6 Best Land and Lot Loans in North Carolina


North Carolinians who want to build a new home on their own terms can benefit from looking at North Carolina land loans.

Key Terms

  • Land loans allow borrowers to secure a parcel of land more affordably in expensive areas.
  • You can then build a home or business on that land on your own schedule.
  • Land loans don’t require that you take out insurance like traditional lenders do, saving you money.

With four national forests, 10 national parks, and a whopping 41 state parks, North Carolina is home to much natural beauty. According to the U.S. Census Bureau, it’s also home to 48,623 square miles of land, offering a lot of options for those looking for property. 

That’s right— sometimes buying a built home isn’t your best option. In some scenarios, purchasing land first and building later might be your best option. With the value per acre of land in North Carolina at $16230.43, per the New Estimates of Value of Land of the United States, residents of North Carolina might well find that buying land is much more affordable right now than buying a home. 

How can you do that? With land loans. Also known as lot loans, these mortgage loans let you purchase land and build when you’re ready, making them slightly different from a North Carolina construction loan.

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Benefits of getting a land loan in North Carolina

Most people don’t even realize that buying a vacant lot is an option until someone tells them about land loans. It’s certainly not the usual way people buy homes in North Carolina, but there are some unique benefits to this kind of property purchase:

  1. You can buy a lot in an area you love before prices go up, and it will cost a lot less than a finished home in the same area.
  2. When you’re ready to build, there are construction loan options available, and building your own home is nearly always cheaper than buying one that’s already built.
  3. You can build the exact home you want and need – so there’s no need to settle for one that needs a lot of work to get to your standards.
  4. Until you have a home on the lot, many of the insurances you need for traditional types of property don’t apply.

Choosing to buy a vacant lot might seem strange at first, but if you’re not in a big hurry to get into a house, it could very well be the answer you’re looking for. 

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6 Best North Carolina land and lot loans

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

1. American National Bank and Trust Company

Serving Virginia and North Carolina, American National Bank and Trust Company was founded in 1909 and offers a number of products for customers when it comes to land and lot loans. American National Bank and Trust Company provide land and lot financing as well as lot or land loans.

We reached out to American National Bank and Trust Company to discuss land loan details, which you can read about below:

  • Raw or improved land is eligible for this program
  • If you currently own another home, American National offers a cash-out refinance, home equity loan, or HELOC to get the funds you need to purchase your land.  
  • Underwriters based on Virginia and North Carolina

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. Carolina Farm Credit

Carolina Farm Credit is based in Statesville, North Carolina, and provides a number of financing options for those looking for land in the area. Some of the products available from Carolina Farm Credit include land loans for homes, loans for raw land, and farm loans for rural property.

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

  • Available for farming
  • Available for construction projects (i.e. home site)
  • Raw land ok
  • Recreational purposes ok (hunting, fishing, etc.)

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. Welcome Federal Credit Union

Welcome Credit Union got its start in 1974 to serve employees of Burroughs Wellcome Co, a pharmaceutical company named after Silas Burroughs Henry Wellcome. It appears that the Welcome name stuck around because the bank is still using it all these years later.

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

  • Loan decisions are handled locally in North Carolina
  • Multiple repayment terms offered
  • Low Down Payment Options
  • Maximum loan-to-value (LTV) is 90%
  • Undeveloped, single-family dwelling, residential real estate located in North Carolina are the only properties eligible
  • Can finance vacant land loans

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. AgCarolina Farm Credit

For more than 100 years, AgCarolina Farm Credit, based in Raleigh, has provided financial support for farmland, timberland, and rural land needs, including large and small tracks, lot loans, and home loans. The organization has over $1.4 billion in outstanding loans serving 3,000 members across 12 branches in the eastern North Carolina area.

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

  • Large tracts
  • Small tracts
  • Timber tracts
  • Loans for land
  • Lot loans
  • Home loans
  • Construction loans
  • Monthly, quarterly, bi-annual or annual payment structures are available based on individual cash flows.
  • Farmland, timberland, and rural land financing is available for loan terms up to 20 years.
  • Balloon products are available to meet short- and long-term objectives and budget.

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.

6. Truliant Federal Credit Union

Truliant Federal Credit Union was founded in 1952 and serves areas of Virginia and North Carolina with a number of products and services to aid their members. Truliant Federal Credit Union offers a number of loan products, including those for land, constructions, mortgages, and mortgage refinance, among others.

We asked Truliant Federal Credit Union for more details on their vacant land loan product and here is what they said:

  • Land loans only available in Florida, Georgia, Tennessee, South Carolina, North Carolina, Ohio and Virginia. 
  • Loan amounts available between $5,000 and $200,000.
  • Financing available up to 80% of your land’s purchase price or value, whichever is less, in a subdivision and up to 70% for financing raw land.
  • 70% financing available raw 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.

Does a North Carolina home land loan make sense for you?

If you’ve been trying to find your dream home for a while and just aren’t getting anywhere, then building your own home on a vacant lot might be the ideal solution. 

Likewise, if you know you’ll want to build in the future and you want to lock in today’s prices for the land you need, this is a perfect solution. You will need some money for a down payment, but it will still likely be less than the down payment on a home. 

Whether it’s your main home or a country getaway, choosing vacant land to build on later is a great way to keep all your options open.

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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