Residential Land & Lot Loans

Owning land is part of the American dream. Whether you've always dreamed of being a landowner or came across a great deal on a property and just started considering the idea, at First Bank & Trust, we offer lot and land loans to help make your dream a reality.  

Now is a great time to build, and our affordable financing and payment options offer the flexibility you need to become a landowner with ease.  


What is a land loan?

A residential lot or land loan allows you to purchase the land you've always dreamed of. Our team is here to make the process as easy as possible so you can secure the proper loan for your purchase.


Land loan vs. home loan

Both purchasing land and buying a home allow you to own a piece of property, but the financing process is a bit different. Here are some of the most significant differentiating factors between a land loan and a mortgage loan. 


Home loan Land loan


Purchase a home that is already built or is being developed by a construction company, usually in a neighborhood

Buy property with the goal of building a home or to hold onto the land


Rates are lower because there’s less risk involved because the home is used collateral 

Interest rates are higher as there’s more risk involved because a home can't be used as collateral


Your loan term usually ranges between 15-30 years to make owning your home more affordable

Your land loan is generally for a shorter period of time if the ultimate goal is to take out a traditional mortgage once construction is complete. Terms may be longer for non-residential land purchases.

Overall costs

Lenders often require private mortgage insurance if your down payment is less than 20%

Homeowners insurance is expected

You don’t have to pay private mortgage insurance

There is no property insurance requirement or expectation


Residential Land & Lot Loan Resources

The more information you have, the better. If you're ready to start building your dream home from the ground up, start with a few tools to guide you to your destination.


Land loan tools & calculators

Calculate your monthly payment

Compare loan options

Apply for a land loan


Other financing resources

Check out our construction loans

Watch this video on applying for a loan


Frequently asked questions about lot and land loans

Additional Lending & Banking Options With First Bank & Trust

Having a go-to team to turn to for all of your investment and lending needs is possible at First Bank & Trust. We are committed to providing you with the loans and funding options you need to live your best life.


Residential Construction Loans

Once you buy land for your dream home, the next step is to build it. We offer a variety of residential construction loans designed to be very easy to use. With construction-permanent loans, you can avoid closing costs and origination fees in a loan that fits your budget.

Learn More


Checking & Savings Accounts

Get your financial future in place with a new checking or savings account. Our team can open a new account with a variety of tools and features that fits your lifestyle. We offer free traditional checking to keep costs affordable, too.

Learn More


Personal Investments

First Bank & Trust offers in-house financial planning that can help you establish the investment accounts you need to build a bigger future. Choose just the services that fit your goals or let our team offer some key recommendations for you.

Learn More


Get Started With Your Residential Land & Lot Loan

We're committed to helping our customers through ever step of the lending process.  Contact us at 866-285-2239 to get started or start your online application today. 

Apply for a Loan

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