Yes. The program allows an interest reserve to be included as part of the renovation financing, helping reduce out-of-pocket expenses while construction is underway.
The Luminate Bank Interim Renovation Loan is a short-term, interest-only product during construction. The matrix allows an interest reserve to be financed as part of the renovation financing so borrowers can reduce monthly out-of-pocket interest payments while work is underway.
Eligible renovation costs already include labor and materials, draw and final inspections, title updates, permit fees, contingency reserve, construction management fee, and interest reserve. Financing the reserve simply rolls projected interest into the total loan subject to LTV and maximum loan amount.
Ryan and Steve size the reserve to the construction timeline — generally up to 15 months from closing on a 12-month interest-only interim product — so cash flow stays predictable through draws and inspections.
Same interim mechanics — with interest covered from financed reserve instead of (or in addition to) monthly cash payments.
Interest reserve is included among eligible renovation soft costs and financed into the total interim loan when the structure and LTV allow.
The eligible product is a 12-month interest-only interim loan. Reserve funds can be applied to those interest payments as construction progresses.
Contractor payments still flow through escrowed renovation draws — up to two per month — based on completed work and inspections.
When the project is complete, refinance into permanent financing or sell. The financed reserve becomes part of the balance you pay off at exit.
Investors and homeowners often prefer to keep liquid reserves for overruns, furniture, or the next deal instead of writing monthly interest checks.
Major rehabs, pools, tear-downs, and flips with frequent draws benefit from predictable carrying-cost coverage across the construction period.
Financing interest increases total loan amount. We confirm the reserve still clears purchase/refinance LTV grids and the $1.5M / $500K lien caps.
Borrowers must qualify for permanent financing at 1% above market. A larger interim balance from financed interest still needs a clear refinance or sale exit.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
Escrowed funds, draws, interest-only payments, then refinance or sell.
No MI required on this interim renovation program.
First lien up to $1.5M; second lien up to $500,000.
700 conforming / 720 above conforming limits.
Full program overview, LTV grids, draw schedule, and best uses.
Compare interim construction with permanent renovation programs.
Yes. The program allows an interest reserve to be included as part of the renovation financing, helping reduce out-of-pocket expenses while construction is underway.
An interest reserve sets aside funds — often financed into the loan — to cover interest-only payments during the construction period so you do not write a check every month from cash.
Yes. Including an interest reserve adds to the total financed amount and must still fit within LTV and maximum loan amount guidelines.
The eligible loan product is a 12-month interest-only interim loan, with a construction period of generally 15 months from closing.
Ryan & Steve will size an interest reserve against your timeline, LTV, and permanent take-out for the Luminate Bank Interim Renovation Loan.
All loans are subject to credit and property approval. Luminate Bank Interim Renovation Loan program guidelines, LTV limits, loan amounts, and pricing are subject to change without notice and may not be available in all areas. This is not an offer to enter into an agreement. Information is for educational purposes only and is not a commitment to lend.