Land Loans for Every Property Type

Most lenders avoid land.

Raw parcels, agricultural acreage, and industrial sites tend to make traditional lenders uncomfortable. Mention undeveloped land and the conversation often ends quickly. The reality is that land loans can be difficult to place through conventional lending channels, which is why many institutions simply avoid them altogether.

But land is still a real asset with real value. Investors, developers, and property owners continue to acquire land for long-term appreciation, development, and strategic investment opportunities. Financing just requires a different approach.

Why Land Financing Is Difficult Through Conventional Lenders

Traditional lenders prefer improved properties with established income streams and predictable valuations. Raw or undeveloped land doesn’t fit neatly into that model. Without buildings, rental income, or existing improvements, banks often consider land higher risk.

That’s why many viable deals never make it past the initial conversation. The issue isn’t necessarily the property — it’s the lending model being applied to it.

An asset-focused approach changes that conversation entirely.

What Types of Land We Finance

Land investments come in many forms, and financing needs vary depending on the property and the investor’s strategy. We regularly evaluate a wide range of land types, including:

• Residential land — vacant lots intended for future home construction

• Commercial land — sites planned for retail, office, or mixed-use development

• Industrial land — parcels zoned for manufacturing, storage, or logistics

• Agricultural land — farmland, ranch properties, and working acreage

• Raw land — completely undeveloped parcels without utilities or improvements

Raw land is often where traditional lenders hesitate the most. Without improvements or income, banks frequently decline these opportunities outright. That’s exactly where asset-based lending can make sense.

Asset-Based Lending: The Property Comes First

Our evaluation starts with the property itself. Instead of focusing primarily on credit scores, tax returns, or income verification, the central question becomes whether the land supports the loan.

This asset-based approach allows many investors to pursue opportunities that conventional financing simply won’t accommodate.

Credit history is considered as part of the overall picture, but it is not the sole determining factor. In many cases, income documentation is also not required, which removes a significant barrier for investors who operate through LLCs, write off expenses, or have complex tax returns.

The focus stays where it belongs — on the value of the land and the strength of the deal.

How Land Valuation Works

Because the property itself drives the lending decision, valuation becomes extremely important.

Land loans are typically supported by a Broker Price Opinion (BPO). A BPO evaluates the property’s market value based on comparable land sales and local market conditions.

Maximum loan-to-value on land is generally up to 40% of the supported property value.

For example:

If a BPO supports a value of $500,000, the maximum loan amount could typically be up to $200,000.

This conservative loan-to-value approach reflects the nature of land as collateral. While land can hold significant value, it is generally less liquid than improved property. Maintaining a lower LTV helps keep the transaction stable for both the borrower and the lender.

Land Loan Requirement: The Property Must Have a Street Address

One practical requirement for land financing is that the property must have an assigned street address.

This allows the parcel to be clearly identified, located, and properly evaluated during the valuation process. If a parcel does not have an official address assigned, it typically cannot be considered for financing until that issue is resolved.

It’s a simple detail, but one worth confirming early in the process.

Flexible Loan Terms for Different Investment Strategies

Land investors often have very different timelines. Some properties are acquired for quick development or resale, while others are held for long-term appreciation.

Because of that, multiple loan terms are available to match different investment strategies.

Short-Term Options: 1 or 2 Years

Short-term loans work well for investors planning to develop, sell, or refinance the property within a defined timeframe. These options keep the financing aligned with a short investment horizon.

Long-Term Option: 15 Years

Some land acquisitions are strategic long-term holds. Agricultural land, acreage in growth corridors, or parcels held for future development may require more time. A longer-term option provides flexibility for investors who want to hold the asset without needing to refinance quickly.

Having both short and long-term solutions available allows the financing to align with the investor’s plan.

Investment Properties Only

Land loans through this program are designed strictly for non-owner occupied properties.

The financing is intended for investors, developers, and business owners acquiring land as part of an investment strategy. Properties intended as a primary residence are not eligible under this program.

Who Land Loans Works For

Asset-based land financing tends to make the most sense for investors in situations like these:

• Investors whose deals were declined by conventional lenders due to land type

• Buyers acquiring raw or agricultural land that banks won’t finance

• Self-employed investors with complex or difficult-to-document income

• Investors whose credit history doesn’t align with traditional lending guidelines

• Buyers who need financing aligned with a specific development or investment timeline

In each of these situations, focusing on the value of the asset rather than traditional underwriting formulas can open the door to opportunities that might otherwise be unavailable.

Evaluating Your Land Investment

Land financing doesn’t have to be a dead end. When the property itself supports the loan and the overall deal makes sense, asset-based lending can provide a practical path forward.

Every property and every investment strategy is different. The best way to determine whether a land deal fits is to review the parcel itself, understand the investor’s plan, and evaluate the opportunity from an asset perspective.

Investors considering financing for residential, commercial, agricultural, industrial, or raw land can reach out to review their scenario and determine whether the property meets the requirements for this type of land loan.