timeline, builder, and down payment.
At a Glance
StructureOne-time or two-time close
FundingDraws as work is inspected
During buildInterest on funds drawn
ProgramsConventional, VA, FHA
Typical useNew build & land + build
Best forBuyers building from the ground up
One-Time Close
Construction-to-Permanent Options
One closing covers your build and permanent mortgage — compare minimum down payments across Conventional, FHA, and VA one-time close programs, then run numbers in the calculator below.
5% down
Conventional One-Time Close
Construction-to-permanent with a single closing for the build and your long-term Fannie Mae or Freddie Mac mortgage. PMI may apply under 20% down; builder and plan approval required.
3.5% down
FHA One-Time Close
FHA construction-to-permanent for buyers with moderate credit who want one closing and a government-backed permanent loan. FHA mortgage insurance applies; primary residence and FHA builder rules required.
0% down
VA One-Time Close
Eligible veterans and service members may finance new construction with no down payment when guidelines are met. VA funding fee and builder approval apply; Ryan and Steve coordinate the VA path end to end.
Minimum down payments shown are program guidelines — actual cash needed may vary with land equity, builder deposits, closing costs, and lender overlays. All loans subject to credit and property approval.
Build Budget Tool
Construction Loan Calculator
Add land cost and construction cost to estimate your total project budget, then choose Conventional, FHA, or VA to see down payment, loan amount, and a permanent monthly payment breakdown.
Your construction loan results will show here
Enter land and build costs, pick a program, then hit Calculate Loan Amount.
Construction Program Options
Three common paths to finance a new build — eligibility, down payment, and builder rules differ by program.
Conventional Construction
Construction-to-permanent and two-close conventional products for buyers who meet credit and down payment guidelines. Flexible for primary homes and, when overlays allow, certain second-home scenarios.
VA Construction
Eligible veterans and service members may finance new construction — often with $0 down when guidelines are met. Builder approval, plans, and VA requirements apply; Ryan and Steve coordinate the VA path end to end.
FHA Construction
FHA construction and construction-to-permanent options can help buyers with moderate credit build or buy new. Mortgage insurance, occupancy, and builder rules apply — a strong fit when conventional credit thresholds are out of reach.
From Plans to Permanent Mortgage
A clear process keeps your build on track and your financing aligned with each construction milestone.
Step 1
Plan & pre-approve
Share plans, builder info, land details, and budget so we can match Conventional, VA, or FHA construction financing.
Step 2
Close & start builds
Close on your construction or construction-to-permanent loan; the first draw funds land or early construction costs as approved.
Step 3
Draws & inspections
As each stage is completed, inspectors sign off and the lender releases the next draw to your builder.
Step 4
Convert to permanent
When the home is finished, the loan converts — or you close into a permanent mortgage — and full payments begin.
Mortgage Knowledge Center
Common Construction Questions
Straight answers on one-time and two-time close loans, land and equity, VA/FHA/conventional paths, draws, payments, changes, inspections, documents, rate locks, and whether construction financing is right for you.
What Is a Construction Loan?What Is a One-Time Close Construction Loan?What Is a Two-Time Close Construction Loan?Can I Buy Land and Build?How Much Down Payment Is Required?Can VA Finance Construction?Can FHA Finance Construction?Can Conventional Finance Construction?Can I Use My Land as Equity?Can I Act as My Own Builder?How Are Draw Payments Made?When Do Mortgage Payments Begin?Can I Make Changes During Construction?What If Construction Costs Increase?What Inspections Are Required?How Long Can Construction Take?What Documents Are Needed?Can I Lock My Rate?Is Construction Financing Right for Me?
Get Pre-Approved for Construction Financing
Know your build budget before you break ground. Ryan & Steve match you to the right one-time or two-time close path and walk you through draws — so you can build with confidence.