Lot loan programs are designed for the purchase of a building homesite for the eventual construction of a new home. These programs allow the owner to acquire a lot before starting the process of designing plans and drawings, interviewing builders, and obtaining appropriate approvals and permits. Lot loans can be rolled into a construction loan once the building process starts.
Lot loans typically require a down payment of 25% to 30% of the lot price and have a term of 1 to 5 years depending on the program. However, we currently offer a 15-year lot loan program with as little as 20% down! Any down payment or equity in the lot is applied toward the down payment requirement of the construction loan.
15-year lot loan details:
- Loans up to $750,000
- Purchase Transactions
- 20% Minimum Down Payment (for loans up to $350,000)
- Primary Residences, Second Homes or Investment Properties
- Fully Amortizing Payments
- Rate fixed for the first 5 years. Adjustable annually thereafter.