Whether you’re building a home from the ground up or renovating your current space, we offer flexible loan options to support your vision. Our renovation and construction loans are designed to fund every stage of your project, with expert support to keep things moving smoothly from start to finish.
Renovation and construction loans provide financing to build a home from the ground up or to renovate an existing property. These loans are structured to cover the cost of materials, labor, and improvements, giving you the funds you need at each stage of the project.
Yes. Renovation loans are ideal for buyers looking to purchase and upgrade a home that needs work. You can finance both the purchase price and renovation costs in one mortgage — making it easier to turn a fixer-upper into a move-in-ready home or investment.
Construction loans are short-term loans used to finance the building of a new home. Funds are released in stages as the work progresses. Once construction is complete, the loan is typically converted into a permanent mortgage through a refinance or construction-to-perm loan.
You can use these loans for primary homes, second homes, and investment properties. Renovation loans cover improvements like kitchens, bathrooms, roofs, or full remodels. Construction loans are used for custom homes, major rebuilds, or adding structures like guest houses or ADUs.
Requirements vary, but many renovation and construction loans allow down payments starting at 10% to 20%, depending on the loan type and scope of work. Some government-backed renovation loans, like FHA 203(k), offer more flexibility for lower down payments.
These loans give you the flexibility to customize your home or investment property. They combine purchase and project costs into one loan, offer interest-only payments during construction, and can increase property value and equity once improvements are complete..
At LUMI Funding Group, we help clients turn ideas into finished homes. Whether you’re renovating a property or building one from the ground up, our team brings experience, clear guidance, and a streamlined process to complex projects.
We work closely with borrowers, contractors, and lenders to ensure every detail is handled — from budget review to fund disbursement. You’ll get expert support, custom loan options, and a mortgage that fits your timeline and vision. With LUMI, you can focus on the project — and we’ll handle the financing.
Whether you’re remodeling a fixer-upper or building your dream home, it’s important to understand how these loans work. We’ve answered the most common questions to help you prepare, budget, and move forward with confidence.
A renovation loan finances repairs or upgrades to an existing home. A construction loan funds the building of a brand-new property. Both allow you to borrow based on the post-completion value, but construction loans usually involve phased disbursements tied to project progress.
Yes. Many homeowners use renovation loans to refinance their mortgage and fund improvements at the same time. This allows you to upgrade your home, potentially improve its value, and spread the cost of renovations over time with one loan payment.
Most renovation and construction loans require a minimum credit score between 620 and 680, depending on the loan type. Government-backed programs may offer more flexibility, while private or jumbo options may require stronger credit and reserves.
Yes, most lenders require you to work with a licensed contractor and submit detailed plans, budgets, and timelines during the loan approval process. For larger projects, a builder contract and permits are typically required before funds are released.
In many cases, yes. While primary homes are the most common use, some lenders offer construction loans for second homes and even investment properties. Loan terms and down payment requirements may vary depending on the property type and borrower profile.
These loans require more documentation and oversight, so they typically take longer than a standard mortgage. Expect 45 to 60 days for approval, with construction timelines varying based on project scope. We’ll help keep the process organized and moving efficiently.
Renovation loans fund home improvements, while construction loans cover new builds.
These loans allow you to finance both the purchase price and project costs in a single mortgage.
Available for primary homes, second homes, and investment properties.
Typical down payments range from 10% to 20%, with lower options for FHA-backed renovation loans.
Most require licensed contractors, detailed plans, and phased inspections.
Ideal for buyers or owners looking to customize, upgrade, or create long-term value.
