What you need to know about Lot / Land Loans:

  • A lot loan is a temporary loan and it will be paid off when your construction loan funds.
  • Lenders can offer programs that will do up to 80% of the purchase price of the land. Factors that they consider are location, type of land, zoning conformance, client’s intentions.
  • Lenders look to see how well the subject property conforms in zoning to its surrounding neighborhood. It is the client’s responsibility to do the due diligence necessary to determine if the site is buildable.
  • Vineyards, orchards and other agricultural types of properties are highly specialized loans. We do have some lenders who specialize in those types of properties.
  • Loan terms vary from a few months up to 5 years. Loan payments can be either interest only or they can be set up as a short term balloon loan with amortization periods ranging from 3 to 20 years.

Funding is available through both institutional and private sources.  We can also give you some additional suggestions for funding if you find a piece of property you like.