Lot loans up to 80% LTV
Improved residential lots in established markets can finance up to 80% loan-to-value with strong borrower credit, similar to a standard mortgage down payment.
Texas land and lot loans.
Finance the lot, raw land, or rural acreage you’ll build on. Lot loans for ready-to-build sites, land loans for raw acreage.
- Improved lots and raw land
- Construction-perm available
- Rural Texas acreage OK
Three categories of Texas land financing.
A land loan finances the purchase of vacant land. Lenders categorize land into three buckets: improved (lot) loans for sites with utilities and road access ready to build on; unimproved land where some utilities are present but the parcel isn’t fully build-ready; and raw land with no improvements. Down payments and rates climb as you move from improved to raw because there’s no structure to secure the loan and the resale market for vacant land is thinner. Loan terms are typically shorter than residential mortgages — 3, 5, 10, or 15 years — and lot loans frequently convert into construction loans when the borrower is ready to build.
How a land loan goes from inquiry to close.
- 01
Identify the property and classify it
We confirm the parcel category — improved lot, unimproved, or raw land — and the intended use (build a primary residence, hold for future build, recreational, agricultural). The category drives the loan structure.
- 02
Survey and title work
A current survey and a clean title commitment are required. Boundary disputes, easements, and access issues come up more often on rural Texas parcels than on suburban lots — we work title issues early.
- 03
Lender evaluates use case and zoning
Lender reviews the parcel, zoning / deed restrictions, and intended use. Lot loans for residential build are the cleanest path; recreational or agricultural use cases are case-by-case.
- 04
Closing
Standard real-estate close with title transfer. You take ownership of the land subject to the lender’s lien.
- 05
Hold or convert to construction
Either hold the loan as a stand-alone land note (typical 3–15 year term) or, when you’re ready to build, refinance into a construction-to-perm loan that pays off the land note and funds the build.
Built for Texas families buying their build site.
A lot in the Hill Country, an acre in Prosper, or a wooded parcel in East Texas isn’t financed like a house — and most retail mortgage shops don’t actively quote land. We work land loans regularly: residential lots in master-planned communities, raw acreage for ranch property, and the conversion path into a construction-perm when our borrowers are ready to build. The two questions we answer up front: what is this land actually worth, and what is the realistic build timeline?
A land loan is the right tool when:
- You are buying a residential lot to build on now or in the next few years
- You are buying Hill Country acreage for a future custom home
- You are buying a North Texas suburban lot in Prosper, Celina, Aubrey, Pilot Point, or similar growth markets
- You are buying agricultural or recreational raw land
- You are land-banking for a future build or development
Why working with a land-savvy broker matters.
Construction-to-perm option
When you’re ready to build, we refinance the land loan into a construction-to-perm structure — paying off the land note and funding the build in one transaction.
Rural Texas land OK
Raw acreage, recreational property, and agricultural-use land have a path here. Down payments are higher and terms are different, but the deal is doable.
Survey and title handled
We coordinate the survey, title commitment, and access verification — common land-loan pinch points — so the file moves on schedule.
Multiple loan terms
3-, 5-, 10-, and 15-year fixed terms are common. Shorter terms when you plan to build soon; longer terms when you’re holding the lot for the future.
20–50%
Typical down payment
Land loan questions, answered.
What is the difference between a lot loan and a land loan?
In practice, lenders use "lot loan" for improved residential parcels — utilities at the curb, paved road access, in a recognized subdivision or master-planned community — and "land loan" for unimproved or raw parcels. Lot loans get the best terms (highest LTV, lowest down) because they’re closest to a buildable home site. Raw land sits at the other end of the range.
Why are down payments higher on land?
Vacant land is harder to value, harder to resell, and has no structure for the lender to secure against. That risk premium shows up as a higher down payment requirement — typically 20% on improved lots and 30–50% on unimproved or raw land. Strong-credit borrowers and well-located parcels get the better end of those ranges.
Can I roll my land loan into a construction loan when I build?
Yes. When you’re ready to build, the typical path is a construction-to-perm loan that pays off the existing land note and funds the construction. Your lot equity counts toward the construction loan’s down-payment requirement, which often means little or no additional cash to convert.
Do you finance raw or agricultural land?
Yes — with the caveats that down payments are higher (typically 30–50%), terms are shorter, and the use case has to make sense to the lender. Recreational and agricultural land, hunting property, and ranch land all have a path; the file gets reviewed parcel-by-parcel.
How long are land loan terms?
3-, 5-, 10-, and 15-year fixed terms are common, often with a balloon at the end of the shorter terms. The right term depends on how soon you plan to build or sell. If you’re building inside two years, a 5-year note often makes sense; if you’re holding longer, a 10- or 15-year term smooths the carrying cost.
What about utilities and road access?
Lenders care about access — paved or all-weather road, recorded easements where private — and about whether utilities (water, sewer or septic, electricity) are at or reachable to the parcel. Parcels missing access or utilities aren’t disqualified, but the loan structure adjusts (lower LTV, higher rate). We address these on the front end so there are no surprises in underwriting.
Buying land to build in Texas?
Land loan requirements at a glance.
- 700+ FICO typical for best terms
- 20–50% down depending on improvement category
- Current survey and clean title commitment
- Zoning / deed-restriction verification consistent with intended use
- Realistic build or hold timeline
- Texas property
- Owner-occupied (build site) or investment use both eligible
Lot Loan vs Unimproved Land vs Raw Land vs Construction-Perm.
| Down % | Typical term | LTV | Best for | |
|---|---|---|---|---|
| Lot Loan (improved) | 20% | 5–15 yrs | Up to 80% | Residential lots in subdivisions / master-planned communities |
| Unimproved Land | 25–35% | 5–10 yrs | 65–75% | Parcels with partial utilities or access work needed |
| Raw Land | 30–50% | 3–10 yrs | 50–70% | Recreational, agricultural, or hold-for-future-build acreage |
| Construction-to-Perm | 10–25% | 30 yrs (after conversion) | Up to 90%+ | Borrowers ready to build now — pays off land + funds construction |
Ready to move on a Land Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
New Construction
Construction-to-perm financing when you’re ready to build on the land you bought.
Learn moreConstruction & Renovation
Buy a property and roll renovation costs into one loan — useful when the parcel comes with a structure.
Learn moreConventional Loans
Standard conventional financing for completed homes — the natural endpoint after a construction-to-perm conversion.
Learn more