Lot / Land Loans

Lot / Land Loans

Raw land vs. Lots

Raw land is just land. which may or may not be suitable for development.

Lots are intended for residential development, and likely to have the following:

  1. A building permit or perhaps appropriate zoning
  2. A survey report with stakes denoting the site’s boundaries
  3. Access across public roads OR rights to access through a permanent easement
  4. Utilities on site or nearby, such as mains water, electricity and perhaps natural gas
  5. Access to a public sewer or a viable option of providing a private alternative

LOT LOANS: Borrowing for a lot is typically much easier than getting a loan for raw land. Twin River Bank will typically loan on lots for a 2 year term with interest payments monthly. The goal is for the borrower to construct a home on the lot within that 2 year timeline, get their current home sold, gather plans and bids for construction, etc.

LAND LOANS: Expect to make a bigger down payment (35 – 50 percent) and pay a higher interest rate if you want a land loan. We typically offer a HELOC to finance land loans rather than a bare land loan; however we will consider a land loan to our local borrowers who have a strong balance sheet and good cashflow to service the debt.