From Empty Lot to Dream Home: The Smart Way to Finance Your Build | Construction Mortgage

Have you found the perfect plot of land and thought, "I would love to build my dream home here," but weren't sure how to finance the purchase before you are ready to break ground?

Don't let the perfect spot slip away while waiting on construction plans. Raw land loans can help you secure the lot today.

We are breaking down Raw Land Loans—a specialized financing solution for clients who want to secure their lot now and start building shortly after.

Buying raw land is different from purchasing an existing property. This program is designed specifically to bridge the gap between buying the land and starting your custom home construction.

Who is this financing for? This solution is perfect for future homeowners who are ready to move fast. It is designed for those who plan to begin construction within 6 months of purchasing the land, rather than investors looking to hold empty lots long-term.

How Raw Land & Construction Loans Work Financing a custom build involves two main stages: securing the land and funding the construction. Here is how the numbers break down:

• Stage 1: The Land Loan You can finance up to 75% of the raw land purchase price. (This means you will typically need a 25% down payment for the lot itself).

• Stage 2: The Construction Mortgage Once you are ready to build, we roll the land loan into a Construction Draw Mortgage:

  • Conventional: Up to 80% Loan-to-Value (LTV).

  • High Ratio (Insured): Up to 95% Loan-to-Value (LTV).

Why this approach is smarter The main advantage here is consolidation. By planning your land acquisition with your construction financing in mind, you simplify the entire process. This consolidates the initial land purchase and the building costs into a single mortgage product as the project progresses, making it easier to manage your budget while you finalize blueprints and permits.

The Bottom Line If you have your eye on a piece of land and are ready to start building your custom home this year, you don't have to wait. We can secure the land now and set up the framework for your construction mortgage immediately.

Ready to break ground? Reply to this email or call me to run the numbers on your dream project.