Land & Lot Loans in Washington

Land loans give borrowers a financing option to secure land on which they can eventually build a home or business.

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6 Best Land and Lot Loans in Washington

Key Terms

  • Land loans let you make a land purchase in popular areas.
  • Also known as lot loans, these loans don’t hold you to any timeline to build.
  • These loans don’t have insurance requirements as home loans do, lowering monthly payments.

With 66,455 square miles of land according to the United States Census Bureau, Washington has a vast array of land from which to choose, if you are looking to own a home. Whether you like the busy (but expensive) way of life in Seattle or the lush rural setting of the mountains, you have a variety of choices before you. 

Washingtonians looking to buy homes are dealing with some pretty competitive markets these days and rising prices.  With the value per acre in Washington at $16,751.67, per the New Estimates of Value of Land of the United States, citizens of Washington can find a more affordable and manageable way forward. 

A Washington land loan, or “lot loan,” lets you buy a parcel of land and then start home construction when you are ready. You can use the land to eventually finance a construction loan in Washington, in many cases, allowing you to build the home that you want, not the one you are forced to settle for.

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Benefits of getting a land loan in Washington

Customarily, when looking for a home, you look for one that has already been built. However, with housing prices as they are in the United States and in Washington, you may find that what you desire and qualify for is out of reach.

Usually, this means settling for a primary residence that’s relatively small or in worse condition, but there is a different choice. Aspiring homeowners who are interested in purchasing property but can’t find or afford their dream home can use a land loan to purchase a vacant lot and build on it later.

When the alternative is settling, and with the affordable price per acre in Washington, this alternative approach can be one of the easiest ways to own a home in a competitive market.

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6 Best Washington land loan lenders

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

1. Qualstar

Qualstar Credit Union was founded in 1952 as the Safeway Seattle Employees’ Federal Credit Union by employees who were working for the Seattle Division of the Safeway grocery chain. Now Qualstar Credit Union offer a number of options to their members, including mortgage loans, home equity loans and land loans.

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

  • Raw land loans available (no improvements required).
  • Raw land can be used for recreational purposes.
  • Vacant lot loans available for improved properties with utilities.
  • Land loans available in WA, OR and ID
  • Maximum 20 acres
  • Residential zoning only (no farmland, agricultural, commercial, timberland)
  • 5, 10, and 15 year terms
  • Purchase or Refinance
  • Maximum 80% LTV on vacant lots
  • Maximum 75% LTV on raw land
  • Full Appraisal Required on all transactions
  • 1% Funding Fee

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. Port Washington State Bank

Since opening its doors in 1938, Pinnacle Bank has provided community support through a range of banking solutions for those in Nebraska, Missouri, and Kansas. Among the loan offering available are construction loans for lot purchase and construction costs for homes designed to be competitively priced and accessible.

We reached out to Port Washington State Bank to discuss their land loan program, which we’ve included here:

  • Lot loans for the construction of a new home or vacation home
  • Loans are locally serviced
  • Loans available to new home builders

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. Private Capital Northwest

Private Capital Northwest has over 30 years of being a provider for the needs of new construction, fix and flip properties, raw land development, and others nationwide, including in Washington, Idaho, and Oregon. It operates as a private money lender taking on risky projects, including the purchase and refinancing of land loans.

We asked Private Capital Northwest for more details on their vacant land loan product and here is what they said:

  • Available in Washington, Idaho and Oregon
  • Not a traditional bank. Offers hard money financing only.
  • Raw or entitled property available
  • Loans available for farmland
  • Loans available for infrastructure costs

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. First Fed Bank

First Fed Bank, founded in 1923, is a full-service financial institution serving 16 locations across Seattle and the surrounding areas. It donated over $1 million to nonprofit organizations in 2021. The financial institution offers several types of land loans and lot loans for improving real estate for future home use.

To get you the best information, we contacted First Fed Bank for more details on their land loans rates and here are the key features and terms:

  • Available for improved real estate as a future home site 
  • Fixed rate loans with no prepayment penalties 
  • Secondary financing and/or gifted funds are not permitted
  • Site improvements include water, power accessible to property, road access and copy of soil analysis that was completed within the last 5 years, plus perk test 
  • Property value for determining financing amount is based on the purchase price or appraised value, whichever is 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.

5. AgAmerica Lending

AgAmerica Lending is a multi-generational family farm lender serving residents in numerous states. The organization specifically focuses on agricultural financing. It is ranked as one of the fastest growing private companies and offers coast to coast services to farmers and ranchers throughout the country.

We reached out to AgAmerica Lending to discuss land loan terms, which you can read about below:

  • Minimum of 25 acres required
  • Minimum loan amount of $150,000
  • Farm/ranch financing available
  • Recreational land loans available
  • Terms from 18 months to 30 years

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. WaFd Bank

Based out of Washington state WaFd Bank serves areas of Idaho, Washington, Nevada, and New Mexico, meeting all of their banking needs. WaFd Bank offers a number of products to help its customers secure homes and property through lot loans and land loans.

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

  • Land and lot loans available in Nevada only
  • Land loans available even if construction is not imminent
  • Improved land loans available up to $700,000
  • 20-year term lot loan available for long-term plans.

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 Washington land loan best for you?

A land loan makes a lot of sense if you want to get on the property ladder in a desirable neighborhood or buy a piece of land to turn into your dream holiday home. Raw land loans, unimproved land loans, and improved land loans are all possibilities to think about.

A land loan allows you to obtain the land you want before formalizing all of your construction plans, giving you time to fine-tune your layout to perfection. A land loan gives you options that a traditional, built home does not, which is usually a take it or leave it situation.

Is there a disadvantage to these loans? They may require substantial down payments and higher interest rates than traditional mortgages. The benefits of building your own custom home on your own timetable, on the other hand, may make this one inconvenience worthwhile. You will also save money on insurance because land loans do not require the same insurance as mortgages. Plus, with the cost of an acre relatively low in Washington, you may be able to afford that down payment with ease. 

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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