5 Best Land and Lot Loans in Maine


Maine land loans provide a way to finance land and eventually build a home or business.

Key Terms

  • Land loans let you buy in areas where you might not be able to afford a home.
  • Land loans, aka lot loans, let you build a home on your own time, spreading out the cost of the project.
  • These loans don’t come with the same insurance requirements as mortgages.

Quality of life doesn’t get much better than in Maine, where you can experience one of the most beautiful coastlines in the Northeast, quaint towns, and of course the best seafood around! According to the United States Census Bureau, Maine includes some 30,845 square miles of land, giving you plenty of options when it comes to finding a place to settle. 

New homes are getting more expensive in the state, however, leaving a good number of Mainers struggling to find homes that meet their needs.  Land loans may offer a creative approach; with the value per acre in Maine at around $6,142.07, per the New Estimates of Value of Land of the United States, those looking for a place to live can buy land and then build their own homes. 

Land loans give you something a little different from construction loans in Maine, which are for immediate construction projects. With a lot loan, you can build a home in Maine and wait to build a home when you are ready. 

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How land loans work in Maine

Land loans in Maine allow you to finance the purchase of a piece of land. Many lenders do not have acreage restrictions on land loans, allowing you to finance very large parcels, including forest parcels. These loans differ from farm loans and construction loans in that a farm loan requires that the land be used for agricultural purposes, whereas a construction loan requires that you begin building immediately.

Taking out a land loan allows you to leave the land alone for as long as you want. If you intend to build a home on the property, your land may also serve as collateral for a construction loan.

Land loans do expose lenders to more risk, so these “lot” loans in Maine can sometimes require larger down payments. Since the price for an acre is relatively low in Maine, many Mainers might find that buying and building is still more affordable than a new, pre-built home. 

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5 Best Maine land loan lenders

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

1. Gorham Savings Bank

Incorporated by the Maine State Legislature in 1868, Gorham Savings Bank serves all of southern Maine with commercial and personal loan and banking solutions. Among those offerings are land loans, including for residential construction, farm setup, woodland preservation, or other needs with decisions made locally.

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

  • Available for construction home purchases
  • Available for farm or agricultural purchases
  • Available for recreational purchases

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. Infinity Credit Union

Founded in 1921, Infinity Credit Union began to meet the needs of early Mainers working to establish the area. Today, it has over 19,000 members in York and Cumberland Counties. It offers land loans, with in-house processing, for building residential property in the state with 120-month terms and fixed rates.

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

  • In-house processing for quick decisions
  • Experienced lenders familiar with the Maine real estate market

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. Skowhegan Savings

Skowhegan Savings offers a number of banking and finance products for Maine residents to help meet their financial needs. One item Skowhegan Savings offers are land loans that can be used for the purchase of a lot for a home or for acreage to have a large land parcel.

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

  • Loans available for construction projects (i.e. if you intend to build in the next two years).
  • Acreage loans available if you’re looking to purchase land to hunt, fish or for any other recreational purpose.
  • Loans available in Maine only.

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. Bath Savings Institution

Started in 1852, Bath Savings Institution has been providing banking services in Maine for over 170 years. Bath Savings Institution offers land loans in Maine at reasonable rates with flexible options and can be structured to meet the needs of whoever is looking for land.

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

  • Long term loans available.
  • Flexible down payment options.
  • To qualify for lower interest rates, you can put 35% or more down
  • Land loans available with no requirement 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

5. 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.

Is a land loan in Maine right for me?

Is a Maine land loan right for you? It is determined by your current living situation as well as your long-term goals. If you need a place to live o in the immediate future, a land loan may not be the best option. If, on the other hand, you want to secure a lot in your favorite area part of Maine and work on your own schedule, one of these financial products could be ideal for you.

You should also consider the type of land in which you are interested. Land loans vary depending on the state in which a parcel of land is located. Raw land loans provide financing for completely undeveloped land, which can be ideal for some rough and ready Mainers. Unimproved and improved loans finance properties with some or a lot of infrastructure, respectively. Consider this when selecting a parcel and arranging financing and use calculators for borrowers to verify what’s best for you.

If you found something you really like on the NMLS and want to buy and develop the land but home equity lines of credit or other mortgage loans aren’t the right fit, you may like the loan process and loan rates through land loans. You could even possibly put a mobile home on the property while you build so you can monitor progress.

Talking to your preferred lending team could help you determine the monthly payment, interest rates, and more associated with building your dream home on a plot of land. Many homebuyers look at things like home equity loans, the loan terms may not work for someone who wants to buy land. Check out the loan terms, credit score requirements, and other details like disclosures for homebuyers in advance of taking out a land loan for the first time.

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.

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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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