Location & Hours Help Center Schedule an appointment
search
Press Enter to search
Popular Searches:
CDs   |    Zelle    |    Order Checks    |    Routing Number    |    Money Market    |    Mortgage    |    Auto Loans

Land Loans

Building lot on hilly land - Land plot management - Real estate concept with a vacant land on a green field available for building construction and housing subdivision in a residential area

Land loans from Kennebunk Savings can help you purchase land now and build your dream home later

With a land loan, you can purchase land now with our financing options, allowing yourself time to think about your future plans for the land and potentially build equity. Less rush means less stress. So, take your time to save a bit more for your dream home or find just the right architect to bring your vision to life.

What to know before you consider a land loan.

You must confirm in advance with the city/town that the property you want to purchase is a buildable lot. After that, Kennebunk Savings can begin the land loan process with you.

  • You can build equity on a land loan and use it later to help support the construction of your home.
  • Finance up to 65% of the purchase price.
  • Our land loans are for residential zones only, for example, a primary residence or a second home.
  • The land loan process undergoes the same credit underwriting and approval process as other real estate purchases.

Let’s talk

Land Loan FAQs

What is a land loan?

A land loan is a type of credit in the form of a mortgage that helps borrowers finance and secure the purchase of land.

How does a land loan differ from a mortgage?

Land loans are for the purchase of raw or improved land, while a traditional mortgage has a home on the property. Land loans generally have shorter terms than mortgages, ranging from 15-20 years. Down payment requirements and interest rates are often higher as well.

What is raw land? What is improved land?

Raw land refers to undeveloped parcels of land that lack infrastructure such as roads, utilities, or buildings. Improved land refers to land that already has essential infrastructure in place. The presence or absence of these improvements can be a factor in determining the terms of the loan, but there are also other factors. Kennebunk Savings provides land loans for raw land, but not improved land.

Are there different types of loans for raw land versus improved land?

Depending on the lender, it would not be a different loan but rather the financing may have different requirements. So for example, where a raw land loan could require 35% down, improved land may only require 25% down. Terms and interest rates could be impacted too, this really depends on what the lender’s risk appetite is. Kennebunk Savings provides land loans for raw land, but not improved land.

Products are subject to approval. Program terms and conditions are subject to change without notice. Other restrictions and limitations may apply.

How long can I wait before I build on the land I purchased?

The decision is yours, consult with one of our residential lending officers to fully understand the terms and conditions of your loan. Contact them here.

Do I need a land loan if I want to build on the land I purchase immediately?

Probably not. If permits are in place and contractor is ready, you may consider checking out a Kennebunk Savings Construction Loan instead because it allows you to finance the purchase and construction with one loan.

Can I get pre-qualified for a land loan?

Yes! We’re happy to check and see if you qualify. You can also refer to this helpful mortgage prequalification checklist as well.

What happens to my land loan when I’m ready to build my house and need a construction loan?

Your land loan may be refinanced at the time the construction loan is finalized.

Is there a specific size acreage required to build?

Yes, the acreage of the land you are looking to build on must meet the minimum building lot size requirements of the city/town it is located in.

Great reads to keep you focused

Building lot on hilly land - Land plot management - Real estate concept with a vacant land on a green field available for building construction and housing subdivision in a residential area
Article 2 MIN READ

5 Tips To Help You Improve Your Credit Score

Whatever your goals are—a comfortable retirement, buying a home, traveling the...

Personal Banking Credit Cards
Building lot on hilly land - Land plot management - Real estate concept with a vacant land on a green field available for building construction and housing subdivision in a residential area
Article 3 MIN READ

Starting the Mortgage Process: Why Prequalify?

Beautiful backyard, huge kitchen, master bath, and nearby amenities like shopping, parks, and jobs....

Loans Personal Banking Mortgage & Home Equity
Building lot on hilly land - Land plot management - Real estate concept with a vacant land on a green field available for building construction and housing subdivision in a residential area
Article 3 MIN READ

How to Choose a Home Mortgage Lender

Before you even begin looking for a home, careful research to find a knowledgeable and reliable...

Mortgage & Home Equity

Contact Kennebunk Savings Today!

Let’s see if a land loan is the right choice for you. Our residential loan officers are here to help you understand all the details. Call us to talk or schedule an appointment or send an email.

Connect with one of our lenders