Funds are held in a construction escrow account and released through construction draws as work is completed. The program also allows an initial builder advance at closing and an additional advance after required permits are obtained.
After your Luminate Bank Interim Renovation Loan closes, renovation dollars are placed into a construction escrow account — not paid to the contractor in one lump sum. Contractors are paid through scheduled construction draws as work progresses and inspections are completed.
The program also supports early funding: 10% initial builder funding at closing, plus an additional 10% released when required permits are provided. Draw holdbacks apply (5% generally; 10% in Texas) to protect against incomplete work.
Ryan and Steve walk you through the draw schedule, one-general-contractor requirement, and inspection timing so your GC knows exactly when and how payments will release.
From closing advances through final draw — the interim construction payment sequence.
10% initial builder funding can be released at closing so the project can start without waiting on the first inspection draw.
An additional 10% is released when required permits are provided — supporting early materials and mobilization.
Remaining renovation funds stay in escrow and release as work is completed and inspected — up to two draws per month.
A draw holdback (5%, or 10% in Texas) helps ensure remaining work is finished before full funds are released.
The program requires one GC. Subcontractors are typically paid through that GC — not as separate draw payees on the interim loan.
Draws depend on completed work and inspections. Build inspection lead time into your construction calendar so the GC is not waiting on paperwork.
Draw inspections, final inspection (1004D), title updates, permit fees, contingency, construction management fee, and interest reserve can be financed when guidelines allow.
Contractor payments are temporary construction funding. When work is done, refinance into permanent financing or sell to pay off the interim note.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
Up to two draws per month with inspection-based releases.
Generally 15 months from closing to finish the project.
Licensed borrowers may DIY on eligible investment properties.
Sell or refinance into permanent financing to pay off the interim loan.
Full program overview, LTV grids, draw schedule, and best uses.
Compare interim construction with permanent renovation programs.
Funds are held in a construction escrow account and released through construction draws as work is completed. The program also allows an initial builder advance at closing and an additional advance after required permits are obtained.
Yes. The program allows 10% initial builder funding at closing, plus an additional 10% released when required permits are provided.
The program allows up to two construction draws per month as work progresses and inspections are completed.
One general contractor is required for the project under this interim renovation program.
Ryan & Steve will map closing advances, permit funding, and inspection-based draws for your 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.