5 Best Land and Lot Loans in Indiana  


Land loans in indiana give Hoosiers an easier way to enter the competitive housing market.

Key Terms

  • Land loans let you buy in popular areas for a fraction of the cost of a home.
  • Land loans let you build a home on your own time, spreading out the cost of the project.
  • You can save on insurance with land loans.

Hoosiers are well aware of the many benefits that come with Indiana living. With great universities, sports teams, and fun metro areas, as well as charming, rural settings, Indiana has a lot to offer across what is 35,826 square miles, according to the United States Census Bureau.

While the cost of living in Indiana is still better than in some parts of the country, buying a home is getting more expensive, especially in very popular areas.  With the value per acre in Indiana at around $16,902.52, per the New Estimates of Value of Land of the United States, taking out a land loan (sometimes called a lot loan) can give you a more affordable way to secure acreage in expensive areas. 

You can also take your time with a land loan, giving you more control of the process and the costs involved. Land loans are an alternative to construction loans in Indiana, which are typically given to Hoosiers hoping to build immediately. 

Show Me Lenders

How are land loans in Indiana different from other loans

When you take out a construction loan in Indiana, that loan is for a build project that will start immediately. A land loan is just for financing the land itself. You can then wait to build on that land for as long as you want. 

There are also different kinds of land loans out there. A raw land loan is for undeveloped property, an unimproved land loan can be for a lot with some infrastructure, and an improved land loan is for a piece of property that is ready to go as a residential or commercial lot. This gives you a range of options to consider in your search. 

Land loans in Indiana are also different from other loans when it comes to interest and down payments. Banks sometimes want a larger down payment, and these loans can come with higher interest rates. The good news is, however, that the property can serve as collateral once you are ready to take out a construction loan and move to the next step. 

Get Quotes for Your Land Loan

5 Best Indiana land loan lenders

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

1. Old National Bank

Old National Bank was established in 1835 in Evansville, Indiana. From a small one-room bank to a location that is a top 35 U.S. bank, it now has $46 billion in total assets serving 250 communities in the Midwest. The bank offers lot and land loans up to 5 acres.

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

  • Lot loans available up to 5 acres
  • 15-Year Fixed1 or 5/6mo ARM with 20-Year Amortization
  • 20% minimum down payment
  • Land loans available between 5 to 20 acres
  • 15-Year Fixed or 5/6mo ARM with 20-Year Amortization
  • 35% minimum down payment
  • Available in Indiana, Kentucky, Michigan, Wisconsin and Minnesota
  • Lot and Land loans can finance purchases of either residential lots or underdeveloped 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.

2. American Community Bank of Indiana

American Community Bank was founded in 1910 in Indiana was founded as a safe way to save money and lend it to others for building and buying homes. Using the online loan form American Community Bank offers home equity lines of credit as well as home equity loans.

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

  • Fixed rate terms of 10 or 15 years
  • Loan to value ratios of up to 80%

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. Elements Financial

Elements Financial is an employer-based, “at-work” credit union with over 150 partner organizations offering a range of financial products, including land loans. Founded in 1930, the organization is ranked in the top 4% of credit unions in the U.S., with over 100,000 members and $2 billion in assets.

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

  • Land loans are available for unimproved land for primary residences.
  • Able to Finance up to 80% of the lot value (20% down payment required) up to $250,000 maximum
  • 1-year maximum loan term
  • $900 origination fee

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. Brown County State Bank 

In 1901 Brown County State Bank was founded in Mt. Sterling, Illinois, to meet the needs of the community and has since expanded to Adams County by joining with the Golden State Bank. At Brown County State Bank, they offer lot loans as well as construction and bridge loans.

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

  • Lot loans help provide short-term financing for the property you intend to build your dream home.  
  • Terms from 6 to 60 months are 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.

5. 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.

Does an Indiana land loan make sense for you?

When you take out a land loan, you can end up paying a bit more for financing, so if you’re uncomfortable with that, a lot loan might not make sense. You will save on insurance, however, which can sweeten the deal a bit if you’re comparing this application process with other home loans like a mortgage loan. Most people use the NMLS to find their dream home, but if you can’t find something you really like, you can explore what other borrowers often do, which is to find a land loan provider in Indiana.

For buying real estate, you need to know closing costs, interest rates, credit score requirements, the monthly payment, and other application process details for home buying. Homeowners who want to make a land purchase can research the maximum loan amount available by contacting lenders directly and verifying whether or not there are other loan options like refinancing.

To get a new home on undeveloped land, make sure you qualify for the loan process and understand all the loan rates ahead of time once you know your purchase price. This is a great type of loan for someone who can’t use an adjustable rate mortgage or other home loan to build in Indianapolis or elsewhere in Indiana.

A land loan also makes sense for those who want to take their time with a project and are not in a rush to build immediately. This can give you time to find the exact design and materials you want to build the home of your dreams. Finally, an Indiana land loan can make a lot of sense for you if you are determined to live in an area where you might not necessarily be able to afford a built 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.

Save more money than your friends

One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.