Land and lot financing
Land Loans
Capital for builders banking lots and investors developing land.
Land is harder to finance than a building because it does not pay rent. Lenders lean on leverage, the exit, and how far the dirt is from being buildable. Infill lots and entitled parcels price and close differently than raw acreage.
Published ranges are 50% to 65% of value, rates of 12% to 14%, terms of 6 to 12 months, no prepayment penalty and no exit fee on the programs we place most often. Average closing is about 17 days once the file is complete.
Eligible property
- Infill lot
- Entitled land
- Unentitled acreage
- Commercial pad site
Figures
- Max LTV
- 50%–65% LTV
- Interest rate
- Rates 12%–14%
- Average closing
- ~17 days
- Term
- 6–12 months
- Prepayment
- No prepayment penalty
- Exit fee
- None
Questions on this program
Sometimes, at the lower end of the leverage range, and only with an exit that does not depend on entitlements appearing later. Finished or entitled lots are the files that move.