Lot & Land Loans in Texas

Buying land in Texas is a smart way to secure your future home site or investment opportunity — but land financing works differently than a traditional mortgage. Whether you’re purchasing a residential lot, acreage in the country, or preparing to build a custom home, I offer tailored financing solutions to help you achieve your goals.

I specialize in lot loans, land loans, and land + construction financing across North Texas and surrounding areas.

What Is a Lot or Land Loan?

A Lot or Land Loan is used to finance the purchase of:

• Residential lots in platted subdivisions
• Acreage or rural land for future building
• Unimproved or raw land without utilities
• Improved lots with utilities, roads, and site prep

The type of loan and approval requirements depend on the land’s characteristics, location, and intended use.

Types of Land Financing Available

1. Lot Loans (Improved Residential Lots)

• Ideal for platted lots in established subdivisions
• Road access and utilities typically available
• Lower down payments and better rates than raw land

2. Land Loans (Unimproved or Raw Land)

• Used for acreage, rural parcels, or undeveloped property
• Requires larger down payment (due to higher risk)
• Flexible use — hold for investment, build later, or develop

3. Lot + Construction Combination Loans

• Finance the land purchase and future home construction
• One loan package → lower closing costs
• Ideal for custom homes and build-on-your-lot projects

4. Land Refinance Options

• Refinance a higher-rate land loan into better terms
• Use land equity toward a construction loan

Lot & Land Loan Requirements

Lot and land loans typically have different approval criteria than home mortgages. Common requirements include:

Down Payment

• Lot Loans: Usually 10%–20% down
• Land Loans: Often 20%–35% down
• Raw Land: May require 30%–50% down depending on utilities and access

Credit Score

• Typically 660–700+ credit score depending on loan type

Debt-to-Income Ratio (DTI)

• Generally 45% or lower

Land Characteristics

Lenders consider:

• Road access (paved or gravel)
• Availability of water, sewer, or septic
• Electric access
• Zoning and use restrictions
• Survey availability

The more improved the land is, the more favorable the terms.

What Lenders Look For

A few key questions determine the type of loan:

• Is the property ready for utilities?
• Is the land inside or outside city limits?
• Will the buyer build immediately or hold it?
• Is it accessible by a public road?
• Does the parcel meet local zoning requirements?

I’ll help you evaluate the land to ensure you get the right loan for your situation.

Lot & Land Loan Advantages

• Secure your future home site now
• Build when you’re ready — no rush
• Potential for land appreciation
• Ability to pair with a construction loan later
• Flexible purchase opportunities in high-growth Texas markets

Lot & Land Loan Considerations

• Higher down payments than traditional mortgages
• Shorter loan terms (often 3, 5, or 10 years)
• Interest rates higher than home mortgages
• Raw land has stricter requirements
• Utility access heavily impacts approval and value

I help borrowers avoid common pitfalls by reviewing zoning, setbacks, soil tests, restrictions, and utility access early in the process.

Lot/Land Loans vs. Construction Loans

If you’re planning to build soon, it may be better to combine land financing with a construction loan. This gives you:

• One set of closing costs
• Better long-term financing structure
• Ability to use land equity toward your construction loan

If you’re buying land to hold, a stand-alone lot/land loan may be the best option.

Considering Land in North Texas?

I work frequently with buyers, builders, and land developers throughout:

• Prosper
• Celina
• Gunter
• Aubrey
• Sanger
• Van Alstyne
• Melissa
• Howe
• Denison
• Sherman
• Pilot Point
• Rural Collin & Grayson Counties

I can help you evaluate parcels, review restrictions, and determine the best loan structure based on your goals.

Start Your Lot/Land Loan Pre-Approval

No matter where you’re buying in Texas — from a subdivision lot to dozens of acres — I’ll help you structure the land financing properly so you can buy with confidence.

Apply Online:
https://wayne-wallace.com/apply

Schedule a Call:
Schedule a 30-Minute Consultation

Let’s make your land purchase simple, strategic, and successful.