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Lot Loans

Secure the land to build the perfect home with a Traditions Mortgage Lot Loan.

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Fixed-Rate Adjustable-Rate Construction / Permanent Loan Swing / Bridge Loans Lot Loans
Lot Loans

How does a Lot Loan Work?

Lot Loans are used to fund the purchase of undeveloped land where a primary or secondary residence will be built. Traditions Mortgage offers Lot Loans with competitive interest rates and terms for qualified applicants.

Why would you need a Lot Loan?

When you’ve found the perfect parcel but haven’t decided on a builder, a Lot Loan can help you secure the land before it goes off the market. Buyers who intend to delay construction on the new home until a later date find the flexible structure of a Lot Loan meets their financial needs and lifestyle.

Once the loan is secured, there’s no need to rush to the construction phase. A Lot Loan allows borrowers to take the needed time and care in choosing the right architect or custom home builder for their dream home. Soon-to-be empty nesters or those transitioning to new careers or employers find Lot Loans an ideal way to finance the perfect piece of property on their timeline.

How do Lot Loans differ from Mortgage Loans?

Mortgage loans are used to purchase move-in ready homes and generally have longer repayment terms. The residence serves as loan collateral. Lot Loans are considered transitional financing and usually have repayment terms that are shorter than mortgages. The land serves as collateral for a Lot Loan.

Both Lot and Mortgage Loans offer borrowers fixed or variable interest rate options, may require down payments and are subject to minimum collateral requirements. Loan details will vary by lender.

Who qualifies for a Lot Loan?

Loan applicants with future plans to build their primary or secondary residence on a designated piece of property may qualify for a Lot Loan if they meet specific credit, income, debt, and asset requirements.

What are the benefits of a Lot Loan from Traditions Mortgage?
  • Knowledgeable loan experts: As a local lender, we understand the York County market. Our expert mortgage team can partner with you during each stage of the home building process. We can help with your search for a qualified architect or builder that understands your needs and project timeline.
  • Return to us for your Construction Lending needs: Once you’re ready to build, we already know you! Eligible borrowers can apply for a Construction/Permanent Loan which allows for interest-only payments on funds used during the construction phase. A simple loan conversion with Traditions Mortgage gives borrowers the ability to lock-in competitive mortgage rates during the building phase, removes the need to re-submit a loan application after the home is finished, and reduces stress with a one-time closing. Once your dream home is complete, the Construction Loan is then automatically converted to a Permanent Mortgage.

When you find the perfect spot to build your dream home, a Traditions Mortgage Lot Loan can be an affordable way to secure the land until you’re ready to break ground.

Contact us to learn more about Lot Loans in Central Pennsylvania

Our experienced loan originators are available to answer your questions and help determine if a Lot Loan, or another Traditions Mortgage program, is the best fit for your financing needs. Contact a member of our lending team or stop by one of our convenient locations to get started.

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