Land Loans
Most lenders will not touch dirt. We have been underwriting Arizona land since 1992, and we like it when the plan is real.
- Residential land
- Up to 70% LTV
- Commercial land
- Up to 65% LTV
- Loan size
- $50Kâ$25M
- Position
- First deed of trust
- Term
- 6â24 months
Pricing is set deal by deal, on the property, the leverage and the plan. Call and we will talk about your numbers.
Find the right lot and the clock starts. Infill lots in good school districts do not wait, and neither do sellers of well-located acreage.
Then you discover what every land buyer discovers: banks do not really lend on land. No income to underwrite, no formula to apply, no loan.
We lend on land the old way, by knowing what it is worth. Which corridor it sits in, what entitlements it carries, where the utilities are, and what a finished use looks like. We have underwritten Arizona dirt for more than 30 years, from Scottsdale infill to raw acreage, and we hold land to conservative leverage.
How we size a land loan
Land is the asset class where discipline protects you as much as us. At 70 percent of value on residential land, you hold real equity, carry costs stay survivable, and a change of plans is an inconvenience instead of a crisis. We would rather fund your deal at a number that works than watch an aggressive loan take the land back.
From dirt to done
Many of our land borrowers become our construction borrowers. Buy the lot with us, and when you are ready to build, the land you own becomes the equity in the construction loan.
Call (480) 783-8800 with the parcel and your plan. You will get a straight read on value and terms from someone who knows the submarket.
Leverage above reflects our standing program ceilings. Every deal is priced on its own fundamentals. This is not a commitment to lend.
Why will banks not lend on land?
Land produces no income while you hold it, so a lender that underwrites by formula has nothing to plug in. Land has to be underwritten on judgment: location, entitlements, utilities, and the credibility of your plan. That is work a committee cannot do and a decision maker can.
What makes a land deal fundable?
A real path to use. A lot in a platted subdivision with utilities at the street is a different deal than raw acreage with no access. We price the difference instead of refusing to see it.
I want to buy the lot now and build later. Is that two loans?
It can be one relationship. We fund the lot purchase, and when your plans and builder are ready, we talk about construction financing. Owning your land free and clear sets up the strongest construction structure we offer.
$3,715,000 Land Deal in Scottsdale, AZ
A funded Kenwood deal.