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Lot Loan Checklist: Land Purchase Financing

Land Purchase and Lot Financing Resource

Streamline your lot loan application with our comprehensive document checklist. For buyers financing vacant land or a building lot and for land lenders. Collect the purchase contract, survey and legal description, zoning and utilities evidence, appraisal items, environmental or perk tests if required, plus income and asset documents so the lender can underwrite both the parcel and the borrower.

Lot Loan Checklist: Land Purchase Financing form template preview

Key Benefits

Document survey, legal description, and access
Show zoning, utilities, and buildability
Prepare environmental or perk items when required
Gather borrower income and down-payment assets
Reduce conditions on vacant-land closings
Professional lot and land lending workflow

Common Use Cases

Buyers financing a residential building lotOwners purchasing acreage before a construction loanLand lenders underwriting vacant parcelsDevelopers buying lots for a future buildBorrowers combining a lot loan with a later construction loanAttorneys and title companies assembling land closing docs

Frequently Asked Questions

What is a lot loan?
A lot loan finances vacant land, typically a residential building lot, without a home on it yet. Rates and down payments are usually higher than a home mortgage because the collateral is raw land. Some banks offer a lot loan that later converts or is paid off by a construction loan.
What property documents do land lenders want?
Expect a survey or plat, legal description, evidence of legal access, zoning confirmation, utility availability (or well/septic plans), and sometimes a perk test or environmental screen. Title must be insurable. Restrictions and easements should be disclosed early.
How much down payment is typical?
Lot loans often require 20-50% down depending on whether the land is improved, raw, or acreage, and on the lender. Construction-ready lots in a recorded subdivision generally get better terms than raw rural land.
Can I use a lot loan and then get a construction loan?
Yes. Many borrowers buy the lot first, then originate a construction-to-permanent loan that pays off the lot loan. Tell both lenders the plan so the lot loan allows subordination or has no prepayment penalty that blocks the build.

Checklist

Application

Lot or land loan application
Required

Parcel identifiers, intended use (build vs. hold), and requested term.

Credit authorization
Required

Land programs can have stricter score and reserve overlays.

Transaction

Executed purchase contract and seller disclosures
Required

Price, legal description, and any mineral or easement reservations.

Property Documentation

Survey, plat, or legal description with access noted
Required

Shows boundaries, easements, and legal access. Lender may require a new survey.

Zoning confirmation and utility availability (or well/septic plan)
Required

Buildability support. Hookup letters or perk test if the lot is not in a developed subdivision.

Perk test, flood, or environmental items if required

Rural or raw land may need perc, wetlands, or phase I depending on lender and use.

Borrower Documentation

Income and asset documents for the borrower
Required

Pay stubs, returns, and statements for down payment. Same idea as a mortgage file.

Identity

Government-issued photo ID
Required

All borrowers. Entity buyers add formation documents.