Business funding
Land Loans
Financing to buy raw, entitled, or improved land, with or without a build planned.
General qualification guideline; lender and program requirements may vary.
Best forBuying land ahead of a build, an entitlement play, or a hold.
Overview
Financing for the ground before anything is built
A land loan funds the purchase of a lot or acreage. Lenders treat land differently from finished property because it usually produces no income and is harder to sell, so they look closely at the land itself (zoning, utilities, road access, and entitlements) and at your plan for it. Improved and entitled land is generally easier to finance than raw land, and a clear path to building or a defined hold strategy strengthens the file.
Benefits
- —Secures a site ahead of a build or development
- —Options for raw, entitled, and improved land
- —Can be structured to roll into construction financing
- —Works for residential, commercial, and investment plans
- —Lets you lock in a location while you time the build
Good for
Situations where it tends to fit
Down payment, terms, and eligible land types depend on the lender and program.
Documentation
What you will typically need
Documentation centers on the land and your plan for it:
- —Purchase contract and property details: parcel, acreage, and location
- —Survey, zoning, and utility information where available
- —Plans, permits, or a builder quote if you intend to build
- —Proof of funds for the down payment
- —Personal financial statement and tax returns
- —Government-issued ID
Qualification factors
What generally matters
- —Land type: raw, entitled, or improved
- —Zoning, utilities, and road access
- —Down payment and loan-to-value
- —Your plan and timeline for the land
- —Personal credit profile and income
- —Liquidity and reserves
Common questions
Land loans, answered plainly
Why do land loans need a bigger down payment?
Vacant land usually produces no income and is harder to sell than a finished property, so lenders take on more risk. They offset that with a larger down payment and shorter terms than a typical mortgage. Improved land with utilities and access usually gets better terms than raw land.
Can I roll a land loan into construction financing?
Often, yes. Some programs finance the land and the build together, and others let you refinance the land into a construction loan once plans and permits are ready. Tell us your timeline and we will match the structure to it.
Does it matter what I plan to do with the land?
Yes. A defined plan, whether that is building a home or a business location, an entitlement, or a long-term hold, helps the lender understand the exit and can improve the terms.
Have land in mind?
Send us the parcel, the price, and your plan for it. We will tell you whether it fits and what the financing looks like.
The guidelines on this page are general guidelines only — not guaranteed lender approval requirements. Requirements vary by lender and program. TK Capital Solutions is not a lender; all funding is subject to lender underwriting and approval.