Land Loans in Santa Barbara, CA
Get land loans in Santa Barbara for raw land and development parcels. Fast approval for investors and builders. Finance your land acquisition today!
Land acquisition represents a distinct category of real estate investment that requires specialized financing approaches. Whether you are securing development sites for future construction, purchasing entitled land ready for building, or investing in raw acreage with long-term appreciation potential, land loans provide the capital foundation for these unique assets. Unlike improved real estate, land presents unique lending challenges that traditional financial institutions often avoid. Banks typically refuse to finance raw land, view entitled parcels with skepticism, and impose requirements that make land acquisition financing impractical for most investors. Our land loan program fills this financing gap. Santa Barbara's land market encompasses diverse opportunities, from infill lots in established neighborhoods to hillside parcels with ocean views, agricultural land with development potential, and commercial development sites in growing areas.
Frequently Asked Questions
What types of land do you finance?
We finance virtually all land types including raw undeveloped parcels, entitled development sites, agricultural land, commercial development land, and residential building lots. We lend on land intended for future development, immediate construction, or long-term investment holding. Properties can be located anywhere in Santa Barbara County.
What loan-to-value ratios are available for land loans?
Land loan LTV ratios depend on property characteristics and development status. Raw land without utilities or entitlements typically qualifies for 50-60% LTV. Partially entitled land with some approvals may reach 60-65% LTV. Fully entitled land with building permits can qualify for up to 70% LTV.
How long are the terms for land loans?
Our standard land loan terms range from 12 to 36 months, providing adequate time for entitlement work, development planning, or market timing. For properties requiring extended holding periods, we offer extension options typically in 6-12 month increments. Interest-only payments during the loan term minimize carrying costs.
Can I get a land loan if the property is not entitled?
Yes, we finance raw land without entitlements, though loan terms reflect the additional risk and uncertainty. Raw land loans typically feature lower leverage (50-60% LTV) and may require larger equity contributions than entitled land financing. We evaluate raw land based on zoning potential, location fundamentals, and likely entitlement pathways.
What are the interest rates and fees for land loans?
Land loan interest rates typically range from 11-13% annually, reflecting the specialized nature of land collateral. Rates vary based on LTV ratio, entitlement status, property location, and loan term. We charge 2-4 points as origination fees depending on complexity. There are no prepayment penalties on most land loans.
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