Construction Loan With Land Equity

Instead, most land lenders cap equity loans for vacant land at 35% of the property’s value. In some cases, you may be able to acquire a land equity loan for a higher percentage of equity, but you will likely face higher interest rates and additional closing costs as a result.

If you already own your lot, your equity in the property can be included as part of the collateral for the construction loan. If you bought the land with a lot loan,