Raw land vs. Lots

Raw land is just land. which may or may not be suitable for development.

Lots are intended for residential development, and likely to have the following:

  1. A building permit or perhaps appropriate zoning
  2. A survey report with stakes denoting the site’s boundaries
  3. Access across public roads OR rights to access through a permanent easement
  4. Utilities on site or nearby, such as mains water, electricity and perhaps natural gas
  5. Access to a public sewer or a viable option of providing a private alternative

LOT LOANS: Borrowing for a lot is typically much easier than getting a loan for raw land. Twin River Bank will typically loan on lots for a 2 year term with interest payments monthly. The goal is for the borrower to construct a home on the lot within that 2 year timeline, get their current home sold, gather plans and bids for construction, etc.

LAND LOANS: Expect to make a bigger down payment (35 – 50 percent) and pay a higher interest rate if you want a land loan. We typically offer a HELOC to finance land loans rather than a bare land loan; however we will consider a land loan to our local borrowers who have a strong balance sheet and good cashflow to service the debt.