5 Best Land and Lot Loans in Delaware


Delaware land loans give you an easy way to get a second home or vacation home.

Key Terms

  • Land loans let you nail down a location in popular areas.
  • You can then build in your own time.
  • These loans don’t require insurance, saving you money overall.

Tiny but mighty, Delaware covers only about 1949 square miles of land, according to the United States Census Bureau. This small Eastern state is popular for its beautiful beaches, stretches of farmland, and easy distance from the DC metro area. . 

Home prices are rising, however, and it’s getting harder for many to find the right home in the state. That’s why many are turning to lot loans, also known as land loans. These loans let you secure the land you want and eventually build a home when you are ready.  While the value per acre in Delaware is $57,692.31, per the New Estimates of Value of Land of the United States, this approach can still be more affordable than buying a new build or modern home, or finding a home in popular resort areas, such as Rehoboth and Dewey. 

The land acquired with a land loan can also serve you well once you build. You may be able to use it as collateral for a construction loan in Delaware, which you can then use to finance a home construction project. 

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Benefits of getting a land loan in Delaware

Purchasing a home is a major undertaking. This is particularly true when buying new builds or modern homes. You could buy a home that requires a reno project, but that would entail months, if not years, of costly renovation work and modifications.

The other option is to lower your expectations so that your budget matches what you can affordably find out there. None of those alternatives sound attractive, which is why many individuals choose to buy vacant land instead.

Building a home from scratch can be significantly cheaper than buying a pre-built home, especially in desirable areas of Delaware. If you build it yourself, you will also have complete control over the aesthetic, floor plan, and configuration of your home.

Another benefit of a land loan? You can take your time, starting your project when you see fit. 

Get Quotes for Your Land Loan

5 Best Delaware land loan lenders

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

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. Dover Federal Credit Union

Dover Federal Credit Union was first chartered in 1958 by civilian and Air Force workers at the Dover Air Force Base. Today, it serves 40,000 members of the military, residents of Delaware, and over 450 workplace partners. Among its offerings are competitively priced home loans for qualified members.

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

  • Borrow up to 80% loan to value on raw land
  • Terms up to 12 years
  • Mainly lend to people who intend 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

3. 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.

4. 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.

5. Community Bank Delaware

Community Bank Delaware was started by a group of local business professionals to meet the needs of the community in 2006. The bank now has over $250 million in assets and services residents of Sussex County through commercial and personal loan products, including construction loans for lot and residential development.

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

  • Land loans available if you want to secure a lot but aren’t ready to begin building.
  • Home construction loans available as well.
  • Will provide funds to acquire the lot, then work with your builder to advance funds to complete your new home.

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 a Delaware home land loan make sense for you?

If you’re having difficulty finding an affordable place in Delaware, or if you simply can’t seem to find the home you want in the location you prefer, a land loan could be the solution. If you already know you want to invest in real estate but can’t get a mortgage loan or don’t see a property on the NMLS you love, you might build your own. Knowing the loan programs, down payment needed, disclosures, loan term, options for refinancing, any pre-payment penalty, monthly payments, loan amount and total loan payment from you, credit score required, and interest rates can help you find a great land loan in Delaware. Whether you’re a first time buyer or an experienced investment, these loan options provide broader choices for getting your dream home.

These loans allow you to obtain the most crucial component of a property—the location—while negotiating the remaining details. With property prices expected to rise in the near future, this could save you a great deal of money over the long haul. Whether you’re a first time homebuyer or experienced with investment properties, now could be a great time to cash in.

Land loans are also ideal for financing second homes, retirement homes, and vacation homes. This is particularly relevant in Delaware, where many come to establish second homes and vacation homes along the shoreline..If you’re looking for a unique way to acquire property in this key area of Delaware, or anywhere in the state, this could be it. If you can’t go through a refinance of your current property to pull the cash and home equity loans just won’t work, a land loan might be the solution.

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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