5 Best Land and Lot Loans in Arkansas


Land loans in Arkansas give borrowers an easy way to finance a lot purchase for a home or business.

Key Terms

  • Land loans let you buy in popular areas for a fraction of the cost of a home.
  • A lot loan can come with flexible payment options.
  • You don’t have to purchase insurance with land loans.

Living in The Natural State comes with a lot of benefits, thanks to its natural beauty, including over 51,993 square miles, according to the United States Census Bureau, filled with woods, trails, and even limestone caves. Arkansas also gives you a great mix of small town charm and big city living, as well as some stellar state universities. 

Buying a home is getting more complex in Arkansas, however, as it is in many parts of the country. With the value per acre in Arkansas at around $6,739, per the New Estimates of Value of Land of the United States, land loans give you a more affordable entry point to property purchases. 

You can also build a home or business on a land lot over time, giving you more control of the process and its associated costs. Land loans are an alternative to construction loans in Arkansas, which are typically given to borrowers looking to build right away. 

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What are the main benefits of a land loan in Arkansas?

Vacant land does not cost as much as finished houses, which means you can usually get a larger lot in a desirable area for a fraction of what a home in that neighborhood would cost you. 

You also have the option to start small and add to your starter home as you go, which means you can split the costs of creating your ideal home over several years while living on the property. Plus, the home you will end up with will be distinct and your own, unlike so many of the mass-produced homes going up around the country right now. 

Additionally, a lot loan in Arkansas also does not have the same insurance requirements or PMI requirements as a mortgage. That can save you some significant dollars each month and over the life of the loan. All in, a land loan can be a very cost-effective way to start the process of owning property and a home. 

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5 Best Arkansas land and lot loans

Some lenders only offer land loans for residential projects, while other programs can lend to those that are pursuing recreational or agri-business purchases.

1. Arkansas 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 reached out to Arkansas Federal Credit Union to discuss land loan details, which you can read about below:

  • One time closing product available for land/construction projects.
  • Rate lock available for up to 90 days prior to closing.

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. Farm Credit Of Western Arkansas

Farm Credit of Western Arkansas provides Farm Credit System access to those in Arkansas. This particular sector of the system offers ag loans, land loans, rural home loans, timber loans, and special loan programs to support farmers and ranchers in the state through competitively priced loans.

We reached out to Farm Credit Of Western Arkansas to discuss land loan details, which you can read about below:

  • Recreational land loans available
  • Small or unlimited acreage
  • Low down payment options
  • Fixed interest rates (rates never balloon)
  • Variable rate options
  • Long-term financing available
  • No maximum loan amount
  • No maximum acreage limitation
  • One-time closing for both land and 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. Spurr Mortgage

Spurr Mortgage was founded in 1990 to help meet the needs of the people of Oklahoma with their property purchasing needs. Spurr Mortgage offers a number of products and services, including mortgages with no and low down payments and land and lot loans at 100% financing.

We reached out to Spurr Mortgage to discuss land loan details, which you can read about below:

  • No down payment land loans
  • Minimum loan amount is $25,000
  • Maximum loan amount is $250,000
  • 15-year term amortization
  • Refinances available up to 65% loan to value
  • No commercial land
  • Property can be financed with or without utilities
  • Only finances land in Oklahoma
  • Property cannot have a residential structure on site

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.

5. Timberline Federal Credit Union

Founded in April of 1957, Timberline Federal Credit Union was created for the Crossett Paper Mills employees, it has since grown to serve all members who live and work in 10 counties throughout Arkansas. Timberline Federal Credit Union offers a number of products, including land loans with flexible terms.

To get you the best information, we contacted Timberline Federal Credit Union for more details on their land loans and here are the key features and terms:

  • Loans available for the purchase of undeveloped real estate
  • Flexible terms customized to the borrower’s situation and credit
  • Local decision-making and processing by fellow community members

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 Arkansas home land loan make sense for you?

Buying property is always complex. Whether you choose a new build that might be smaller, a fixer-upper that might take months to renovate or a land loan to buy a vacant lot to build your dream home over time, there are always pros and cons. 

If you’re not sure what would make the most financial sense for you, speak to a mortgage broker or finance company that offers all the options, and run a comparison of all your options. There are also different types of land loans out there, including raw, unimproved and improved land loans, so you have a range of options. 

A land loan will almost certainly give you the cheapest and quickest way to own property in Arkansas. You also don’t have to start your build right away, allowing you to develop your project over time and design it to your exact tastes and budget. Many find this process much more enjoyable, too, then living in a fixer-upper while renovations take place. 

Land loans do usually have higher interest rates because they are a bit riskier for finance companies. However, most offer flexible payment options and, as mentioned above, you will be saving on monthly insurance payments, too. For a land purchase, the loan process looks different than your traditional mortgage loan or home equity loan.

If you’ve already looked into refinancing, lines of credit, or other traditional home loans, you might have discovered that these don’t fit your needs for land loans. Finding a lender who supports land loans in Arkansas may be a better fit for your needs. Make sure to discuss credit score details, loan terms, the loan amount, and more by going through a loan calculator or discussing your financing options with the lender directly. Once you know all your options for real estate loans, you can explore what the monthly payments might look like with a land loan. The NMLS is a helpful research tool during this time, too, as you attempt to discover how much you need to finance.

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.

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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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