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! 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
  • 25% Minimum Down Payment
  • Primary Residences, Second Homes or Investment Properties
  • Fully Amortizing Payments
  • Rate fixed for the first 5 years. Adjustable annually thereafter.

15-Year Loan Term

Loans up to $750,000

25% Down Payment

Frequently Asked Questions

What happens to my lot loan when I start to build?

If you're obtaining a construction loan to finance the construction of your new home then the lot loan on the property will be paid off at the closing of the construction loan. For example, if you have a $100,000 lot loan at the time of closing on your $800,000 construction loan then the lot loan would be paid off and the remaining $700,000 would be availble to fund the build.

Do I need additional Down Payment for my construction loan?

It depends on the equity you have in your lot at the time of construction. We have construction loan programs that require as little as 10% equity. For example, if you have a $100,000 lot loan balance on a lot worth $200,000 and an $800,000 contract to build a new home, the total costs needed at closing would be $900,000 ($100,000 to pay off lot + $800,000 cost-to-build) while the total value would be $1,000,000 ($200,000 lot value + $800,000 costruction value). In this example a loan of 90% of the value would be $900,000 so no additional down payment would be needed.

How long do I have before I must start construction?

You don't have to start construction within any set timeline. The loan is fully amortizing over 15 years so the balance will be zero at the end of the loan term.

Related Loan Program


Construction loans are designed to fund the construction of a new home or renovation of an existing home. They structure of a construction loan varies depending on whether you're buying a lot and obtaining a construction loan simultaneously or whether you already on the lot on which you want to build. Generally, construction loans start with a zero balance that increases over the construction period. Construction loans can be used to payoff an existing lot loan and build a home all in one transaction. Construction loans come in two common structures.