Specialty Lending
A land loan is used to finance the purchase of a piece of land — whether you're planning to build a home on it soon, hold it as an investment, or secure a lot in a desirable area before prices rise. Land loans work differently from home mortgages, so it's important to go in with a clear plan.
Land is considered a higher-risk asset than an existing home, which means lenders typically require a larger down payment and stronger reserves.
The type of land matters — improved lots (with utilities and road access) are easier to finance than raw, undeveloped acreage.
Having a clear plan for the land — whether you're building soon, holding it, or developing it — helps lenders understand the loan.
Generally, yes. Land doesn't produce income and isn't as easy to sell as a house, so lenders view it as higher risk. That typically means a larger down payment and stronger financial profile is needed.
Yes, though lenders will want to understand your intended use. A hold strategy is possible, but terms tend to be more conservative the longer and less defined the plan is.
In some cases, yes. Planning ahead for a land-to-construction path can make the transition smoother — especially if you structure the initial purchase with that future step in mind.