Your Home, Your Way: Construction Loans That Fit You
Your Home, Your Way: Construction Loans That Fit You
When imagination meets opportunity, a construction loan can be your blueprint to homeownership. At Luminate Bank®, we know that building a home is one of the most exciting journeys you can take, but it can also feel overwhelming without the right guidance. That’s where we come in.
Whether you’re crafting your forever home from the ground up or adding your personal touch to a brand-new build, our construction loan products are designed to keep your path clear, your process simple, and your confidence high.
Why Build Now?
If you’ve been house hunting, you might have noticed something encouraging: it’s getting easier to find the right fit, thanks to more homes hitting the market and slightly improving inventory levels. But if the available homes still don’t quite match your vision (or you’d rather not compromise), building might be the smarter choice.
A newly built home offers the chance to tailor everything to your preferences, from layout to finishes. We also know it’s important to weigh both the pros and cons of building versus buying an existing home. But with the flexibility and low-to-no-down-payment options that come with a Luminate construction loan, building your dream home could be more accessible than you think.
And with more people re-entering the market, waiting too long could mean missing your ideal window. So if you’ve been considering a move, building may be your way to get exactly what you want without the competition of bidding wars.
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, which is based on the purchase price of an existing home, a construction loan is based on the cost to build your vision from scratch.
With Luminate Bank’s construction loans, you’ll enjoy a streamlined process with one application and one closing so you can focus more on bringing your dream to life and less on paperwork. From lot purchase to final inspection, we’ve got your back every step of the way.
Why Choose a Construction Loan?
When you choose a construction loan over a traditional mortgage, you’re choosing flexibility, control, and peace of mind. Here’s why it might be the perfect fit for you:
- One-Time Close Convenience: One application, one closing, one smooth process. From groundbreaking to move-in day.
- Tailored Loan Programs: Choose the loan type that works best for you: VA, FHA, Conventional, or Portfolio. Each one has competitive terms and flexible requirements.
- Free Rate Float-Down: If rates drop during construction, you can float down to the lower rate at no extra cost.
- Land Equity Counts: Already own your lot? Your land equity can count toward your down payment.
- Stay in Your Current Home: With our two-time close option, you can stay in your current home while you build, then refinance into the right mortgage for your goals.
- And no matter which path you take, our team is here to keep you informed and confident, ensuring your builder’s payments are structured and your timeline stays on track.
What Loan Options Are Available?
We offer a diverse portfolio of construction loan programs to fit a variety of needs:
| Loan Type | Loan-to-Value | Minimum Credit Score | Eligible Properties |
|---|---|---|---|
| Conventional OTC | Up to 95% | 700 | Site-built, modular, manufactured, barndominium |
| FHA OTC | Up to 96.5% | 620 | Site-built, modular, manufactured, barndominium |
| VA OTC | Up to 100% | 620 | Site-built, modular, manufactured, barndominium |
| Two-Time Close | Up to 90% | 700 | Site-built, modular, manufactured, barndominium |
No matter which program you choose, each comes with our signature support, transparent communication, and that all-important free rate float-down.
Do You Qualify for a Construction Loan?
Not sure if you’re eligible? Don’t worry, we’ll help you figure it out. Generally, we take a look at:
- Credit Score (minimums vary by loan type)
- Debt-to-Income Ratio (DTI) to ensure you can manage payments
- Stable Income & Employment History
- Down Payment or Land Equity
- Realistic Building Plans & Budget
If you’re unsure where you stand, reach out! We’re happy to review your unique situation and guide you toward the next step.
Let’s Build Something Amazing Together
With more homes coming on the market and buyers weighing their options (here’s why that matters), it’s a great time to decide what works best for you. If your dream home isn’t already out there, let’s build it. Your way.
At Luminate Bank, we’re driven by humility, heart, and a desire to make the lending process approachable. With our construction loan expertise and your vision, your dream home is closer than you think.
Contact us today to get started or apply now and take the first step toward building your perfect home.
