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 | |
|
Purpose |
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 |
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 |
|
Term |
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
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.
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.
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.
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.
