Land / Lot Loan
Secure the dirt now, build later.
Financing for improved lots, raw land, and acreage, whether you intend to build soon, hold for appreciation, or prepare a site for development.
What makes this loan different
- Improved lots, raw land, and acreage
- Typically 25% to 50% down depending on improvements
- Bridge into construction financing later
- Rural and unincorporated parcels considered
Who this is built for
- Buyers securing a lot before designing a home
- Builders assembling a pipeline
- Long-term land holders
Improved versus raw
A platted lot with utilities at the street, legal access, and a septic or sewer approval is a very different loan than twenty acres with a gravel road. Improvements drive both leverage and rate, and a feasibility or perc test in hand before you apply can change terms meaningfully.
Down payments run from 25% on a finished lot to 40% or more on raw acreage.
Planning the next step
If you intend to build, tell the lender now. Some land loans roll into construction financing, and structuring for that from the start avoids a second set of costs.
What lenders typically ask for
- Purchase contract and legal description
- Survey, and documentation of zoning and permitted use
- Evidence of utility availability — water, sewer or septic feasibility, power, and access
- A statement of intended use and timeline
- Standard credit, income, and asset documentation
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Raw land and improved lots are different products.
A recorded lot in a developed subdivision with utilities at the street finances very differently from acreage with no access or services. The gap in down payment and availability between the two is large.
Terms are shorter and amortization is often partial.
Land financing commonly carries a shorter term with a balloon rather than a thirty-year amortization. The repayment plan needs to exist at the outset.
Down payment runs well above improved property.
Lenders hold more equity against land because it produces no income and is slower to sell.
Intent to build may point to a different product.
Where construction is planned within a reasonable window, a construction loan that includes the land acquisition is often cheaper overall than buying the land separately and financing the build later.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.