Land Loan

A land loan is a financial product used to purchase land for the purpose of building a home or other structure.

What Is A Land Loan?

A land loan is a specific type of mortgage that is used to finance the purchase of a piece of raw land with no improvements on it. These loans are typically used by individuals or companies that are looking to build a new home or develop the land in some way. Land loans typically have a higher interest rate and require a larger down payment than traditional mortgages, as the lender is taking on more risk due to the lack of a physical structure on the property. These loans typically have a shorter repayment period and may require the borrower to begin making payments on the loan before construction on the property is complete.

The Benefits of Land Loans

Allows for ownership of land
Can be used for investment or development
Offers potential for appreciation
Potential for tax benefits

Who Should Consider a Land Loan?

Individuals looking to purchase land for development or investment
Landowners looking to refinance existing land mortgages
Agricultural businesses looking to expand operations or purchase land for farming purposes (exclusions may apply)

Eligibility Guide