What Is a Land Loan?
A Land Loan is a short-term, asset-based loan used to finance the purchase or refinance of raw, undeveloped, or entitled land — often in preparation for future development, resale, or construction.
These loans are considered higher risk than other real estate loans because land typically does not generate income and can be harder to resell, so the terms are more conservative.
A land loan is used to:
Acquire land for future development or investment
Refinance land you already own to pull cash out
Secure a site before construction or entitlement
Typical Requirements
Purchase contract or current deed
Land survey and plat
Zoning verification or entitlements
Exit strategy (sell, build, or refinance)
Environmental or feasibility report (in some cases)
Experience with land development is a plus
Types of Land Financed
Raw land: Unimproved, no utilities or infrastructure
Infill lots: Platted lots in urban areas
Entitled land: Has development rights (permits, zoning)
Agricultural land: Zoned for farming or future development
Commercial land: Zoned for retail, office, industrial use
Ideal Borrowers
Builders and developers looking to secure lots before construction
Investors flipping entitled land or parcels
Landowners looking to cash out equity
Real estate professionals assembling sites for a project
Common Exit Strategies
Sell to another builder or developer
Refinance into a construction loan
Hold for appreciation or land banking
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type of loans
FIX & FLIP LOAN
Rental property funding based on cash flow, not personal income.
DSCR LOAN
Rental property funding based on cash flow, not personal income.
NEW CONSTRUCTION LOAN
Break ground with confidence.
COMMERCIAL LOAN
For a larger deals and portfolio expansion
LAND LOAN
A land loan finances undeveloped land for future use.
CASH-OUT REFINANCE
Access home equity and get cash in hand
R. Wright Consulting
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