Land & Lot Loans in Virginia

Land loans in Virginia give homebuyers financing options and an easier way to enter a competitive real estate market.

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5 Best Land and Lot Loans in Virginia  

Key Terms

  • Land loans let you buy land in popular areas, including Northern Virginia, for a fraction of a home purchase price.
  • Land loans let you build a home on your own time, spreading out the cost of the project, as needed.
  • You can save on monthly payments with land loans, which have no mortgage insurance requirements like a traditional mortgage loan.

Virginia is a “best of both worlds” place, in many ways. With one of the prettiest landscapes in the South and East, Virginia also provides access to the busy DMV area and the Eastern Seaboard in general. With 39,482 square miles to choose from, according to the United States Census Bureau, Virginians have a variety of options. 

While the cost of living in Virginia is still decent in many regions, buying a home is getting more expensive, especially in metro areas in the North.  With the value per acre in Virginia at around $21,921.16, 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 an ideal location. 

You can also take your time with a lot loan in Virginia, giving you more control of the process than home financing. Land loans are an alternative to construction loans in Virginia, which are typically given to aspiring homeowners hoping to build their primary residence immediately. If you build equity in your land loan, you can use that equity to eventually qualify for a construction loan. 

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How are land loans in Virginia different from other loans

When you obtain a construction loan in Virginia, it is for a construction project that will begin immediately. A land loan is only used to finance the land itself. You can then wait and build on your own terms and schedule. 

There are also various types of land loans available. A raw land loan is for undeveloped property, an unimproved land loan is for a lot with some infrastructure, and an improved land loan is for a lot that is ready to be developed as a residential or commercial lot. This provides you with a variety of options to consider when looking for a location. 

Land loans in Virginia vary from other types of loans in terms of interest and down payment. Banks may require a big down payment, and these loans may have higher interest rates. The good news is that the property can be used as collateral once you’re ready to apply for a construction loan and proceed to the next step. And with land prices in Virginia low compared to some neighboring states, such as Maryland, it can provide a cost-effective way forward. 

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5 Best Virginia land loan lenders

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

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 rates, 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. Colonial Farm Credit 

Colonial Farm Credit, which is part of the Farm Credit System, was founded in 1916 and continues to be a members-borrower owned financial institution serving Eastern Virginia and Southern Maryland residents. It offers farm and country home loans, land purchase, construction, improvements, and ag-related business loans, including for farmers.

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

  • Available for construction loans
  • Available for recreational land purchases
  • Available for farm acreage (timber, etc.)
  • No minimum or maximum acreage limits
  • We make loans for land with no buildings; we see value in open acreage
  • Long-term interest rates available
  • Land to construction mortgages available.
  • Open land
  • Building lots and home sites
  • Country estates

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. Atlantic Union Bank

Founded in 1902 in Virginia, Atlantic Union Bank was created to be a customer focused bank to meet the needs of the community. At Atlantic Union Bank, you will find products for purchasing residential lots and undeveloped lots to be able to plan and build your new home.

We wanted to learn more about the Atlantic Union Bank land loan program, which you can read about below:

  • Available to purchase residential lots
  • Available to acquire undeveloped land
  • Flexible repayment loan terms

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 lender that offers all types of financial products, including investments, wealth planning, online banking 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. Farm Credit of the Virginias

Farm Credit of the Virginias is a part of the Farm Credit System and has more than $2 billion in financial under management, including in Virginia, West Virginia, and western Maryland. It offers farm loans, land loans for residential development, ag-business loans, and credit lines for qualified borrowers.

We reached out to Farm Credit of the Virginias to discuss land loan options, which you can read about below:

  • Specializes in rural properties
  • Long-term, fixed rate loans with no obligation to build within a certain time frame
  • No land survey requirement (unless title insurance exception)
  • Farm Credit is exempt from recordation tax, which means you save money on closing costs
  • No maximum acreage limitations
  • Flexibility if you want to use it for residential purposes
  • No maximum loan amount
  • No maximum acreage limitation
  • Acceptance of manufactured housing
  • One-time closing for both land and construction 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.

Does a Virginia land loan make sense for you?

If you take out a land loan, you may end up paying a bit more for financing, so if that bothers you, a lot loan may not be for you. However, you will save money on insurance, which can sweeten the bargain a little.

A land loan is also useful for individuals who wish to take their time with a project and are not in a hurry to start building right away. This can give you more time to find the exact design and materials you need to build your dream home. Finally, if you are determined to live in an area where you may not be able to afford a built home, as in the expensive NoVa region, a Virginia land loan may make a lot of sense for you.

Looking for a land or lot loan in a different state?

If you want to find the best land and lot loans in other states, click on your state below.

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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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