5 Best Land and Lot Loans in Idaho


Land loans are useful to purchase land prior to construction, land for recreational purposes or in connection with agriculture business.

Key Terms

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

Idaho has some of the most stunning vistas and national parks in the West, along with a great quality of life for everyone. With its low crime rates and tax benefits for seniors, it also makes an ideal locale for retirement homes. With 82,645 square miles of land, according to the U.S. Census Bureau, Idaho offers a lot of opportunities for establishing a new or second home. 

One approach to homeownership in Iowa is to buy a parcel of land with a land loan and build a home from scratch. This gives you a great way to get the home you want, on your own terms.  Per the New Estimates of Value of Land of the United States, the value per acre of land in Idaho is $3434.74, making Idaho land some of the most affordable in the country.

Once you are ready to build, a construction loan in Idaho can also help finance the next step of the process, with your land even serving as collateral.  

Show Me Lenders

How land and lot loans work in Idaho

What is the procedure for obtaining a lot loan? They are essentially loans for the purchase of land for a business or a residence. They have no restrictions on how you use the land. In other words, if you are not planning on building your primary or vacation home for a few years, you can buy the parcel and leave it alone until you are prepared to take next steps. 

A large down payment is sometimes required for land loans; however, because the cost per acre for land in Idaho is relatively low, many Idahoans may find that down payment manageable. With an acre under $3500, you could even finance several acres and a construction project and still come in under budget.

These loans may have higher interest rates as well, but you can end up saving money over the duration of the loan because they do not necessitate that you to purchase insurance.

Get Quotes for Your Land Loan

5 Best Idaho land loan lenders

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

1. Payette Financial Services

Payette Financial Services is a direct hard money lender serving Arizona, Colorado, Nevada, Montana, Utah, Oregon, New Mexico, Wyoming, and other areas offers loans up to $2.5 million. That includes land loans for commercial land development, raw land, farmland, and commercial development lots.

We reached out to Payette Financial Services to discuss land loan details, which you can read about below:

  • Land loans available in Idaho, Arizona, Colorado, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
  • Not a traditional bank but instead acts as a hard money lender.
  • Loan decisions made by looking to the strength of the land, acreage or development lot pledged as security for the loan, rather than the borrower’s financial condition and credit scores, in determining whether or not to approve a loan request.

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. Banner Bank

Banner Bank has been providing banking services for over 130 years to meet the needs of all of the Walla Walla, Washington area. They are able to provide a number of loan options for lot loans, refinancing, and home purchases to meet all needs.

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

  • Prefers clients who intend to use land for construction purposes
  • In-house approvals and fast processing
  • Fixed-rate or adjustable-rate
  • Borrow up to 75% of the lot value
  • Finance improved and unimproved land

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. Twin River Bank

Idaho based Twin River Bank operates out of four locations in Asotin, Clarkston, and two in Lewiston to meet their customers’ needs. Twin River bank is a full service bank that offers a number of products and services for its customers, including lot loans, land loans, and HELOCs.

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

  • Lot loans available for those looking to build
  • Utilities and building permit required
  • Lot loans have two-year term with interest payments monthly. Goal is for borrower to build within two years.
  • Land loans available for bigger properties
  • Requirements 35-50% down payment and higher interest rate

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. WaFd Bank

Based out of Washington state WaFd Bank serves areas of Idaho, Washington, Nevada, and New Mexico, meeting all of their banking needs. WaFd Bank offers a number of products to help its customers secure homes and property through lot loans and land loans.

We asked WaFd Bank for more details on their vacant land loan product and here is what they said:

  • Land and lot loans available in Nevada only
  • Land loans available even if construction is not imminent
  • Improved land loans available up to $700,000
  • 20-year term lot loan available for long-term plans.

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 Idaho home land loan make sense for you?

What kind of house do you want to build? If you need a place to live right away, a land loan may not be the best option. A land loan is ideal for those who can spend time on a project or who are constructing second or vacation homes. If you know you’d like to get started in real estate but you’re not sure how, take a look at the NMLS to see the kinds of properties out there and then compare that with land cost. Developing land can be difficult, but it can also pay off in spades with your dream home. While other home loans will get you into an existing property with a loan from a bank or credit union, a land loan is more of a long-term play.

Depending on your home buying preferences, you also need to verify if the loan terms work for you, such as the loan amount total with interest, whether you can refinance, the underwriting process, and more. To enjoy the beautiful recreational land in Boise or elsewhere, try looking at the land purchase application process for real estate loans. Rather than going though the traditional process, you can start with an NMLS ID and look at ideal real estate land in Idaho using a land loan.

You should also consider the type of lot you want and how developed or undeveloped it is. Idaho has many acres of undeveloped land, which means that these acres lack key infrastructure required for residences. In those cases, you would require a raw land loan and then work to optimize the location for a home. Working in consultation with the right lender can help you understand what you need and find the right lot and loan for your needs and budget. Even if you’re a first-time buyer of land in Idaho, this process might be easier than going another way.

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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