Georgia land loans give aspiring homeowners an easier way to access the home of their dreams or business owners a way to finance land purchases.
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JD MORTGAGE® connects you with lenders who want to help you purchase land. We find the lenders that offer terms specially tailored to your goals, whether it’s building your dream home or some other business, agricultural or recreational purpose.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your land financing needs.
The Peach State is famous the world over for its great Southern cooking, relaxed atmosphere and wide-ranging natural landscapes. Within the 57,716 square miles of Georgia as documented by the U.S. Census Bureau, you can also find some of the best school systems in the South and some dynamic metro areas.
Given all that, it’s no surprise that many Americans want to call Georgia home. Many Georgians are taking a different approach to property in the Peach State, however, by turning to land loans. Per the New Estimates of Value of Land of the United States, the value per acre of land in Georgia is $14,242.79, giving Georgians perhaps an easier way to approach homeownership.
While construction loans in Georgia offer a somewhat similar route, they can lock you into the construction process from “go.” A land loan, instead, allows you to find and purchase a parcel of land that you love, then build in your own time.
Purchasing land in Georgia can be an exciting prospect, whether you plan to build your dream home, invest in real estate, or use the property for agricultural or recreational purposes. However, financing raw land can be tricky, as not all lenders offer land loans. This article will explore the top banks for land loans in Georgia, providing an overview of their loan terms, requirements, and processes to help you find the best financing option for your needs.
Overview of Land Loans
Also known as lot loans or raw land loans, land loans allow borrowers to purchase vacant land or lots for future use. The property can be residential, agricultural, commercial, or recreational. Land loans typically offer more flexible qualifying criteria and down payment requirements compared to traditional mortgages. They also don’t require private mortgage insurance.
Key features of land loans include
- Financing up to 90% of the purchase price
- Fixed and adjustable rate terms from 5 to 20 years
- Interest-only payments to start
- Ability to roll into a construction loan later
Land loans provide an affordable way to secure your ideal property before you are ready to build or develop it,
Top Georgia Land Loan Lenders
Several banks in Georgia offer competitive land loan programs. Here are some of the top options:
1. Georgia United Credit Union
Georgia United Credit Union is one of the largest credit unions in the state, with over 170,000 members. They provide land and lot loans with up to 80% financing and flexible terms.
Key features:
- Up to 80% financing
- Multiple loan terms available
- Local branches across Georgia
As a credit union, Georgia United offers excellent rates and a streamlined application process. Membership is open to anyone living or working in certain Georgia counties.
2. AgSouth Farm Credit
Headquartered in Statesboro, AgSouth Farm Credit has over 100 years of experience providing financing for farms, land, and homes in the region. They offer land loans for:
- Large acreage tracts
- Hunting and recreational properties
- Timberland
- Farmland
- Small acreage and residential lots
Key features:
- Up to 85% financing
- Terms up to 20 years
- Flexible lending for different property types
AgSouth is an excellent choice for agricultural, timber, or recreational land purchases.
3. First Commerce Credit Union
First Commerce Credit Union provides land loans for buying vacant property and lots in North Florida and South Georgia.
Key features:
- Up to 90% financing
- Fixed rate terms
- $500,000 maximum loan amount
- Local loan officers
As a credit union, First Commerce offers personalized service and competitive rates. They have branches across South Georgia.
4. Queensborough National Bank & Trust
Queensborough National Bank & Trust provides land acquisition loans to individuals and developers in Georgia.
Key features:
- Up to 75% financing
- Terms up to 15 years
- No prepayment penalties
- Can convert to construction loan later
Their land acquisition loans offer flexible qualifying and competitive rates from a well-established Georgia bank.
5. Citizens Bank & Trust
Based in North Alabama, Citizens Bank & Trust lends in Georgia and provides land loans for primary residences or second homes.
Key features:
- Construction and land purchase financing
- Draw system for construction disbursements
- May roll into permanent financing
- Local underwriting
Citizens Bank & Trust offers a streamlined process combining land purchase and construction.
What to Look for in a Land Loan
When researching land loans, here are some key factors to consider:
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Max LTV: The loan-to-value ratio determines the maximum amount you can borrow relative to the land’s appraised value. Look for LTVs of 80-90%.
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Term length: Longer terms (up to 20 years) mean lower payments. But shorter terms build equity faster.
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Interest rates: Compare both fixed and adjustable rate options. Fixed rates offer predictability while ARMs have lower initial rates.
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Fees: Ask about origination fees, application fees, and prepayment penalties. Lower is better.
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Conversion options: Some land loans allow you to convert to a construction loan later to build on the property.
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Land types: Make sure the lender finances the type of property you are looking to purchase.
Focus on finding a land loan that fits your budget and plans for the property.
How to Apply for a Land Loan
Applying for a land loan is similar to applying for a traditional mortgage:
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Get pre-qualified to see potential loan amounts and rates.
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Shop and make an offer on your chosen land.
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Complete a full loan application with income, assets, credit, and property documentation.
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The lender will appraise the property and underwrite the loan.
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Finally, you will close on the loan and purchase the property.
Work with a loan officer to select the right financing and guide you through the land loan process.
Find the Best Land Loan for Your Georgia Property
Purchasing vacant land or lots through a land loan can make your property dreams more affordable. Research multiple lenders to find the best loan terms and interest rate for your needs. Whether you want to eventually build a home, farm the land, or hold it as an investment, a Georgia land loan can help you secure the perfect property. Consider your budget, plans for the land, and financing options, then apply for pre-approval to start the process today.
5 Best Georgia land loan lenders
Some lenders only offer land loans for residential projects, while other programs can lend to those that are pursuing recreational or agri-business purchases.
Benefits of getting a land loan in Georgia
Often, when you start looking for a property – especially for the first time – you realize that there’s a difference between the price tags on your wishlist and what you can afford.
While you could settle for an older home or something that doesn’t have everything you want, you could do things a bit differently by getting a land loan.
A land loan allows you to purchase vacant property in the city or neighborhood you want to be in for a fraction of the cost of a finished home. Then you can plan and save until you can start building the home you want.
Since land is much cheaper than buildings, this also means that you can qualify to purchase land long before you can afford to buy the house you want. As you hold onto the lot, it will appreciate just like a home would, which might give you more options when it comes time to finance your construction project.
How to Get a Land Loan (And What to Know Before You Do)
FAQ
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