Our lot & land loans are designed to make it easy for you to purchase your land and close quickly with competitive rates and fees.

What is a land loan?

Land loans are mortgages placed on an empty parcel of land – meaning there is no home on the land. Capital City Home Loans land loan is offered on a 15 year term with choices of either a 3 year or 5 year fixed rate.

Many of our clients purchase the land with the intent to build before the fixed rate period ends. When they’re ready to build, we will refinance the loan into a construction-perm loan to build your new custom home.

Others choose to use our land loan to purchase up to 50 acres of land for recreational purposes.

What down-payment is required for land loans?

Lot and land loans require a minimum 20% down-payment, and higher acreages could require a larger down-payment. Land values are typically more volatile than housing values, and mortgage insurance isn’t available for land. Because of this, most lenders will require larger down-payments for land purchases than residential homes.

Capital City does not have a minimum loan amount for lot loans, and can lend up to $1,000,000 on land.

Are there any special requirements for land loans?

Sometimes. Lots in platted subdivisions with public sewer in place typically don’t require any special inspection. However, land outside of platted subdivisions can require a perc test and a survey.

Most land must have access to a paved road, but we can make exceptions in some counties for dirt roads.

Have questions?  Give me a call! I would be happy to answer all of your questions.

Let me help your purchase your new lot and get into the home of your dreams today.