Construction Financing

Construction Loans

Build new with one financing plan. From land and draws to permanent mortgage payments, Ryan Minick & Steve DeLon help you structure Conventional, VA, or FHA construction financing through Luminate Bank.

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New home construction with construction loan financing

Construction loans require an approved builder

Luminate Bank’s nationwide construction department vets each builder before work can start. Review the current list Ryan and Steve work with.

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How Construction Financing Works

Construction financing covers the cost of building your home in stages. Instead of receiving the full loan at closing, the lender releases funds in draws after inspections confirm progress — foundation, framing, mechanicals, and finish work each unlock the next payment to your builder.

A one-time close construction-to-permanent loan uses a single closing for both the build phase and your long-term mortgage — one set of closing costs and one underwriting path. A two-time close uses a short-term construction loan first, then a second closing into a permanent mortgage when the home is complete.

During construction you typically pay interest only on the amount drawn so far. Full principal-and-interest mortgage payments usually begin after the home is finished and the loan converts — or after you refinance into the permanent loan on a two-time close. Ryan and Steve walk you through which structure fits your timeline, builder, and down payment.

At a Glance

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))}

One-Time Close

Construction-to-Permanent Options

One closing covers your build and permanent mortgage — compare minimum down payments across Conventional, FHA, and VA one-time close programs, then run numbers in the calculator below.

{[ { id: 'conventional', downLabel: '5% down', title: 'Conventional One-Time Close', desc: 'Construction-to-permanent with a single closing for the build and your long-term Fannie Mae or Freddie Mac mortgage. PMI may apply under 20% down; builder and plan approval required.', path: '/construction-loan-conventional', icon: ( ), }, { id: 'fha', downLabel: '3.5% down', title: 'FHA One-Time Close', desc: 'FHA construction-to-permanent for buyers with moderate credit who want one closing and a government-backed permanent loan. FHA mortgage insurance applies; primary residence and FHA builder rules required.', path: '/construction-loan-fha', icon: ( ), }, { id: 'va', downLabel: '0% down', title: 'VA One-Time Close', desc: 'Eligible veterans and service members may finance new construction with no down payment when guidelines are met. VA funding fee and builder approval apply; Ryan and Steve coordinate the VA path end to end.', path: '/construction-loan-va', icon: ( ), }, ].map((opt, i) => (
{opt.icon}
{opt.downLabel}

{opt.title}

{opt.desc}

Learn more
))}

Minimum down payments shown are program guidelines — actual cash needed may vary with land equity, builder deposits, closing costs, and lender overlays. All loans subject to credit and property approval.

Build Budget Tool

Construction Loan Calculator

Add land cost and construction cost to estimate your total project budget, then choose Conventional, FHA, or VA to see down payment, loan amount, and a permanent monthly payment breakdown.

$

Purchase price of the lot — or enter 0 if you already own the land and will use equity toward the deal.

$

Builder contract, contingency, and soft costs you plan to finance with the construction loan.

Loan program

style= : undefined} aria-pressed={programId === prog.id} > {prog.label} {prog.description} ))}
%

{selectedProgram.label} minimum is {selectedProgram.minDown}%. You can put more down — we'll use at least the program minimum.

{downBelowMin && (
%
{[15, 20, 30].map((t) => ( ))}
$
$
$
· % down · {ltv.toFixed(1)}% LTV

Cost of land
Cost of construction
Total project cost
Down payment (%)
Loan amount

Payment breakdown

Permanent monthly payment after conversion · % · -year

Principal & interest
Property taxes
Homeowners insurance
{hoa > 0 && (
HOA dues
{(miMonthly > 0 || programId === 'va') && (
Total monthly payment
{interestOnlyMonthly > 0 && (

During construction, interest-only on a fully drawn loan would be about /mo — actual draws are usually lower until the home is finished.

This calculator is for informational purposes only. Results are estimates and are not exact — they do not include all closing costs, prepaid interest, or escrow deposits. Total loan amount = land + construction − down payment; PMI/MIP figures are illustrative. Program minimums, overlays, builder approval, and land equity can change cash needed. Contact us for a personalized quote.

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Construction Program Options

Three common paths to finance a new build — eligibility, down payment, and builder rules differ by program.

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))}

From Plans to Permanent Mortgage

A clear process keeps your build on track and your financing aligned with each construction milestone.

{[ ['Plan & pre-approve', 'Share plans, builder info, land details, and budget so we can match Conventional, VA, or FHA construction financing.'], ['Close & start builds', 'Close on your construction or construction-to-permanent loan; the first draw funds land or early construction costs as approved.'], ['Draws & inspections', 'As each stage is completed, inspectors sign off and the lender releases the next draw to your builder.'], ['Convert to permanent', 'When the home is finished, the loan converts — or you close into a permanent mortgage — and full payments begin.'], ].map(([t, d], i) => (

Step {i + 1}

))}

Mortgage Knowledge Center

Common Construction Questions

Straight answers on one-time and two-time close loans, land and equity, VA/FHA/conventional paths, draws, payments, changes, inspections, documents, rate locks, and whether construction financing is right for you.

What Is a Construction Loan? What Is a One-Time Close Construction Loan? What Is a Two-Time Close Construction Loan? Can I Buy Land and Build? How Much Down Payment Is Required? Can VA Finance Construction? Can FHA Finance Construction? Can Conventional Finance Construction? Can I Use My Land as Equity? Can I Act as My Own Builder? How Are Draw Payments Made? When Do Mortgage Payments Begin? Can I Make Changes During Construction? What If Construction Costs Increase? What Inspections Are Required? How Long Can Construction Take? What Documents Are Needed? Can I Lock My Rate? Is Construction Financing Right for Me?

Get Pre-Approved for Construction Financing

Know your build budget before you break ground. Ryan & Steve match you to the right one-time or two-time close path and walk you through draws — so you can build with confidence.

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