A land loan is used to finance the purchase of a tract of land. These loans are available to buy bare land in the country or a lot located in a small town. Even if you plan to build a future home on the property, in most cases, water, well and septic aren’t required at time of financing. Both fixed-rate and fixed-to-adjustable interest rates are available with a variety of repayment options.
Maximum Number of Acres:
No Limit
Maximum Loan Amount:
$3,000,000.00
Minumum Loan Amount:
$50,000.00
Maximum Loan to Value (LTV):
80.0%
Maximum Debt to Income (DTI):
43.0%
Minimum Fico Score:
645
If you plan to build on the land you’re buying, you may want to consider a One-step Construction Loan. With this convenient loan, you can buy land and build with one loan, one set of fees and one closing. Timelines for building are flexible with multiple interest rate and payment options available.
Unimproved land can require a substantially higher down payment than improved land. Construction on unimproved land often takes longer; you will likely have to do more clearing for utilities and roadway access.
Improved land: Land that has access to things like roads, electricity and water.
Unimproved land: Raw land that doesn’t have access to these services. It needs to be inspected and can support things like a septic tank or be able to reach certain public utilities.