Land Acquisition Loans
A land acquisition loan finances the purchase of a lot or raw land for investment or future development. Kala Lending LLC shops land financing across multiple lenders for investors and builders.
Types of Land
- Raw land: undeveloped land without utilities or road access in place
- Improved lots: land with access and utilities available
- Lots ready for development: land with the approvals needed to build
How Land Loans Differ
Land does not produce rental income, so lenders treat it as higher risk than a rental property. Expect a larger down payment and shorter terms than a rental property loan. Terms depend on the land’s condition, its location, and your plans for it. Many investors pair a land loan with a new construction loan when they are ready to build.
What Lenders Typically Look For
- Purchase contract: the price and closing date
- Value: an appraisal or other valuation of the land
- Zoning and access: what the land can be used for and how it is reached
- Your plans: holding, developing, or selling
- Down payment and reserves: your own money in the deal
- Experience: your track record with land or development
Frequently Asked Questions
Can I finance raw land? Some lenders do, usually with a larger down payment than for improved lots.
Can I combine land and construction financing? Some programs finance the lot purchase as part of a construction loan.
Can I buy land in an LLC? Often yes, depending on the lender. Guarantor requirements vary.
Run Your Land Scenario
Contact Kala Lending or submit your deal.
Kala Lending LLC is a mortgage broker and not a direct lender. Loans are offered through third-party lenders. Loans are for business or investment purposes only and are not for personal, family, or household use. All loans are subject to underwriting approval. Rates, terms, leverage, and availability vary by lender, borrower, property, and state. This is not a commitment to lend or a rate quote.
Related pages: New Construction Loans | Bridge Loans | All Loan Programs