Land building loan

I have 2 lots of land adjoining in FLorida. I have seen them, they are high and dry however covered with tree’s. When you own the land out right how do you go about getting a building loan to cut trees, dig well, spetic and house. I have no clue any and all input would be great.


There are two types of loans that you could use for this purpose. The first would be a 1X close. This would allow you to borrow the money to clear the land, dig the well, and build the house. Depending on the value of the finished home you may be able to roll in closing cost, taxes and even your payments. Typically you would use this type of loan on a house that you are planning to keep because you are paying more in the way of closing costs since you are only closing one time, then modifying to a permanent loan after construction is finished.

The second type of loan would be an interim loan. This type of loan is typically a 9-12 month loan that would allow you to get the house built, then you would sell the house after completion. This type of loan has lower closing costs because it is not a permanent loan. The property has to be either sold or refinanced at the end of the construction period.

Please keep in mind these are VERY abbreviated descriptions of the loan products, but depending on what you want to do with the completed houses, either of them should work for you. Please feel free to contact me if you need more information or have more questions. Good Luck and Happy Investing.

Hi Antoinette,

There are a number of ways of doing this project…

The three most popular are
Raw Land, Construction and construction perm.

A raw land deal is for the appraised value of the property only.
It can be followed by a construction only loan to develop the property.

Another is a land only purchase which may or may not be followed by a construction loan.

A construction Perm Loan is a single loan for the land purchase and constuction (which includes clearing the land etc.)
It would appear that your project would fit most adequately into this category.