Sign in empty lot next to homes that says Lot for sale

Lot Loans

Location matters.  Your lot financing does too.  

Let us finance that perfect location to build your new home, even if you are not quite ready to build.   Contact us today to learn more about the best lot financing options available for your unique needs.  Once you are ready to begin the construction of your new home, we will help you refinance your lot loan into a construction-to-perm mortgage.  

What is a lot loan?

It is a loan that is used to finance the purchase of a lot that a borrower will eventually build on. They may be called many different names.  To name a few, land purchase loans, raw land loans, residential lot loans, land mortgage loans, vacant land loans, or land and construction loans.  The money loaned to the borrower is simply used to allow the land to be purchased before the construction of a home begins. 

Benefits of a Macatawa Bank lot loan

  • No requirement to build
  • Long term amortization available
  • No escrow account required
  • Local, personalized service
  • Local decisions
  • Fast approvals and competitively priced rates
  • Finance up to 80% of the property value
  • Repayment options to fit your budget

Tips before buying a lot

  • Make sure the location fits your lifestyle. Is the neighborhood a good fit?
  • Insist on a warranty deed and title insurance to make sure you have a clear title to the property.
  • Check with utility services (sewer, electric, etc) to ensure they will be available and what the costs will be.
  • Get a staked survey of the property and be aware of all easements and accesses.
  • Double check property conditions in various weather conditions.
  • Research restrictions and site limitations to ensure you can build the home the way you want.
  • The interest expense on a lot loan may be tax deductible if the land is held as an investment.  Consult with your tax advisor.

Apply online, over the phone, or in-person

Apply for home financing on your terms. With 26 convenient West Michigan branch locations and a secure and easy to use online application, no matter how you want to apply, we are convenient for you.  To complete the online application, you will need: Social Security number, contact & employment information, best estimates of income, assets & liabilities.

Macatawa Bank's primary lending area is West Michigan.  Online applications will be considered received on today’s business day if submitted during the course of the bank’s normal business hours;

  • 9am EST – 5pm EST Monday – Friday, excluding Federal Holidays
  • 9am EST – 12pm EST on Saturdays

Applications received outside of this timeframe, including Federal Holidays and Sundays will be considered received the next business day. 

What borrowers need to know . . .

Credit granting criteria
Consumer finance counseling
Borrower bill of rights (PDF)
NMLS consumer access
Macatawa Bank NMLS 410490

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