Contractors are paid from construction escrow through inspection-based draws. 10% builder funding at closing plus 10% after permits on the Luminate Bank Interim Renovation Loan.
How Are Contractors Paid — Interim Construction Loan | The 2 Mortgage Guys
Contractors are paid from construction escrow through inspection-based draws. 10% builder funding at closing plus 10% after permits on the Luminate Bank Interim Renovation Loan.
How Are Contractors Paid During the Renovation Process?
Escrowed Funds, Then Inspection-Based Draws
At a Glance
How Contractor Payments Flow
What Borrowers Should Plan For
Keep Exploring
Frequently Asked Questions
Need a Draw Schedule That Matches Your GC?
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.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
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.