A land loan is a way to finance property that doesn’t have a house built on it. There are several categories of land, and the type you’re considering will likely have an impact on the type of loan you can get:
1 Raw land: This is land with no improvements (such as water and sewer lines or road access) that would help make the property buildable.
2 Unimproved land: While similar to raw land, unimproved land may have some basic infrastructure or older structures, but generally doesn’t have all of the water, electric and other utilities you’ll need. This land may have once had a house on it, but doesn’t any longer. This may also be referred to as “undeveloped” land, but must typically be conducive to building a home in the future.
3 Improved land: This type of land has access to utilities and roads and is ready for building a house. These parcels may also be known as lots.
