Land Loans | Lot & Raw Land Financing

Land Loan Highlights

Potential features for qualifying borrowers — exact terms vary and every loan is subject to approval.

01

Up to 75% Financing

Available for qualifying developed lots. Qualified borrowers may finance up to 75% of the property’s eligible value, subject to underwriting.

02

Raw Land Up to 65% LTV

Financing may be available up to 65% LTV for qualifying undeveloped or raw land, subject to property review and approval.

03

20-Year Amortization

Monthly payments are calculated using a 20-year amortization schedule, even though the balloon term is shorter.

04

Up to 45% DTI

Qualified borrowers may be eligible with a debt-to-income ratio up to 45%, subject to underwriting approval.

What Is a Land Loan?

A land loan is financing specifically designed for the purchase of property that may not yet have a completed home on it.

Instead of financing an existing house, the loan is secured by the land itself. That can give qualified buyers a way to purchase the property now and decide what comes next.

Actual property eligibility is subject to underwriting approval.

Picturesque rural landscape featuring lush fields and a winding dirt pathway under a clear sky.

01

Developed Lot Loans

A developed lot generally has more infrastructure and improvements already in place than raw land.

Qualified developed lots may be eligible for financing up to:

75% LTV

Loan Structure

Maximum 75% LTV
36-month balloon term
Payments amortized over 20 years
Maximum 45% DTI

Ask About Developed Lot Financing

02

Raw Land Loans

Raw or undeveloped land generally has fewer improvements and may not yet have utilities, roads, or other infrastructure in place.

Qualified raw land may be eligible for financing up to:

65% LTV

Loan Structure

Maximum 65% LTV
60-month balloon term
Payments amortized over 20 years
Maximum 45% DTI

Ask About Raw Land Financing

Developed Lot vs. Raw Land

The correct loan structure will depend on the property and your overall qualification.

Feature	Developed Lot	Raw / Undeveloped Land
Maximum LTV	75%	65%
Balloon Term	36 Months	60 Months
Amortization	20 Years	20 Years
Maximum DTI	45%	45%

What Does a Balloon Term Mean?

These land loans are amortized over 20 years, but the full loan term is shorter.

That means your monthly payment is calculated as though the loan were being repaid over 20 years, while the remaining balance becomes due at the end of the balloon period.

Developed Lots

36 months

The balloon is due after 36 months.

Raw Land

60 months

The balloon is due after 60 months.

Before using a land loan, it’s important to have a plan for what happens at the end of the balloon period. That may include refinancing, paying off the balance, or transitioning into another financing strategy, subject to available options at that time.

How Much Down Payment Is Needed?

Your required down payment depends on whether the property is considered developed or undeveloped.

Developed Lot

With financing up to 75% LTV, a borrower would generally need at least:

25%

Equity / down payment

Raw Land

With financing up to 65% LTV, a borrower would generally need at least:

35%

Equity / down payment

Actual loan amounts and required funds are subject to property value and underwriting approval.

Who Might Consider a Land Loan?

A land loan may be worth exploring if you:

Found property you want to secure now
Plan to build later
Want to purchase land before construction begins
Are buying a developed residential lot
Are purchasing raw or undeveloped land
Don’t want to pay cash for the full purchase price

Land Loan vs. Construction Loan

A land loan and a construction loan serve different purposes.

Land Loan

Used primarily to finance the purchase of the land itself.

Construction Loan

Used to finance the construction of a home or other eligible improvements.

If you’re planning to build soon, we’ll help you determine whether purchasing the land separately or moving directly into construction financing makes more sense.

Learn about Construction Loans →

Frequently Asked Questions About Land Loans

Straight answers on developed lots, raw land, balloon terms, down payment, and DTI. Property eligibility and terms are subject to underwriting.

Can I finance the purchase of vacant land?

Yes. This program provides financing options for qualifying developed lots and qualifying undeveloped or raw land. Property eligibility is subject to underwriting approval.

How much can I finance on a developed lot?

Qualified developed lots may be financed up to 75% loan-to-value, subject to underwriting.

How much can I finance on raw land?

Qualified undeveloped or raw land may be financed up to 65% loan-to-value, subject to underwriting.

How much down payment do I need for a developed lot?

At the maximum 75% LTV, a borrower would generally need at least 25% toward the purchase. Actual required funds depend on property value and underwriting approval.

How much down payment do I need for raw land?

At the maximum 65% LTV, a borrower would generally need at least 35% toward the purchase. Actual required funds depend on property value and underwriting approval.

What is the loan term?

Developed lot loans have a 36-month balloon structure. Raw land loans have a 60-month balloon structure. Payments are calculated using a 20-year amortization schedule.

Are the payments calculated over only 3 or 5 years?

No. The program uses a 20-year amortization schedule even though the balloon term is shorter.

What happens when the balloon comes due?

The remaining loan balance becomes due at the end of the applicable balloon term. Borrowers should have a repayment or refinance strategy in place. Available options at that time are subject to qualification.

What is the maximum debt-to-income ratio?

The program allows a maximum DTI of 45%, subject to underwriting approval.

Can I buy land now and build later?

Potentially. A land loan may provide a way to purchase property now and pursue construction financing separately later, if that later program is available and you qualify.

Is raw land treated differently from a developed lot?

Yes. Developed lots allow higher maximum financing and have a shorter balloon term than raw land. We’ll review the property details and determine how it is classified for financing purposes.

Can I use this loan to build a house?

This program describes financing for the land itself. Construction financing would typically require a separate construction loan program.

Are rates and fees competitive?

Competitive rates and fees may be available. We’ll quote current pricing for your specific property and qualification.

Does every piece of land qualify?

No. All loans are subject to property and underwriting approval. Terms shown are current program guidelines, not guarantees.

How do I know whether my property is considered developed or raw?

We’ll review the property details and determine how it is classified for financing purposes.

Own the Land. Build the Plan.

You don’t always need to build immediately to move forward with your plans.

A land loan can help you secure the property you want today while giving you time to determine what comes next.

Ready to Explore Your Land Financing Options?

See If My Land Qualifies

Land Loans | Financing for Developed Lots & Raw Land

Land Loan Highlights

Up to 75% Financing

Raw Land Up to 65% LTV

20-Year Amortization

Up to 45% DTI

What Is a Land Loan?

Developed Lot Loans

Raw Land Loans

Developed Lot vs. Raw Land

What Does a Balloon Term Mean?

Developed Lots

Raw Land

How Much Down Payment Is Needed?

Developed Lot

Raw Land

Who Might Consider a Land Loan?

Land Loan vs. Construction Loan

Frequently Asked Questions About Land Loans

Can I finance the purchase of vacant land?

How much can I finance on a developed lot?

How much can I finance on raw land?

How much down payment do I need for a developed lot?

How much down payment do I need for raw land?

What is the loan term?

Are the payments calculated over only 3 or 5 years?

What happens when the balloon comes due?

What is the maximum debt-to-income ratio?

Can I buy land now and build later?

Is raw land treated differently from a developed lot?

Can I use this loan to build a house?

Are rates and fees competitive?

Does every piece of land qualify?

How do I know whether my property is considered developed or raw?

Own the Land. Build the Plan.