No. The Interim Construction Loan program does not require mortgage insurance.
The Luminate Bank Interim Renovation Loan matrix states mortgage insurance is not required. That simplifies monthly carrying costs during the short-term, interest-only construction period — especially on purchase LTVs that would typically trigger PMI or MIP on a permanent mortgage.
You still pay interest on the interim note (or finance an interest reserve), plus property and construction-related insurance. The “no MI” rule is specific to mortgage insurance on this interim product.
When you refinance into permanent financing after the rehab, that permanent loan’s MI or MIP rules apply. Ryan and Steve model both the interim carrying cost and the permanent take-out so you are not surprised at exit.
Interim financing already carries construction risk and interest-only payments — skipping MI keeps the short-term cost structure cleaner.
Without PMI or MIP on the interim note, your cash outflow during construction is primarily interest (unless you finance an interest reserve) plus taxes and insurance.
Purchase LTV can reach 90% at conforming limits for primary and second homes on the matrix — without the MI overlay typical of permanent high-LTV mortgages.
When you refinance permanently, we quote MI or MIP on that product separately so you can decide sell vs refinance with clear numbers.
You may also finance construction interest into the loan, further reducing out-of-pocket payments while draws and work are underway.
The eligible product is a 12-month interest-only interim loan. An interest reserve may be financed into the loan if that structure fits your deal.
Keep hazard insurance and any required construction coverage in force while work is underway.
Plan for draw holdback (5%, or 10% in Texas) and any contingency you choose to include — contingency is not required by the matrix.
Refinance closing costs, possible MI on the permanent loan, or sale costs if you exit by selling after completion.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
First lien up to $1.5M; second lien up to $500,000.
700 conforming / 720 above conforming limits.
Interest reserve may be financed to reduce out-of-pocket costs.
New swimming pool construction is an eligible improvement.
Full program overview, LTV grids, draw schedule, and best uses.
Compare interim construction with permanent renovation programs.
No. The Interim Construction Loan program does not require mortgage insurance.
Purchase LTV can go as high as 90% at conforming limits for primary and second homes under the matrix — and mortgage insurance is still not required on this interim product. Final approval depends on credit, occupancy, and underwriting.
Possibly. When you refinance into permanent financing, that permanent product’s MI or MIP rules apply. The interim loan itself does not require mortgage insurance.
Property insurance, and any hazard or builder’s risk coverage required during construction, still apply. “No mortgage insurance” does not mean no insurance of any kind.
Ryan & Steve will walk through interim carrying costs and permanent take-out MI rules for your Luminate Bank Interim Renovation Loan scenario.
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.