Residential Land Purchase Loans
Builder Loans provides financing for the acquisition of residential land intended for future construction of a primary or secondary residence. Each program is designed to support clear acquisition goals with defined terms and structure.
Program Overview
Eligibility
- Full income and asset verification
- Minimum FICO score: 720
- 3-year balloon term
- Regular principal and interest payments
Loan Features
- Up to 75% Loan-to-Value (LTV)
- 30-year amortization schedule
- Balloon payment due at end of year 3
- Non-agricultural land only (residential use)
- Minimum Loan Amount: $800,000
- Maximum Land Size: 20 acres
Frequently Asked Questions (FAQs)
How is Loan-to-Value (LTV) determined for residential land?
LTV is based on an independent appraisal of the property. Financing can be offered up to 75% of the appraised value.
What does a 3-year balloon term mean?
Monthly payments are calculated using a 30-year amortization schedule, with the remaining principal balance due in full at the end of three years, requiring either refinancing or payoff.
Why is the financing limited to non-agricultural land?
This program is intended exclusively for residential or development purposes. Properties used primarily for agriculture or farming do not qualify.
What documentation is required for income and asset verification?
Typical documentation includes recent bank statements, income verification (such as pay stubs or tax returns), and evidence of sufficient liquid assets.
Can this financing be transitioned into construction financing later?
Yes. Borrowers may transition from land financing into a construction loan following project approval and updated underwriting review.