4 Best Land and Lot Loans in New Jersey


Land loans can give people in New Jersey a more affordable way to buy real estate.

Key Terms

  • Purchasing land with a land loan is one way to afford buying land in an expensive area.
  • A lot loan does not require that you pay insurance like a traditional home loan.
  • Sometimes called lot loans, these loans let you build your new home how you want, when you want.

New Jersey is one of the most diverse and interesting states in the Union, with a little bit of something for everyone. Whether you like the commuter bustle of the New York metropolitan area or the quiet green of Central Jersey, this Eastern Seaboard state has something you will love. 

According to the U.S. Census Bureau— the Turnpike State is comprised of some 7,335 square miles of land, including of course major metropolitan areas, suburbs and rural areas. Given it’s small size, however, and its proximity to NYC, housing is getting more and more expensive in the state. Some residents, therefore, are getting creative and taking out land loans to buy parcels on which they can build their own homes. 

Per the New Estimates of Value of Land of the United States, the value per acre of land in New Jersey is $196,409.71. While that is high when compared to other states, consider two things: one, that housing prices are much, much higher and, two, that many beautiful homes exist on lots as small as a quarter or half an acre. 

What’s even more important? Once you own such a valuable piece of land, it can serve as collateral for when you take out a construction loan in New Jersey and build your home. Rather than settling for what you can get in the crazy New Jersey housing market, you’ll actually end up with your dream home. 

Show Me Lenders

How land and lot loans work in New Jersey

How do New Jersey lot loans work? They primarily serve as financial assistance for the purchase of land. There are no rules governing how you use the land, however. In other words, if you are not planning to build your home or vacation home for a few years, you can buy the parcel and then leave it alone until you are prepared.

While the cost of land in New Jersey, most homes don’t require more than an acre. With their easy financing terms, land loans can actually make it more affordable overall to own a home, including your eventual construction project. Review your options with the vetted mortgage lenders in New Jersey, who can walk you through the loan process and the difference between raw, unimproved and improved lots in the state. 

Get Quotes for Your Land Loan

4 Best New Jersey land loan lenders

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

1. Manasquan Bank

Manasquan Bank has been providing financial solutions like home equity lines of credit and land and lot loans in New Jersey for 140 years. They specifically work with New Jersey residential-zoned loans.

We reached out to Manasquan Bank to learn more about its land loan program specifically. Here are the details worth knowing:

  • Finance up to 65% of the property value
  • 5/1 and 5/5 adjustable-rate mortgages options available
  • Land loan does not require utilities to be present on the property

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. Normandy

Started in 1985, Normandy Mortgage Banker began providing mortgage loan services for many parts of the United States, with all programs available in 10 states and limited product availability in 32 other states. Normandy Mortgage Banker offers mortgages and residential lot and land loans for up to $1.5 million.

We asked Normandy for more details on their vacant land loan terms and here is what they said:

  • Loan amounts from $35,000 to $1,500,000
  • Loan amounts up to 75% of the purchase price in improved subdivisions, where construction will begin soon after acquisition, otherwise up to 65% loan to value.
  • Cross collateralization allowed on other properties, if needed, for maximum or greater loan amounts
  • Loan options with terms up to 18 months available. Terms greater than 18 months will be considered with a lower loan to value.
  • Foreign Nationals are eligible for this program.
  • No minimum acreage requirement or maximum zoning limitations
  • Loans are available to Borrowers with excellent to less than perfect credit scores(subject to underwriting).
  • Residential zoned land.
  • Limited income documentation available at 40% loan to value or less.

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. TD Bank

TD Bank is a full service bank and mortgage broker 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 rates, 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.

4. 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.

Does a New Jersey home land loan make sense for you?

What kind of house do you intend to build? If you want a home that you can move into right away, a land loan may not be the best option. A land loan is ideal for homebuyers who have time to build during a new construction project or homeowners who are building second or vacation homes.

The type of lot you want and how developed or underdeveloped it is should also be considered. There are many acres of undeveloped land in New Jersey, which means that these acres lack the necessary infrastructure for housing.

In those cases, you would need a raw land loan for raw plot of land and then put in the effort to improve the property for use as a home. There are also a large number of residential lots that have been retrofitted for residential homes and are ready to go. These lots can be a great option if you want to buy in an area where a built home is out of your price range, such as in the commuter areas around New York City.

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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