5 Best Land and Lot Loans in Pennsylvania


Land loans let borrowers secure your ideal property before prices and interest rates rise.

Key Terms

  • Land loans are a great way to build a home in an area you might not otherwise be able to afford.
  • Land loans don’t involve paying insurance or PMI.
  • You can build a home to your own specifications over time.

If you like experiencing four, full seasons and having access to some of the best universities and healthcare in the country, Pennsylvania is a great place to call home. 

There are also plenty of landscapes to settle in in this state, from the chic urban environments of Philly and Pittsburgh to the rural countryside in the west. According to the U.S. Census Bureau, there are 44,742 square miles of land in Pennsylvania, so you have lots of options to consider. 

As prices rise in Pennsylvania, homebuyers are taking a new approach to homeownership and buying parcels of land on which they can build a custom home. This offers an easier entry point to owning a home, in many ways, and gets you some flexibility. A purchased parcel of land can also serve as collateral on an eventual Pennsylvania construction loan when you want to build or refinance. 

If you want to buy land in Pennsylvania, the first thing you’ll need to understand in the loan process is how you’re going to finance your purchase. Luckily, there are many lenders in Pennsylvania that offer land loans (sometimes called lot loans). Per the New Estimates of Value of Land of the United States, the value per acre of land in Pennsylvania is $31,923.44, making this approach a pretty affordable option when compared to many modern, built homes. 

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How land loans in Pennsylvania are different

If you want to build a new house in Pennsylvania, you’ll need to find suitable land. There are several types of land loans available to you. A raw land loan is required if your ideal location is completely undeveloped. If there are infrastructure elements on a site, an unimproved land loan would be required. Finally, there are improved land loans for parcels of land that are prepped for development.

Land loans are distinct from construction loans in that they only finance the land. You can buy a parcel while prices are still low and then hold on to it for as long as you want. When the alternative is settling for a smaller home or renovating an older one, this approach can be a better way to get an affordable home that is actually perfect for you. 

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5 Best Pennsylvania land loan lenders

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

1. Traditions Bank

An independent community bank that serves Central Pennsylvania, Traditions Bank works hard to meet the needs of all of its customers through all of the real estate products and services it offers. Traditions Bank has a number of different programs to help customers, such as with a lot loan or a home loan.

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

  • Lot loans are available to finance undeveloped land where a primary or secondary residence will be built.
  • Available even if you are not yet ready to begin construction
  • Construction to permanent loans available for construction projects

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. The Muncy Bank & Trust Company

The Muncy Bank & Trust Company was started in 1893 to serve Clinton, Northumberland, and Lycoming counties in Pennsylvania. The Muncy Bank & Trust Company is a full service bank that offers a number of products to its customers, including land and lot financing and mortgage loans.

We reached out to The Muncy Bank & Trust Company to discuss land loan details, which you can read about below:

  • Improved and raw land financing available
  • Land and lot loans available in Central Pennsylvania only (Lycoming County)
  • No requirement to immediately begin building
  • Construction loans also 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.

3. First Columbia Bank & Trust Co

Founded in 1926 when the Columbia County Trust Company merged with Bloomsburg National Park, First Columbia Bank & Trust Co is a full-service, in-person bank offering service in 13 locations in three counties. Among its offerings are land buyer loans for open tracks, farms, and residential development.

We asked First Columbia Bank & Trust Co for more details on their vacant land loan product and here is what they said:

  • Available for raw land purchases.
  • Can finance farm purchases, construction projects, etc.
  • Available for improved land 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.

4. TD Bank

TD Bank is a full service bank that offers all types of financial products, including investments, online banking, 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 the mortgage team at TD Bank to discuss land loan details, which you can read about below:

  • Can finance land purchases as part of ground up 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. Patriot Federal Credit Union

Patriot Federal Credit Union is a not-for-profit financial cooperative owned by its members. Chartered in 1965, available to those who live, go to school, work, or worship in Franklin County, MD, Washington County, MD, and the eastern panhandle of West Virginia. It offers land loans for up to 10 acres.

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

  • 10 acres maximum lot size
  • Can lend in PA, MD, WV and VA
  • Maximum 10 year repayment term for unimproved land.
  • 70% loan to value maximum for unimproved land.
  • Maximum term of 15 years for improved land.
  • 80% loan to value maximum for improved land.
  • All land loan applications are approved locally

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 Pennsylvania land loan the right fit for you?

If the idea of building a home in Pennsylvania appeals to you and your family, or if you want to buy land in Pennsylvania, you should consider whether a lot loan makes sense. It can be difficult to navigate the process of applying for a land loan in Pennsylvania on your own or trying to figure out mortgage calculators without knowing what you’ll be approved for. This is why we recommend contacting a reputable loan officer who has many years of experience and knowledge and can guide you through the process of obtaining a land loan in Pennsylvania, from application to building your dream home.

Don’t waste time attempting to understand all of the requirements like minimum credit scores and down payment minimums that must be met in order to obtain a lot loan in Pennsylvania. Because they will listen to your needs and match them to the right loan, the best loan officers can tell you exactly what you need to do. You will be able to begin construction on your new home as soon as you have been approved for a land loan, if you like or take your time with your project.

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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