4 Best Land and Lot Loans in Arizona


Land loans give Arizonans a convenient way to make their dream home happen or purchase land for business or recreational purposes.

Key Terms

  • Purchasing land with a land loan is a great way to establish a location in an expensive area.
  • A lot loan doesn’t require that you pay insurance.
  • Land loans, sometimes called lot loans, let you build your home on your own schedule.

The Grand Canyon is indeed one of the most stunning sights in the world, let alone the Southwest, but Arizona has so much more to offer on top of this natural wonder. Across what is— according to the U.S. Census Bureau— 113,653 square miles of land, Arizonans can experience any one of a number of landscapes, creating a uniquely Southwestern lifestyle. 

Given the relatively large size of Arizona in comparison to some other states, Arizonans have a lot of options when it comes to getting land. One approach to homeownership is to buy a parcel of land with a land loan and build a home over time. Per the New Estimates of Value of Land of the United States, the value per acre of land in Arizona is $4328.23. That means that Arizonans looking to buy land now and build later can do so at an affordable rate.

While construction loans in Arizona are for financing a new home build, a land loan lets you secure the land you want, then build when you want. 

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How land and lot loans work in Arizona

How do lot loans work? They are essentially financing for purchasing the land for a home or business. They have no requirements as to how you use the land. In other words, if you are not going to build your vacation home for another few years, you can purchase the parcel and then leave it be, until you are ready.

Land loans sometimes require a large down payment; however, since the cost per acre for land in Arizona is relatively low, many Arizonans may find that down payment manageable. These loans sometimes have higher interest rates, too, but you can save money over the life of the loan since they do not require that you buy any insurance. 

For some borrowers, this is the best way to them to finance real estate once they identify a piece a land they like on the NMLS. They can then look into other options for home loans, but may realize that a variety of details vary between home loans and land loans, including loan rates, the loan amount available, the loan term, the monthly payment, and even credit score requirements. Whether you’re a first-time buyer or an experienced investment property owner, you should always look into all options outside of a mortgage loan, hard money loan, usda loan, va loan, or line of credit when you want to buy land.

You may discover that you can get a piece of land such as vacant land more easily with an alternative loan. Verify your eligibility with a variety of land loan providers before going forward with the loan application process.

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4 Best Arizona land loan lenders

If you’re in the market to purchase land in Arizona, consider these land loan lenders that are available for projects in the state.

1. America First Credit Union

American First Credit Union was started in 1939 in Salt Lake City, Utah which provides a number of loan products for construction. American First Credit Union offers products like lot loans, contractor built loans, self built loans, and construction loans to help people in the area to be able to build homes.

We reached out to America First Credit Union to discuss land loan details, which you can read about below:

  • 10-year fully amortizing
  • 20-year amortization with a five-year balloon
  • 30-year amortization with a five-year balloon
  • Up to 80% for purchase on fully improved residential lot where future owner-occupied home is to be considered.
  • Up to 65% for purchase or refinance on fully improved residential lot held for investment
  • Up to 50% for cash-out refinance on fully improved residential lot where future owner-occupied home is to be constructed. Maximum cash amount is $25,000
  • Lot must be free of structures
  • Origination is 1.00%
  • Appraisal: $400 (varies based on area)
  • Purchase contract (if applicable)
  • Most recent pay stubs and W2’s for previous two years
  • Tax returns if self-employed
  • Two month’s financial institution account statements

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

2. Arizona Federal Credit Union

Started in 1936 and based in Phoenix, Arizona, Arizona Federal Credit Union is locally owned and a not for profit cooperative. Arizona Federal Credit Union offers products that can be used for lots that aren’t construction ready, as well as renovation loans.

We contacted Arizona Federal Credit Union to discuss land loan program details, which you can read about below:

  • One-time close
  • Adjustable rate loans with an initial fixed rate period of up to 10 years.
  • Local decision making and draw disbursement approval.
  • Can help with lot loans if you’ve found property but aren’t ready for construction.

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

3. Mountain America Credit Union

Opening in the 1930s, Mountain America Credit Union started serving the people of Utah by providing a number of banking services to help meet their customers’’ needs. Mountain America Credit Union offers a number of products to help customers meet their goals, including lot loans and land loans.

We reached out to Mountain America Credit Union to discuss land loan details, which you can read about below:

  • Available for land purchases whether you plan to immediately build or want to build at a later date
  • Construction loans available
  • Up to 85% financing on approved credit
  • Fully amortizing fixed-rate and balloon options
  • Easy online application process

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

4. Citizens Bank & Trust

Based in North Alabama, Citizens Bank & Trust provides a number of services for those living in the area and looking to invest in property. Citizens Bank & Trust offers land loans and construction loans to help with the purchase of property as well as the building on property.

We reached out to Citizens Bank & Trust to discuss land loan details, which you can read about below:

  • Available for home construction or land
  • Available for primary residence or secondary home construction
  • Draw system: funds can be disbursed in stages as construction progresses
  • May roll into permanent loan, saving on closing costs
  • Local decision-making and processing

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

Does an Arizona home land loan make sense for you?

What kind of home are you looking to build? If you want a residence that you can move into immediately, a land loan might not make sense. A land loan is best for those who can take their time with a project or who are building second or vacation homes. 

You also need to consider what type of lot you are interested in and how developed or undeveloped it is. There are many acres of undeveloped land in Arizona, meaning that these acres don’t include key infrastructure needed for residences. In those cases, you would need a raw land loan and then would need to put in the work to optimize the location for a home. There are also many, many residential lots that are “on the grid” and built out in preparation for a build. Keep that in mind as you start looking around at land and considering a lot loan. 

If you’re looking to explore land and lot loans in other states, check out our national overview of land loans as a starting point in your search.

Find a Land Loan Specialist

Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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