Vacant Land Loan Programs

Financing for fully undeveloped property with no structures, utilities, road access, or site improvements. Raw land loans are designed for buyers who want to secure acreage now for future development, custom home construction, recreational use, agricultural planning, or long-term investment.

Because raw land has no completed improvements and may not generate income, lenders generally view it as higher-risk collateral than a finished home, improved lot, or construction-ready parcel. For that reason, programs commonly require a larger down payment, often around 35% depending on the property, borrower strength, location, intended use, and lender guidelines.

Common review items may include a land appraisal, survey, legal description, zoning confirmation, access verification, flood-zone review, environmental considerations, title work, tax information, and a clear explanation of the buyer's plan for the property.

Financing for parcels that have some basic infrastructure in place, such as road access, a cleared homesite, nearby utilities, partial grading, or improved access, but are not yet fully build-ready. Often used by buyers who want to secure a future homesite before final utility connections, permits, septic, well, or construction plans are completed.

Because the property has more utility or access potential than raw land but still requires additional work before construction, lenders usually view it as moderate-risk collateral. A typical structure may require around 25% down, though the final requirement depends on borrower strength, location, access, utilities, zoning, and appraisal support.

Common review items may include a land appraisal, survey, legal description, title work, zoning confirmation, road or easement access, flood-zone review, utility availability, soil or perc information when applicable, and a clear explanation of how the buyer plans to improve or eventually build on the property.

Financing for shovel-ready residential lots where major site infrastructure is already available — road access, water, sewer or approved septic, and electric service at or near the property. Commonly used by buyers who want to secure a buildable homesite now and begin construction later, or who are finalizing plans before moving into a construction loan.

Because the lot is closer to construction-ready and typically easier to evaluate, lenders generally view it as lower risk than raw or unimproved land. Improved lot financing may offer the most affordable land-loan structure, with a typical down payment of around 15% depending on the borrower's profile, property location, appraisal support, utility status, and lender guidelines.

Common review items may include a lot appraisal, survey, legal description, title work, zoning confirmation, utility availability or connection documentation, road or easement access, flood-zone review, tax information, HOA or architectural guidelines when applicable, and confirmation that the parcel can support the borrower's intended residential use.

Financing that combines the purchase of the lot and the cost to build the home into one coordinated construction package. Ideal when a borrower is buying land specifically to build, wants to move directly from lot acquisition into construction, or prefers one financing strategy instead of arranging separate land and construction loans.

If the borrower already owns the lot, the appraised land value or available land equity may be credited toward the required down payment or equity contribution. Depending on the program, this can reduce cash out of pocket and may even satisfy a meaningful portion of the required equity.

During construction, funds are usually released in scheduled draws as work is completed and inspected. Borrowers may make interest-only payments during the build based on the amount actually disbursed, then transition to a permanent mortgage or long-term repayment structure once the home is complete, depending on whether the program is a one-time-close or two-time-close structure.

Common documentation may include the lot purchase contract or deed, land payoff information if applicable, construction contract, builder credentials, plans and specifications, detailed budget, draw schedule, permits or permit path, survey, appraisal based on the completed value, title work, insurance requirements, and verification of borrower income, assets, credit, and reserves.

Financing for farmland, ranch acreage, timber tracts, equestrian property, hobby farms, and larger rural parcels that fall outside typical residential lot guidelines. Structured for properties where acreage, zoning, access, productive use, and long-term land value matter as much as the borrower's personal credit and financial profile.

Because these properties may involve farming, grazing, recreational use, timber, conservation, or mixed residential-agricultural purposes, lenders typically review the intended use, zoning classification, access, water availability, soil or land characteristics, and whether the property can reasonably support the borrower's plan. Larger parcels may also require a specialized appraisal and a lender familiar with rural collateral.

Common review items may include a land or agricultural appraisal, survey, legal description, title work, zoning confirmation, road or easement access, flood-zone review, environmental considerations, water rights or well information when applicable, soil or agricultural-use details, tax classifications, leases, conservation restrictions, and documentation of any existing farm, ranch, or recreational income.