A land loan, also known as a lot loan, is used to fund the acquisition of a parcel of land for residential or commercial development. The type of lot financed ranges from raw land to completely built parcels. A land loan, unlike a short-term construction loan, does not require you to be building ready.
Land loans offer an alternative road to homeownership for borrowers who do not want to buy an existing property. They also allow entrepreneurs to expand or start a business on land they own wholly, rather than pursuing a ground lease.
PERSONAL FUNDING | TIER:6
lAND FINANCING
bank of america
HIGHLIGHTS
-Flexibility + Closing Assistance
Recommended Credit
660 - 850 (Fair - Excellent)
Minimum Down Payment - 5%
LOAN TYPES
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA
REPORTS TO:
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ALL BUREAUS
TERMS:
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PERSONAL HOME LOAN
Bank of America, one of the country’s largest mortgage lenders, offers a wide range of purchase and refinance loans, including fixed- and adjustable-rate mortgages in a variety of term lengths. It specializes in jumbo loans for high-value properties and also issues government-backed mortgage products such as FHA and VA loans. The lender also offers specialty mortgages for doctors whose student debt might make it challenging to qualify for a traditional home loan early in their careers.
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lAND FINANCING
navy federal
HIGHLIGHTS
-Flexibility + Down Payment
Recommended Credit
640 - 850 (Fair - Excellent)
Minimum Down Payment - 0%
LOAN TYPES
Purchase, Refinance, Jumbo, Fixed, Adjustable, VA, Home Equity
REPORTS TO:
-
ALL BUREAUS
TERMS:
-
PERSONAL HOME LOAN
Navy Federal Credit Union is one of the top three originators of VA loans in the country by volume, according to the latest federal data. However, Navy Federal differentiates itself from other specialist lenders by offering tailored loans beyond its core VA product, including alternative loans for military borrowers who have exhausted their VA loan benefit, as well as loan options for civilian borrowers.
PERSONAL FUNDING | TIER:6
LAND FINANCING
wells fargo
HIGHLIGHTS
-Flexibility + Down Payment
Recommended Credit
620 - 850 (Fair - Excellent)
Minimum Down Payment - 3%
LOAN TYPES
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
REPORTS TO:
-
ALL BUREAUS
TERMS:
-
PERSONAL HOME LOAN
Wells Fargo has an impressively wide selection of mortgage products — including conventional loans for manufactured homes and ITIN loans — and offers easy-to-view sample rates. Its mortgage rates also tend to be lower than competitors’. However, it doesn’t offer home equity products, and it lends mainly to Wells Fargo bank and wealth management customers, and borrowers in some minority communities.
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LAND FINANCING
jp morgan chase
HIGHLIGHTS
-Flexibility + Down Payment
Recommended Credit
620 - 850 (Fair - Excellent)
Minimum Down Payment - 3%
LOAN TYPES
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA
REPORTS TO:
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ALL BUREAUS
TERMS:
-
PERSONAL HOME LOAN
Chase stands out for their low-down-payment mortgage options, including two proprietary low-down-payment loans called DreaMaker and Standard Agency. They also offer the ability to customize a rate estimate without contacting the lender, streamlining the process of comparing rates. However, borrowers won’t be able to apply without getting prequalified first, and the lender’s origination fees tend to be higher than competitors’.
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LAND FINANCING
pennymac
HIGHLIGHTS
-Flexibility + Rates
Recommended Credit
620 - 850 (Fair - Excellent)
Minimum Down Payment - 3%
LOAN TYPES
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity
REPORTS TO:
-
ALL BUREAUS
TERMS:
-
PERSONAL HOME LOAN
Pennymac excels in government-backed mortgages, including FHA loans, and makes it easy to shop for customized mortgage rates online. But average origination fees are higher than most lenders’, and it does not offer home equity lines of credit.
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LAND FINANCING
LIGHTSTREAM
HIGHLIGHTS
-Flexibility + Rates
Recommended Credit
670 - 850 (Fair - Excellent)
Minimum Down Payment - 0%
LOAN TYPES
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity
REPORTS TO:
-
ALL BUREAUS
TERMS:
-
PERSONAL LAND LOAN
Most banks do not finance the acquisition of undeveloped land. LightStream, on the other hand, plans to fund land. You have control over the lending procedure using LightStream. You select your funding date. You can even have dollars deposited in your account the same day you apply. Get a $0 down, no-hassle loan with no fees and no home equity requirements. There are no prepayment penalties or fees associated with the unsecured LightStream loan. There are also no appraisals.
