Learn how the Luminate Bank Interim Renovation Loan works — short-term interest-only financing for purchase or refinance plus major renovations, paid off by sale or permanent refi.
What Is an Interim Construction Loan? | The 2 Mortgage Guys
Learn how the Luminate Bank Interim Renovation Loan works — short-term interest-only financing for purchase or refinance plus major renovations, paid off by sale or permanent refi.
What Is an Interim Construction Loan?
Temporary Financing — Not a Permanent Mortgage
At a Glance
What an Interim Construction Loan Covers
Interim Construction vs. Permanent Renovation Loans
Keep Exploring
Frequently Asked Questions
See If an Interim Construction Loan Fits Your Project
An Interim Construction Loan (ICL) is a short-term, interest-only loan designed to finance the purchase or refinance of a property along with the cost of major renovations or construction. It is commonly used for renovation projects, including fix-and-flip investments, and is intended to be paid off by selling the property or refinancing into permanent financing once construction is complete.
Unlike FHA 203(k), HomeStyle®, or Freddie Mac CHOICERenovation®, which wrap renovations into a long-term mortgage you keep for years, an interim construction loan is a bridge. You close on the interim note, fund the renovation through escrow draws, make interest-only payments during construction, then exit by selling the property or refinancing into permanent financing.
The Luminate Bank Interim Renovation Loan is classified as a renovation and fix-and-flip product — well suited for large rehabs, investor flips, and projects that need frequent draw access before a permanent take-out loan or sale.
Ryan and Steve help you compare interim construction against permanent renovation programs so you pick the structure that matches your timeline, occupancy, and exit plan.
One short-term note can combine acquisition and renovation when guidelines are met.
Related Luminate Bank Interim Renovation Loan guides and renovation programs to compare before you apply.
Ryan & Steve will review your property, scope of work, and exit strategy 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.