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Lot and Land Loans
Build on the Right Foundation
Buying land is a big step and often the start of a long-term plan. Whether you want to build a home, open a business, or invest for the future, purchasing land gives you flexibility and opportunity. A lot loan helps make that possible by allowing you to buy property without paying all cash upfront. Unlike traditional home loans, lot loans are designed specifically for land, which means the process works a little differently. Knowing what to expect ahead of time can save you time, money, and stress.
Lot loans can be used for many types of property, from open rural land to residential lots in developed areas. Some lots already have utilities, road access, and zoning in place, while others are more undeveloped. These differences matter because they affect loan requirements, down payments, interest rates, and timelines. In general, land that is ready to build on is easier to finance than raw land, but both options can make sense depending on your goals.
Preparation plays a key role when buying land. Before moving forward, it’s important to think about how you plan to use the property and when you plan to build, if at all. Some buyers want to start construction right away, while others prefer to hold the land for future use or long-term investment. Your plans help determine which loan option fits best. With the right preparation and understanding, buying land can feel less overwhelming and more like a confident step toward your future.
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Ready to purchase some land? Let our financing experts help you with all your financing questions from competitive rates to loan duration. Let us help you become a land owner!
(801) 223-8188 | Branch Locations
Available M–F 8am–6pm, and Sat. 9am–2pm,
Flexible Loan Options
Choose loan terms that fit your plans, whether you want to build soon or hold the land for later.
Local Decision Making
Work with people who understand local land values, zoning rules, and development needs.
Clear, Upfront Costs
Know what to expect with rates, down payments, and fees before you commit.
Guidance for Every Type of Land
Buying land is different from buying a home, and those differences can impact both the loan process and your long-term plans. Some lots are ready to build on immediately, while others may need utilities, road access, or zoning approval before construction can begin. These details matter because they affect approval requirements, timelines, and overall cost. Understanding the type of land you’re purchasing helps reduce delays and avoid unexpected expenses.
Not all land is viewed the same when it comes to financing. A lot with existing infrastructure, such as water, power, and paved access, is typically easier to finance than raw or rural land. Land without these features may require additional review or a larger down payment. Knowing this early allows you to plan ahead and choose a property that aligns with your budget and expectations.
Clear guidance helps simplify the process. Reviewing land use, access, and future building plans upfront makes it easier to match the loan to how you plan to use the property. Whether you plan to build soon, hold the land, or invest long term, walking through these details early adds clarity and confidence. The goal isn’t just to secure financing, but to help you move forward with a plan that makes sense and fewer surprises along the way.
Frequently Asked Questions
What are Lot/Land Loans, and how do they differ from regular home loans?
Lot Loans are specialized for lot purchases, and they often have different qualification criteria, interest rates, and terms compared to standard home loans.
Are interest rates higher for land loans compared to home loans?
Generally, interest rates for lot loans can be higher due to the perceived higher risk associated with undeveloped or underdeveloped land.
What are the common down payment requirements for land loans?
Down payment requirements for land loans are typically around 20% of the land value.
How long are the typical terms for loans for land?
Terms for loans for land can vary, they often range from 3-5 years based on a 30 year amortization.
What are the Different Types of Loans for Land
When it comes to lot for land, there are typically two main categories: raw lot loans and developed land loans. Raw lot loans are often used for purchasing unimproved land, while developed land loans cover land with some improvements, such as utilities. Understanding these distinctions can guide your choice. At UCCU, we mostly deal with developed land loans, but if you are looking for raw land, give us a call, and we can help accommodate where possible.
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