Online Banking

Land & Lot Loans

Secure the perfect spot for your new home.

Have you found the perfect land for your dream home, but are not quite ready to build? Don’t worry. Arkansas Federal Mortgage offers land and lot loans that allow you to buy the property now and start building later. Whether you want to buy multiple acres or smaller lots,1 our land and lot loans offer competitive rates and no hidden fees. So, you can buy the land you want today and build your dream home when you’re ready.

Features & Benefits

Illustration of woman with lock


Secure the land now so that you can build when you’re ready. 

Easy Transition

When you’re ready to build, just integrate it into a construction loan.

$0 Application Fee

There’s no cost to apply for a land/lot loan and the application is easy.

Trusted, Local Lending from Start to Finish

We are one of the largest and most trusted mortgage lenders in Arkansas. Plus, with local lending and servicing from start to finish, we are with you every step of the way.

Free Homebuyer Guide!

Just fill in your email address, and we’ll shoot it over to your inbox faster than you can say “dream home.”

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Ready to get started? It’s easy.

1. Find a Lot/Land

Before applying for a lot/land loan, you’ll need to first find the land you’d like to purchase.

2. Contact Us

Speak with one of our expert mortgage experts to learn the particulars and how to move forward.

3. Apply

When you’re ready, you can apply online or with one of our mortgage lenders.

Frequently Asked Questions

What is a land loan?

A land loan is just like it sounds. It’s a loan to purchase a piece of land or a lot.

How do land loans work?

The process of getting a land or lot loan is similar to that of a mortgage. The stages include pre-qualification, mortgage application, loan processing, underwriting, and closing.

What are the building requirements for building if I get a land loan?

There are no specific building requirements associated with Arkansas Federal’s land loans, except for those defined by the property owner’s association or subdivision where your land is located.

What are the interest rates and terms like on a land loan?

Several factors, including your credit score, the down payment, your debt-to-income ratio, current market rates, and the amount borrowed, influence the interest rate and terms for land loans. Arkansas Federal currently offers three fixed-rate balloon mortgage options for land/lot loans: a 10-year loan with a 3-year balloon for loans at least $20,000; a 15-year loan with a 4-year balloon for loans at least $50,000, and a 20-loan with a 5-year balloon for loans at least $100,000. If you haven’t started building your home within your note term, you’ll need to pay it off, roll it into a construction loan, or refinance.

What is the downpayment for a land/lot loan?

A minimum down payment of 25% is required for all land/lot loans.

What is the minimum credit score required for a land loan?

We require a minimum credit score of 620 to purchase land. However, if you plan to apply for a construction loan in the future, the minimum credit score requirement may be higher. So, it’s essential to keep your credit score in good standing.

Is there a minimum purchase amount?

Yes, we require a minimum purchase amount of $20,000 for a land or lot loan.

Ready to get started?

You can get pre-qualified online! Plus, there’s no cost to apply.
Have questions? Call us at 800.456.3000 or visit your local branch.