6 Best Land and Lot Loans in Connecticut


Connecticut land loans can give you a more affordable way to eventually own a home or business in Connecticut.

Key Terms

  • Land loans can make more expensive areas, including neighborhoods within reach of NYC, more accessible.
  • Until you build on a lot, you will not need any insurance or PMI.
  • In some cases, the purchased land can be used as collateral on a construction loan when you’re ready to build.

Connecticut offers an ideal balance of New England-style living and proximity to NYC and the other major cities on the Eastern Seaboard. Unfortunately, owning a home in Connecticut is cost-prohibitive for many right now. Connecticut is quite small, for one thing. According to the U.S. Census Bureau, Connecticut has 4,842 square miles of land, meaning that supply can outweigh demand in this popular state. .

That has driven up the price of new built and modern homes in the state, but there are alternatives, including land loans. With a Connecticut land loan, you can secure a property in your favorite part of the state first and then build a home when you’re ready or when you can afford it. Unlike Connecticut construction loans, which finance a construction project specifically, a land loan, or “lot loan,” is just for the land and gives you some flexibility in construction.

With the value per acre of land in Connecticut at $128,824,48, per the New Estimates of Value of Land of the United States, many in the state may find that this approach is still an investment, but with the right planning it can still be more affordable than many new built or modern homes. 

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Benefits of getting a land loan in Connecticut

What are some advantages of obtaining a land loan in Connecticut? Think about this:

  • You can take your time and construct a home on your own schedule with a land loan.
  • You can build a home that is completely customized thanks to land financing.
  • Building a home from the ground up might sometimes be simpler and more affordable than remodeling an existing one.
  • Until your home is actually constructed, you won’t need to pay for any insurance on your land.

Naturally, a land loan also enables many buyers to purchase property in regions they might not otherwise be able to afford, such as in some of Connecticut’s well-known coastal areas or in the suburbs near New York City.

Get Quotes for Your Land Loan

6 Best Connecticut land loan lenders

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. Tidemark Federal Credit Union

Tidemark Federal Credit Union offers a number of benefits and options for banking needs for their customers in Delaware, Maryland, and Virginia. Tidemark Federal Credit Union has a number of different options to choose from in their products, including construction loans, land loans, and mortgages with competitive rates.

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

  • Available for loans in Delaware and Maryland
  • Borrow up to 70% of the lot’s value (up to $400,000)
  • Repayment terms up to 15 years
  • During construction, get financing for up to nine months and up to 100% of your property’s value at a fixed rate with interest-only payments
  • Construction loan converts to an Adjustable-Rate Mortgage once your home is complete, saving you thousands of dollars in additional settlement costs

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. TD Bank

TD Bank is a full service bank that offers all types of financial products, including investments, wealth planning, and private banking services. TD Bank does have a large lending ability in which loans can be obtained for property and land purchases and the purchase and renovation of a home.

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

  • Can finance land purchases as part of construction project
  • Construction loans are interest-only during the construction phase

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. Jewett City Savings Bank

Jewett City Savings Bank was founded in 1873 and has long been a hometown-focused bank with over $400 million in assets. Among the full-service bank’s offerings are land and construction loans for a variety of real estate projects, including investment projects, residential homes, or commercial properties.

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

  • Available for construction projects
  • Available for land loans even if you’re not yet ready to build

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. Country Living Loans

For more than 100 years, Country Living Loans from Farm Credit East have provided access to farm, land, and country home financing throughout the Northeast portion of the U.S. A customer-owned bank, they specialize in rural landscape projects, including land and lot loans for farms or other needs.

We reached out to Country Living Loans to discuss land loan details, which you can read about below:

  • No acreage limits.
  • Available for farm loans (with or without a home structure).
  • Country properties, including farms, bare land, timberland, home lots and more.
  • Can also finance multiple parcels and properties with more than one deed or several tax parcels.
  • Long-term fixed rates available.
  • Rural expertise.

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. Thomaston Savings Bank

Connecticut based Thomaston Savings Bank was founded in 1874 and has continued to provide in much the same way as an independent mutual savings bank. Thomaston Savings Bank offers a number of banking and financial services for its customers, including construction loans and land loans.

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

  • Multiple financing options available for approved building lots
  • Fixed and variable rates with different terms available

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 Connecticut land loan the right choice for you?

While the cost of an acre is relatively high in Connecticut compared to other states, you may find that getting just enough acreage for a nice home and then building your own home is still more affordable than buying a built home. Do your research and run the numbers to make sure that is the case for your project. If you don’t have a down payment for a typical loan or can’t make it work with the interest rate, it’s smart to take the information you have from the NMLS and use that to explore alternative financing.

The good news is Connecticut land loans give you flexibility. You can take the time necessary to determine your financial situation, choose a design, and construct your ideal home. A land loan is a wonderful option if you find that alluring and are not in haste to relocate. Make sure you look into each mortgage program individually, checking out loan to value, debt ti income ratios, opportunities for refinancing, and credit score requirements, especially if you’re comparing this option to a line of credit or mortgage loan. Knowing the loan terms before you apply is especially important for first time homebuyers or those who might need a jumbo loan to secure their property.

Last but not least, land loans are fantastic for second houses that you don’t have to move into right away. This may be one of the simplest ways for Connecticuters to ultimately acquire that ideal second home on the coast or in the woods of Connecticut. You could build a new home when you find something you’re crazy about on the NMLS and then get a loan amount to cover that purchase. If a regular mortgage loan just won’t work, you still have options. With this land loan process, you may end up with your dream home because you can build it on your own property. As an alternative to a home loan or construction mortgage, this loan allows you to buy a piece of land to build your single family home.

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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