Yes. Unlike many renovation loan programs, the Interim Construction Loan permits tear-down and rebuild projects.
Many permanent renovation products limit how far you can go — especially when the existing structure must come down. The Luminate Bank Interim Renovation Loan matrix explicitly allows tear-down and rebuild, alongside structural repairs, foundation work, and other major scopes.
Because the product is a short-term interim construction loan, it fits projects that need full rebuild timelines, frequent draws (up to two per month), and a clear exit into permanent financing or sale once the new home is complete.
Ryan and Steve help you line up permits, GC selection, draw schedule, and permanent take-out qualification so a tear-down/rebuild does not stall between demolition and certificate of occupancy.
Same interim mechanics as other major rehabs — with more emphasis on permits, inspections, and construction timeline.
Funds for eligible construction costs are escrowed. Limited builder advances may be available at closing and after required permits are provided.
Your general contractor is paid through inspection-based draws — up to two per month — as demolition and rebuild milestones are completed.
The eligible product is a 12-month interest-only interim loan. An interest reserve may be financed to reduce out-of-pocket carrying costs.
Pay off the interim note by refinancing into permanent financing or selling. Borrowers must qualify for permanent financing at 1% above market rate during underwriting.
Many FHA/conventional renovation programs restrict or prohibit full tear-down. This interim product lists tear-down and rebuild as an eligible repair.
First lien up to $1.5 million and second lien up to $500,000 support larger rebuild budgets than many traditional renovation products.
Up to two draws per month helps keep rebuild schedules moving when materials and trades need timely funding.
You are not forced into a permanent renovation mortgage you never intended to keep — refinance or sell when the rebuild is done.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
Renovation/Fix & Flip is an eligible use for investor projects.
Investment property eligibility, LTV, and underwriting for investor borrowers.
Single-family, modular, manufactured, and 2–4 unit investment properties.
Structural, non-structural, pools, remediation, and more.
Full program overview, LTV grids, draw schedule, and best uses.
Compare interim construction with permanent renovation programs.
Yes. Unlike many renovation loan programs, the Interim Construction Loan permits tear-down and rebuild projects under the Luminate Bank Interim Renovation Loan program.
Tear-down and rebuild is an eligible repair type on the matrix, but timelines, permits, draws, and permanent take-out qualification still apply — plan the full construction period carefully.
Borrowers generally have 15 months from closing to complete the renovation project, with a 12-month interest-only interim loan product.
Yes. The program contemplates one general contractor. DIY work is only permitted on investment properties when the borrower is licensed.
Ryan & Steve will review your demolition plan, rebuild budget, and permanent take-out against Luminate Bank Interim Renovation Loan guidelines.
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.