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.
36 months
The balloon is due after 36 months.
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.
Your required down payment depends on whether the property is considered developed or undeveloped.
With financing up to 75% LTV, a borrower would generally need at least:
25%
Equity / down payment
With financing up to 65% LTV, a borrower would generally need at least:
35%
Actual loan amounts and required funds are subject to property value and underwriting approval.
A land loan may be worth exploring if you:
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.
Straight answers on developed lots, raw land, balloon terms, down payment, and DTI. Property eligibility and terms are subject to underwriting.
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?