Land Acquisition & Development Financing (A&D)
Comprehensive land acquisition and development financing designed for residential projects including subdivisions, multifamily developments, and master-planned communities. Programs provide tailored structures for experienced developers, land bankers, and builder loan applicants, supporting scalability and long-term project success.
Program Overview
Eligibility & Guidelines
- Land must be fully or partially entitled
- Project sizes from $10 million to $100 million
- Minimum land purchase price: $1 million
- Developer must demonstrate relevant experience within the past 5 years
- Projects under $3 million require personal guarantees; larger projects may qualify for non-recourse financing
Loan Features
- Up to 70% Loan-to-Cost (LTC)
- Up to 60% Loan-to-Value (LTV)
- Interest-only payments on drawn funds
- Revolving and term financing options available
- 3-year development-to-construction term
- Financing available for land banking and pre-sold lot structures
- Minimum loan amount: $800,000
Frequently Asked Questions (FAQs)
What does partially entitled land mean?
Partially entitled land has received some, but not all, required local approvals or permits for development.
What qualifies as relevant experience for developers?
Relevant experience refers to successfully completed residential or land development projects within the past five years.
What is land banking financing?
Land banking financing enables developers or investors to acquire and hold land for future development or sale, often structured as revolving credit lines or term loans.
Are pre-sold lots required for financing approval?
Pre-sold lots are not mandatory but may improve project feasibility and underwriting strength.