Lot Loans
Build or Improve
Lot Loans
Financing for eligible residential lots — whether you're planning to build soon or securing land for a future project.
Who May Benefit
- Buyers securing land for a future home build
- Those who want to purchase a lot before beginning construction planning
- Borrowers who have found a desirable lot in a competitive market
- Buyers who plan to build within a defined timeframe
- Those with strong credit and documented financial strength
How It Generally Works
Lot loans are distinct from construction loans. They finance the purchase of land intended for residential use, without the construction component. Lenders evaluate the lot's intended use, characteristics, access to utilities, and zoning.
Not all raw land qualifies. Lenders typically prefer lots with road access, utility availability, and clear residential zoning. Terms and down payment requirements for lot loans are often different from standard home purchase loans.
Key Considerations
Land Characteristics Matter
Lenders evaluate road access, utility availability, zoning, and intended use. Raw land without utilities or road access may not qualify or may require a larger down payment.
Distinct from Construction Loans
A lot loan finances the land purchase only. Construction financing is a separate loan product. You may need to refinance or obtain new financing when you are ready to build.
Down Payment Requirements
Lot loans typically require larger down payments than standard home purchase loans. Requirements vary by lender, land type, and intended use.
Intended Use
Lenders generally require the lot to be intended for residential use. Commercial, agricultural, or recreational land may not qualify under residential lot loan programs.
Lot loan eligibility depends on land characteristics, intended use, utilities, zoning, and lender requirements. Not all raw land qualifies. Terms subject to change.
Frequently Asked Questions
Interested in Financing a Lot?
Let's talk through what's involved and whether the land you have in mind may qualify.