Skip to main content

What Are Lot Loans?

A Rural 1st loan officer with a couple in a rural field.

You’re likely familiar with traditional mortgages used to purchase a home, but have you ever heard of a lot loan mortgage? These loans can help finance the purchase of a plot of land and they have several unique features that make them a great option if you’re looking to build in the future.

One of the great things about lot loans are the rates we offer. At Rural 1st, we base your loan terms on how much you want to put down—for example, we offer a 15-year term with as little as 15% down*. And since there are no balloons or floating interest, your payments will remain constant throughout the entire term. This makes lot loans a predictable and straightforward option.

Another great feature of these loans is that they can also be used to finance property improvements such as barns, water, roads, electricity and so on. We can include the cost of improvements in new lot loans or do a second loan to finance the improvements if you already have a lot loan.

Interested in learning more about how we can make a lot loan work for you? Reach out to our team today.

*A $200,000 loan would require a 15% down payment with a monthly principal and interest payment of $1,381.35 for 360 months based on 7.70% annual percentage rate (APR). Assumes $6,293 in closing costs. Monthly payments do not include amounts for taxes and insurance premiums so the actual monthly payment will be greater if an escrow account is established. Available rates and terms including the APR are subject to change without notice. The APR is based on the best available interest rate as of 06/03/2024.

Explore Your Options

Get Started

One of our loan officers will contact you to discuss your financial options.

Inquire Now

Start Your Application

Ready to get started on your loan application? You can complete your application online.

Apply Now

Contact Us

Have questions? You can find what you need on our support page.

Go to Support