Temporary, interest-only construction financing for major renovations before permanent financing or property sale — fund the work, draw as progress is made, then refinance or sell to pay off the interim loan.
Interim construction
Interest-only · Up to 2 draws/month
Qualify for permanent financing at 1% above market rate
An interim construction loan is temporary, interest-only financing used during construction or renovation. You close on the interim loan, renovation dollars are held in escrow, and funds are released through draws as work is completed and inspected.
Unlike permanent renovation programs such as FHA 203(k), HomeStyle®, or Freddie Mac CHOICERenovation®, the Luminate Bank Interim Renovation Loan is designed as a short-term bridge — typically paid off by selling the property or refinancing into permanent financing once the project is complete.
Ryan and Steve help investors and owner-occupants map the draw schedule, contractor requirements, and exit strategy — refinance or sale — before you commit to the interim note.
700 minimum for loan amounts up to conforming limits.
720 minimum for loan amounts above conforming limits.
$100,000 minimum total loan amount.
Maximum loan amount up to $1,500,000.
Maximum loan amount up to $500,000 with a maximum 80% CLTV for eligible primary and second homes.
Loan-to-value limits vary by transaction type, occupancy, and loan amount tier.
Purchase
| Primary & second home — conforming loan limit | 90% |
| Primary residence — up to $1 million | 85% |
| Primary residence — up to $1.5 million | 80% |
| Second home — up to $1.5 million | 80% |
| Investment property — up to $1.5 million | 75% |
Refinance
| Primary residence — up to $1.5 million | 80% |
| Second home — up to $1.5 million | 80% |
| Investment property — up to $1.5 million | 75% |
Single-family
Modular
Manufactured homes (primary & second homes)
2–4 unit investment properties
Primary residences
Second homes
Investment properties
Second liens are limited to a maximum 80% CLTV for eligible primary and second homes.
Not required on this interim construction product.
$50,000 minimum renovation scope.
No maximum repair amount listed in program guidelines. Contingency reserve is not required.
DIY work is permitted only on investment properties when the borrower is a licensed contractor.
Payments during the construction period are interest-only for up to 12 months while renovation work is underway.
Borrowers must qualify for the permanent financing at 1% above the market rate — ensuring the exit refinance or sale strategy is viable before the interim loan closes.
Luminate Bank Interim Renovation Loan only
Locked to interim construction rules — interest-only payments, $100,000 minimum loan, $50,000 minimum repairs, occupancy LTV tiers, no mortgage insurance, financed interest reserve, and first-lien amounts up to $1.5M.
Interim renovation rules applied
$35,000 down
Estimated Interest-Only Payment
$2,605/mo
During construction · no PMI
Rehab escrow breakdown
Funding & draws
This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Contact us for a personalized quote.
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. Calculator estimates are illustrative and do not constitute underwriting approval.
Mortgage Knowledge Center
Deep-dive guides on what an interim construction loan is, how it works, who qualifies, buying and renovating, refinancing, fix-and-flip, investor eligibility, property types, eligible renovations, tear-down/rebuild, pools, credit, loan amounts, mortgage insurance, interest reserve, contractor payments, draws, timelines, DIY work, and what happens after construction.
Ryan and Steve will review your project scope, draw schedule, and exit strategy — then compare the Luminate Bank Interim Renovation Loan with permanent renovation programs so you pick the right structure.