6 Best Land and Lot Loans in Colorado


Colorado land loans give you a way to finance land and build a home over time, or use the land for recreational or business purposes.

Key Terms

  • Land loans allow you to buy in areas where you might not be able to afford a new or built home.
  • Land loans, aka lot loans, have no restrictions on when you build on a property.
  • These loans don’t require monthly insurance payments.

Mountain living doesn’t get much better than it is in Colorado. Even if you’re not an inveterate outdoorsperson, however, this Western state has something for you. With exciting metro areas, charming suburbs and vast swaths of rural acres, you can find the right place to live for you across Colorado’s 103,637 square miles of land (according to the United States Census Bureau.) 

One technique for owning a home that many Coloradoans are considering is going with a land loan first to secure a lot and then building over time. This is a great choice for those who can’t necessarily afford a built home or those who are building vacation homes.  With the value per acre in Colorado at around $6,462.11, per the New Estimates of Value of Land of the United States, citizens of Colorado may find that even several acres of land are pretty affordable. 

In contrast to construction loans in Colorado, which are for immediate construction projects, a lot loan lets you build a home in Colorado on your own schedule and pursue your build project on your own terms. 

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How land loans work in Colorado

You can get the money you need to buy a piece of property in Colorado with the help of a land loan. You can finance very large pieces of land because many lenders have no acreage restrictions on their land loans. These loans are not the same as farm loans or construction loans; a farm loan would require that the property be utilized for farming, while a construction loan would require that building be started immediately.

By taking out a land loan, you are able to leave the property in its current condition for as long as you’d want. Your land may also be used as security for a construction loan if you eventually wish to build a house on the parcel. For lenders, land loans carry a higher risk. These loans, therefore, can sometimes require a large down payment and come with higher interest rates. Given that they also come with flexibility and the option of building on your own terms, their benefits can outweigh their cons. 

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6 Best Colorado land and lot loan lenders

If you’re ready to learn more about the best land loan lenders in Colorado, here are the top options we’ve found through our research.

1. Credit Union of Colorado

Credit Union of Colorado is a member-owned, community-based lender offering a wide range of financial tools that was first founded in 1934. Today, it has over 140,000 members and over $2 billion in assets. This credit union offers land and mobile home loans, including raw lawn loans.

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

  • Land and mobile home loans available
  • Can finance raw land loans, up to 60 months or 61-120 month terms.
  • Land loans require an appraisal.
  • Amount financed cannot exceed $200,000 or 70% of the appraised value or selling price.
  • For mobile home loans, the home must be your primary residence and the amount financed cannot go over 80% of the appraised value.

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. Alpine Bank

Alpine Bank, which has served the Colorado region for more than 50 years, provides a range of loan financing options and wealth management tools to clients. Among its services are both land loans and construction loans, offering competitive loan offerings to qualified borrowers.

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

  • Loans available for land or for construction purposes.
  • Repayment terms are designed around borrower.
  • Decision-making and processing are handled  in Colorado.

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. California Bank & Trust

California Bank & Trust has been around for almost 70 years, providing a number of banking services for many needs in California. California Bank & Trust offers lot loans to use towards the purchase of a piece of property as well as construction loans to pay for building on a property.

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

  • Receive up to 60% of financing on approved credit.
  • Secure the site while you finalize architectural plans (construction projects preferred).
  • One closing instead of two saves you time and money.
  • Closing costs and interest payments during construction can be rolled into the loan.

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. Meridian Trust Federal Credit Union

Meridian Trust Federal Credit Union offers credit union services in Nebraska, Wyoming, and Colorado for members to help them reach financial goals and to provide banking services. Meridian Trust Federal Credit Union offers a number of loan and lending products, including land loans for homes and businesses.

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

  • Land loans available for improved property (sewer hookup, utilities, etc.)
  • Terms available in 60, 120, 180 or 420 months
  • Minimum loan amount is $100,000
  • $500 fees except title, appraisal/BPO

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. Taylor Mortgage Group

The Taylor Mortgage Group offers a number of products for those in Colorado who are looking to buy land, a home, refinance, or build a home. Some of the products that Taylor Mortgage Group offers include mortgages and land loans which can also be bridged to a construction loan.

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

  • Not a direct lender but instead can broker transactions for you
  • Available in Colorado only
  • 680 Minimum FICO score
  • 43% DTI (Debt- to- Income) Ratio
  • 20-35% down payment

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.

6. 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.

Is a land loan in Colorado right for me?

Are Colorado land loans the correct option for you? It relies on your long-term objectives or your current living situation. A land loan might not be the best option if you’re searching for a place to reside or open a business right away. However, one of these financial solutions can be excellent for you if you want to secure a lot in your preferred area and can take your time to create and build your home or business. If you already found a dream piece of real estate on the NMLS, that’s a great starting point to help you secure that property for your needs. But if you can’t get a traditional loan or take out a line of credit to buy, you need to look into all loan options.

You should also consider the kind of land you are interested in. Depending on the state a piece of property is in, there are various types of land loans. Raw or undeveloped land requires a certain type of lot loan and will require more work on your part to build a home. Fortunately, there are a lot of improved lots in Colorado, which are ready to go, providing an easy “in” to some expensive areas and an easier way to build. 

If you do your research for your dream home, you can even compare the numbers for typical mortgage loans versis getting competitive rates for a land loan in Colorado. You can build a new home on your own piece of land and may still get great loan terms. Homeowners can build their own property for the first time with a land loan instead and get something that is exactly what they were looking for through a land purchase. Review the closing costs, loan to value, credit score needs, and loan rates before committing with a lender.

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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