Construction Loans

Build your dream home with a streamlined loan process that keeps things simple—from groundbreaking to move-in day.

When imagination meets opportunity, a construction loan can be your blueprint to homeownership.

Building a home is one of the most exciting journeys you can take—but it can also feel overwhelming without the right guidance. Whether you're crafting your forever home from the ground up or adding your personal touch to a new build, Luminate Bank is here to guide you every step of the way.

Our Construction Loans offer a seamless way to finance your custom home with just one application and one closing. That means less stress and more confidence as you bring your vision to life.

Let us illuminate the path to building your perfect home—your way.

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What is a Construction Loan?

A construction loan is a short-term, specialized loan designed to fund the building of a new home. Unlike a traditional mortgage, construction loans are based on the projected cost to build, rather than the purchase price of an existing property.

With Luminate Bank’s construction loan options, you only go through the loan process once—before construction begins—making the journey smoother and more predictable. From lot purchase to final draw, we've got your back.

What does that mean for homebuyers?

The construction loan process is a bit different from a traditional mortgage, but our team makes it easy to navigate. Here's what to expect.

What Are the Benefits of a
Construction Loan vs. Any Other Loan?

A construction loan isn’t just financing—it’s flexibility, peace of mind, and a custom path to your new home.

One-Time Close Convenience

One application, one closing, and one smooth process from start to finish.

Tailored Loan Programs

Choose from VA, FHA, Conventional or Portfolio options with competitive terms and flexible requirements.

Free Rate Float-Down

Float down to a lower market rate at the end of construction—no added fees.

TWO-TIME CLOSE

FLEXIBILITY

Offers options within both Conforming and Jumbo loan limits.

Stay in your current home during construction and tailor your end loan to fit your financial goals.

Land Equity Counts

If you already own land, that equity can be applied toward your down payment.

Built-In Support at Every Step

From pre-approval to final inspection, we keep you informed and confident. Your builder's payments are clear, structured, and handled with care - so your build stays on track.

Do you qualify for a Construction Loan?

Not sure if you're eligible for a construction loan? That’s totally normal—and we’re here to help you sort through the details. Qualifying for a construction loan is a bit different from a traditional mortgage, but don’t worry—we’ll walk you through it.

To qualify, lenders typically look at:

Credit Score – Minimums vary by loan type (FHA, Conventional, VA), but generally range from 620–700+.
Debt-to-Income Ratio (DTI) – A favorable DTI shows you can manage monthly payments on top of your current debts.
Income & Employment – Stable income or employment history is key, though projected income may be considered in some cases.
Down Payment or Land Equity – Your land equity can count toward the down payment, and minimums vary by loan type.
Plans & Budget – A realistic and documented construction budget, along with building plans, will be required for approval.

Still unsure? Let’s talk! Our team is happy to review your unique situation, walk through your options, and help you prepare for next steps.

SEE IF YOU QUALIFY

Conventional OTC Construction Loan

Loan-to-Value: Up to 95%
Minimum Credit Score: 700
Eligible Property Types: Site built, modular, manufactured and barndominium homes
Float-Down: Free rate float-down to market rate at end of construction

FHA OTC