Land and Lot Loans

BUY TODAY, BUILD ON YOUR TIME WITH A LAND OR LOT LOAN

Like the look of an up-and-coming neighborhood but not ready to buy? Want the perfect location to build your dream home? Buying your own land or an improved lot can often make a lot of sense. Wasatch Peaks Credit Union offers flexible, affordable lot and raw land loans so you can build on your terms.

HOW DOES A LAND AND LOT LOAN WORK? WHAT ARE THE REQUIREMENTS?

A land and lot loan helps you finance a piece of property before you're ready to build. It’s a great way to secure your future homesite or getaway location while starting to build equity now. These loans often require a higher down payment and shorter terms than traditional mortgages.

To qualify, the land typically needs to meet the following:

• Legal Road Access: Must have permanent, legal access via a public road or recorded easement.
• Proper Zoning: Zoned for residential use or your intended purpose.
• Buildable Lot: Suitable for development and not in a floodplain or protected area.
• Utility Access: Access to water, electricity, and sewer/septic improves approval odds.

Ready to start your land ownership journey?

THREE STEPS TO APPLY FOR A LAND LOAN IN UTAH

FAQs ABOUT LAND AND LOT LOANS

• What loan is best for land?

  A land loan is best if you're buying a vacant lot without immediate plans to build. If you're planning to build soon, a construction loan may be a better fit. For larger parcels in rural areas, consider a USDA loan.

• What is a good credit score for a land loan?

  A good credit score for a land or lot loan in Utah is typically 680 or higher. Some lenders may require a score of 720 or more, especially for raw or undeveloped land. The better your score, the more likely you are to qualify for lower rates and better terms.

• What is the lowest down payment for land?

  At Wasatch Peaks, the lowest down payment for a land loan is 20% of the purchase price. Other lenders offering loans for unimproved or raw land may require 25% to 35% of the purchase price down because of the higher risk for lenders.

• How long are most land loans?

  Most land loans have terms ranging from 10-20 years. Shorter terms are more common because land is riskier for lenders to invest in than home mortgages. Some lenders may offer terms up to 30% for improved lots or if construction is planned. 

  At Wasatch Peaks, we offer land and lot loans with terms ranging from 10 to 30 years.

• Is a loan for land different than a mortgage?

  Yes, a land loan works differently from a traditional mortgage. A mortgage is used to buy property with a home on it, while a land loan finances vacant land. Land loans usually have higher interest rates, shorter terms, and larger down payment requirements because they’re riskier for lenders. Mortgages generally offer lower rates and longer repayment periods.

• Do I need to join Wasatch Peaks Credit Union to apply for a lot and land loan?

  Yes, you need to join the credit union, and becoming a member is easy! You simply need to meet these criteria:

  • You are an immediate family member of an existing member-owner: parent, child, brother, sister, spouse or surviving spouse, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships. 
  • You live, work, worship, attend school, or regularly conduct business with companies and other legal entities located in Weber, Davis, and Morgan Counties, or within a select underserved community located in Box Elder, Salt Lake, Summit, Utah, Tooele, and Juab Counties. 
  • Member of Trails Foundation of Northern Utah (TFNU.org), a 501(c)(3) NGO functions as a planner, promoter, constructor, and protector of a network of public paths, trails, and related open spaces for non-motorized use. Not a member of the Trails Foundation Northern Utah? Wasatch Peaks will enroll you at no additional cost to you. 
  • If none of these fit, but you still want to join, a Wasatch Peaks Member Service Representative will

   

OTHER GREAT HOME FINANCING OPTIONS FROM WASATCH PEAKS