Land Loans

Land Loan Highlights

• 680+ minimum credit score

• 20% down payment minimum

• Down payment must be from the borrower’s own funds

• 6 months of reserves required

• 20-acre maximum

• $50,000 minimum loan amount

• $500,000 maximum loan amount

• 10-year term

• Fixed rate

• Call for the most accurate current rate

What Is a Land Loan?

A land loan is financing used to purchase vacant land or a residential lot. Unlike a traditional mortgage for a completed home, a land loan is used when there is no finished house on the property yet.

This type of financing may be useful if you want to:

• Buy land now and build later

• Secure a lot before construction plans are finalized

• Purchase land for a future primary residence

• Avoid paying cash for the full purchase price upfront

• Hold the property while preparing for a future construction loan

Our Land Loan Program Guidelines

Our land loan program has specific qualification requirements.

To be considered, borrowers generally need:

• Minimum credit score: 680+

• Minimum down payment: 20%

• Down payment source: borrower’s own money

• Required reserves: 6 months

• Maximum acreage: 20 acres

• Minimum loan amount: $50,000

• Maximum loan amount: $500,000

• Loan term: 10 years

• Rate type: fixed rate

Because land loan rates can change, borrowers should call for the most accurate current rate based on their specific scenario.

20% Down Payment Requirement

This land loan program requires a minimum 20% down payment.

The down payment must come from the borrower’s own funds. This is important because land loans are different from standard home loans, and lenders typically want to see that the borrower has their own money invested in the purchase.

Minimum down payment requirements are subject to verification of acceptable funds and full underwriting approval.

Credit Score and Reserve Requirements

Borrowers must have a 680+ credit score to qualify.

In addition, this program requires 6 months of reserves. Reserves are funds available after closing that show the borrower has enough financial strength to manage the loan after the purchase is complete.

Meeting the minimum credit score and reserve requirement does not guarantee approval. Final approval depends on the full loan review.

Acreage and Loan Amount Limits

This program is available for eligible land purchases up to 20 acres.

Loan amount limits are:

• Minimum loan amount: $50,000

• Maximum loan amount: $500,000

If the land purchase is outside these limits, another financing structure may need to be reviewed.

10-Year Fixed Rate Land Loan

This land loan program has a 10-year term with a fixed rate.

Because rates change based on market conditions and borrower qualifications, borrowers should call for the most accurate current rate based on their specific loan scenario.

Who a Land Loan May Be Best For

A land loan may be a good fit for borrowers who:

• Want to purchase vacant land now and build later

• Have strong credit

• Have at least 20% down from their own funds

• Have 6 months of reserves available

• Are buying 20 acres or less

• Want a fixed-rate land loan option

• Need financing between $50,000 and $500,000

Buying Land Now and Building Later

Many borrowers use a land loan to secure a lot before they are ready to begin construction.

This can be helpful if:

• You found the right piece of land but are not ready to build yet

• You are still working on house plans

• You need more time to choose a builder

• You want to hold the lot before applying for a construction loan

If you plan to build in the future, it is important to think ahead about how the land loan may fit into your future construction financing strategy.

Land Loan vs Construction Loan

A land loan and a construction loan are not the same.

A land loan helps finance the purchase of vacant land before a home is built.

A construction loan is used to finance the building of the home itself and may also be able to include the land depending on the loan structure.

If you already know you are ready to build, a construction loan may be worth comparing. If you want to buy the land first and build later, a land loan may be the better starting point.

Land Loan FAQs

What credit score is required for a land loan?

This land loan program requires a 680+ credit score.

How much down payment is required?

A minimum 20% down payment is required.

Can the down payment be gifted?

No. Under this program, the down payment must come from the borrower’s own money.

Are reserves required?

Yes. This program requires 6 months of reserves.

What is the maximum acreage?

This program allows up to 20 acres.

What is the minimum loan amount?

The minimum loan amount is $50,000.

What is the maximum loan amount?

The maximum loan amount is $500,000.

What is the term?

This land loan program has a 10-year term.

Is the rate fixed or adjustable?

This program has a fixed rate. Call for the most accurate current rate.

Can I use a land loan if I want to build later?

Yes. A land loan can be used to purchase land now while you prepare to build in the future.

Is approval guaranteed if I meet the listed requirements?

No. Meeting minimum program guidelines does not guarantee approval. Final approval depends on full underwriting review, property eligibility, collateral review, title review, and other applicable program guidelines.