Bank Land Loans: Funding and Developing Vacant Lots

Bank land loans designed to facilitate the purchase and development of vacant lots can be obtained by both private individuals and corporate developers. To obtain funding through a traditional banking institution, however, borrowers will need to be prepared with a number of things, including initial plans and documents related to the intended development.

Why Bank Land Loans are Preferred

Going through a traditional banking institution for financing on a vacant lot development project is generally preferred by borrowers because of terms that are generally offered. In many cases, those who qualify for standard bank financing will pay lower interest rates and receive more generous terms.

Increasing Chances for Approval

Obtaining approval for bank land loans to buy and develop vacant properties tends to be more rigorous than other options. Some of the things that can be done to increase chances for lending approval include:

  • making certain the property is approved for the intended development
  • avoiding the purchase of raw, or wholly unimproved land
  • being certain credit is in order
  • having a sizeable down payment available

Bank land loans can provide the money needed to turn a development idea into reality. Obtaining traditional bank financing, however, can be a little more difficult than pursuing other options, such as going through a non-deposit lending institution.

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