Acquisition & Development Loans
How it works
The loan usually funds part of the land purchase at closing, then releases development money in draws as work is completed and inspected. Interest is typically paid only on the amount drawn. The loan is repaid as lots are sold or refinanced into vertical construction financing.
Who it's best for
- Developers preparing a subdivision or master-planned site
- Builders who want to control land before going vertical
- Projects with entitlements in place or close to final
What lenders look at
- Entitlement status and timeline
- Your development track record
- Detailed budget and schedule
- Lot absorption and exit plan