Yes — you can finance raw land or a buildable lot in Southwest Florida, and VanDyk offers lot loans. But a land loan is not a home loan with a different address: the down payment is typically larger, the terms are typically shorter, and the lot itself has to qualify, not just you. It’s also not the only route. Depending on your timeline, a construction loan that includes the lot, or buying the land and the build together, can be the better structure. The right first step is matching the financing to what you actually plan to do with the land.
How a land loan is different
The lot is part of the approval. With a house, the property is built and its value is easy to establish. With raw land, the lender looks harder at the lot itself: zoning, road access, whether utilities are available or a well and septic are needed, flood zone, and how buildable it is. Two lots at the same price can be very different loans.
More money down, shorter runway. Land loans generally require a larger down payment than a home purchase and often come with shorter repayment terms. At VanDyk, lot loans run 30% down if you’re going to build within 3 years, and 40% down if you don’t plan to build within 3 years. That’s the trade for financing an asset that isn’t a home yet — and it’s why the structure matters more than usual.
Your building timeline shapes the loan. Buying a lot to build on in six months is a different file from buying land to hold for five years. Lenders treat those differently, and so should you. Say the timeline out loud at the start; it changes which loan fits.
The other routes worth knowing about
A construction loan can include the lot. If you’re building soon, a construction-perm loan can finance the land and the build in one structure, instead of a land loan now and a construction loan later. My video on construction perm loans walks through how that works across FHA, VA, USDA, and conventional.
Buying the house and the lot together. Sometimes the land sits next to a home you’re buying, or a builder package puts the lot and the build in one purchase. Those can often be financed as one transaction rather than a standalone land loan.
Equity, if you already own a home. Some buyers use equity in their current home to buy the land outright. That isn’t always the right answer — but it’s an option a lot of land buyers never hear about, and it’s worth a conversation before assuming a land loan is the only door.
Before you write an offer on a lot
Check the things that decide whether the land can do what you want: zoning and setbacks, utility access or well/septic feasibility, flood zone and insurance implications, and any HOA or community rules about building timelines. A cheap lot with no legal way to build on it isn’t cheap. This is also where your realtor earns their money — local knowledge about which areas are buildable matters more with land than with almost anything else.
If the file can work, I’ll lay out the plan. If it can’t, I’ll say so and explain what would need to change.
FAQs
Can I finance raw land in Florida?
Yes. Lot loans are a real product and VanDyk offers them. The lot has to qualify as well as the borrower — access, utilities, zoning, and flood zone all come into it.
How much do I need to put down on a land loan?
More than on a home purchase. At VanDyk, it’s 30% down if you’re going to build within 3 years, and 40% down if you don’t plan to build within 3 years. Terms are subject to lender requirements, and the lot itself still has to qualify — but those are the numbers to plan around.
Can I buy land now and build later?
Yes — that’s one of the most common land purchases I see. Just know the financing is structured around that timeline, and a construction-perm loan that includes the lot may fit better if the build is coming soon.
Can I put a manufactured home on land I buy?
Often, yes — land and a manufactured home can work together, and there are financing structures for it. The home and the land both have to meet the program’s requirements, so it’s a conversation to have before you buy either one.
Does a land loan work like a mortgage on a house?
Similar idea, different details: bigger down payment, usually shorter terms, and the property review focuses on buildability instead of a finished home. Once you build, the construction or permanent loan replaces the land-only structure.
Related Reading
- Purchasing a Home program page (construction and purchase options)
- Manufactured Home Loans in Southwest Florida
- USDA Loans program page (rural land and zero-down in eligible areas)
- First-Time Homebuyer Checklist for Fort Myers and Cape Coral
Tim Hart, Branch Manager, VanDyk Mortgage
8280 College Pkwy #101, Fort Myers, FL 33919
Office: (239) 437-4278 · Call or text: 239-910-5668
Tim Hart NMLS #354676 · VanDyk Mortgage Corp NMLS #3035
Ready to start now? You can begin your application here: https://timhart.floify.com/apply
All loans are subject to credit and property approval. Program guidelines and lender requirements can change without notice. This article is general information about mortgage options, not a commitment to lend or a guarantee of approval.