Can I finance raw land or a vacant lot? The answert is yes. Raw land can be financed with a lot loan. Lot loans are slightly different than a “typical” loan or construction loan in that they have higher interest rates and may require larger down payments. The down payments may be 10-20% depending on credit scores and could have rates 1-2% higher than other loans.

If you will be using a lot loan to secure a piece of property you will build on, keep in mind that the lot loan will be paid off as part of the construction loan so the higher rate would be short lived.