Land & Lot Loans
"Secure your spot. Build when ready."
Finance land purchase now, build later. Options for raw land, improved lots, and everything in between.
20-35%
Min Down
680+
Min Credit
$766,550
Max Loan
Is This Loan Right for You?
This Loan is Perfect If You...
- Want to secure land now before building
- Planning to build in 1-5 years
- Investing in land for appreciation
- Have significant down payment available (20-35%)
- Found the perfect location but not ready to build
This Might NOT Be Right If...
- Ready to build now (use a construction loan instead)
- Limited down payment funds available
- Need to move in quickly
- Want to finance land and construction together
- Uncertain about future building plans
Land & Lot Loans Benefits
Everything you need to know about your benefits
Secure Your Location
Lock in the perfect land before prices rise or someone else buys it
Build on Your Timeline
No pressure to start construction immediately—build when you're ready
Land Appreciation
Hold land as an investment while values potentially increase
Future Construction Path
Clear pathway to refinance into a construction loan when ready
Custom Build Option
Choose your own builders, architects, and design when the time comes
Multiple Land Types
Financing available for raw, unimproved, and improved lots
How It Works
Your path to homeownership in just a few simple steps
Find Your Land
Locate the perfect parcel for your future home or investment.
Secure Financing
Get approved for a land loan based on land type and your down payment.
Close and Own
Close on your land purchase and secure the property for your future plans.
Build When Ready
When you're ready to build, refinance into a construction loan.
Find Your Land
Locate the perfect parcel for your future home or investment.
Secure Financing
Get approved for a land loan based on land type and your down payment.
Close and Own
Close on your land purchase and secure the property for your future plans.
Build When Ready
When you're ready to build, refinance into a construction loan.
Types of Land & Lot Loans
Choose the option that fits your situation
Raw Land (Highest Risk)
No utilities, roads, or improvements. Requires 35%+ down payment with higher rates and shorter terms. Best for long-term land investments.
Unimproved Land
Some utilities nearby but not yet connected. 25-30% down payment with moderate rates. Common for planned development.
Improved Lot (Lowest Risk)
Utilities connected and ready to build. 20-25% down payment with better rates and longer terms. Ideal for near-term construction.
Things to Consider
A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.
Higher Down Payment Required
Land loans require 20-35% down depending on land type. Raw land requires the most; improved lots require the least.
Shorter Loan Terms
Unlike 30-year mortgages, land loans typically range from 5-20 years, resulting in higher monthly payments.
Higher Interest Rates
Land is considered higher risk than developed property, so rates are typically 1-2% higher than traditional mortgages.
Construction Loan Refinance
When you're ready to build, you'll need to refinance into a construction loan—a separate transaction with new costs.
HUD-approved counseling is required to ensure you fully understand these factors before proceeding.
Loan Details
Documentation Required
- Standard income and asset verification
- Land survey or plat map
- Proof of utilities access (for improved lots)
- Land appraisal
- Purchase agreement
Eligible Property Types
- Raw undeveloped land
- Unimproved parcels with nearby utilities
- Improved lots ready to build
- Rural and agricultural land (case by case)
Additional Info
- Land must be zoned appropriately for intended use
- Some lenders require building timeline documentation
- Environmental or flood zone considerations may apply
- Larger acreage may require additional underwriting
Compare Land Loan Options by Type
| Feature | Raw Land | Unimproved | Improved Lot(This loan) |
|---|---|---|---|
| Down Payment | 35%+ | 25-30% | 20-25% |
| Interest Rate | Highest | Moderate | Best Available |
| Typical Term | 5-10 years | 10-15 years | 15-20 years |
| Utilities Required | None | Nearby access | Connected |
| Road Access | Not required | Preferred | Required |
| Risk Level | Highest | Moderate | Lowest |
| Refinance to Construction | May require improvements first | Usually eligible | Typically seamless |
* Rates and terms subject to change. Contact us for current offers.
Frequently Asked Questions
Common questions about Land & Lot Loans
Last updated:
What's the difference between raw land and an improved lot?
Raw land has no utilities, roads, or improvements—it's undeveloped. An improved lot has utilities (water, sewer, electric) connected and is ready for construction. Unimproved land falls in between, with utilities nearby but not connected.
Why is the down payment higher for land loans?
Land is considered higher risk because there's no structure generating value or serving as collateral. Raw land is riskiest (35%+ down), while improved lots with utilities connected require less (20-25%).
Can I get a 30-year land loan?
Land loans typically have shorter terms than traditional mortgages—usually 5-20 years depending on land type. Improved lots may qualify for longer terms, while raw land typically has the shortest terms.
- When you're ready to build, you'll refinance your land loan into a construction loan. The construction loan pays off the land loan and finances your build. After construction, you'll refinance into a permanent mortgage.
- Yes, land loans can be used for investment purposes, including buying land to hold for appreciation or future development. Terms and requirements may vary for non-owner-occupied land.
- Not necessarily. Land loans don't require immediate construction plans, though some lenders may ask about your intended use. If you plan to build within 1-2 years, a construction loan might be more appropriate.
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Ready to Secure Your Land?
Let's find the right financing for your future building site
Or call us directly: (757) 558-2603