Land falls under two categories in commercial finance. It is either readily developable and requires financing for a term of 12 months or less, or it is for future development and requires long term financing. Types of land financing available are:

Short Term Financing

Lending solutions up to 75% of the value of the land for projects that are shovel ready and will begin construction in under 12 months. This type of financing is for the borrower with construction experience and can demonstrate they have access to the required equity to provide a clear exit strategy through Standard Construction Financing for the asset class being built.

Long Term Financing

Lending solutions up to 65% of the value of the land. This financing is meant for long term land holdings that are looking to start development 2 – 10 years out. This type of financing requires a Borrower that can provide proof of excess cash flow from other assets in order to be able to amortize the loan over a period of 10 years or less. Lenders will likely provide up to 1 year interest only while a development plan is put in place. If the land is not ready for development, they will look to amortize the loan to reduce their exposure.