Land and lot financing

Land Loans

Capital for builders banking lots and investors developing land.

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50%–65% LTVMax LTV

Rates 12%–14%Interest Rate

~17 days to closeAverage Closing

Financing for builders banking lots and investors developing land. Finished lots with a clear exit strategy are the most straightforward land deals to finance, and they close fastest.

Land is the hardest asset class to finance, and the terms reflect it honestly. A vacant parcel produces no income, costs money to hold, and in a slow market is the last thing to sell. Lenders price that in: leverage runs well below what a building would get, rates sit above the other programs, and terms are short.

Not all land is treated the same. A finished lot — platted, entitled, with utilities at the street and a builder ready to pull permits — is close to a construction deal and gets the best treatment. Entitled but unimproved land is a step behind. Raw acreage with no zoning approval and no infrastructure is the hardest of all, because the path from what it is to what it could be runs through a permitting process nobody controls.

The exit is the whole underwriting question. Builders banking lots ahead of a construction schedule have a strong one: the land becomes the collateral for a construction loan on a known timeline. An investor holding for appreciation has a weaker one, because the repayment depends on finding a buyer rather than on a plan already in motion. Expect to be asked, in specific terms, what pays this loan off and when.

Because the file is smaller than a building's — no rent roll, no operating statements — these deals can close quickly once the title work and the survey are clean. Where they stall is entitlements: a zoning question with no answer yet will hold up a closing longer than any document ever will.

When this loan fits

Banking finished lots ahead of a construction schedule.
Holding a parcel through entitlements toward a defined development plan.
Closing quickly on a lot where the title work and survey are already clean.
Financing land where the exit is a construction loan already on the calendar.

Program terms

These are the figures we publish today. Final terms depend on the property, the sponsor and the structure.

Interest Rate: 12% to 14%
Max LTV: 50% – 65%
Term: 6–12 months
Average Closing: 17 days
Prepayment: No prepayment penalty
Exit Fee: None

What you need to apply

Nothing here is a surprise later. If something is missing we will tell you on the first call.

A specific answer to what repays this loan, and when.
Clean title and a current survey.
The parcel's zoning and entitlement status, with anything pending identified.
Utility availability, or a plan and a budget to bring services to the site.
More equity than a building would require — land carries lower leverage by nature.

Eligible properties

Infill lot
Entitled land
Unentitled acreage
Commercial pad site

Common questions

Why is land more expensive and lower leverage than everything else?

A vacant parcel produces no income, costs money to hold, and in a slow market is the last thing to sell. The terms price that honestly instead of pretending otherwise.

Is raw acreage financeable?

It is the hardest case. A finished lot — platted, entitled, utilities at the street, a builder ready to pull permits — is close to a construction deal and gets the best treatment. Raw acreage with no zoning approval runs through a permitting process nobody controls, and that uncertainty shows up in the terms.

Why do land deals close so quickly?

The file is smaller — no rent roll, no operating statements — so once title and survey are clean there is not much left to review. Where land deals stall is entitlements: an open zoning question holds up a closing longer than any document.

What if I am buying to hold for appreciation?

It is financeable, but it is the weaker exit: repayment depends on finding a buyer rather than on a plan already in motion. Expect lower leverage and a shorter term than a builder with a construction loan on the calendar.

Figures shown are current published parameters and are not an offer or commitment to lend. Availability, pricing, leverage and timelines vary by property, sponsor experience and market conditions.

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