refinance land loan: key features and highlights

Why consider it

Refinancing a land note can lower your rate, stretch the term, or unlock cash-out for roads, utilities, or site prep. Whether the parcel is raw, entitled, or improved, a well-structured refi can replace a looming balloon, shift from variable to fixed, and align payments with your development timeline.

How it works

Lenders review an appraisal, title, zoning, and your income or project plan. Expect loan-to-value limits that vary by land type, plus underwriting that considers DSCR or global DTI. Budget for closing costs such as origination, title, recording, and potential survey updates.

Key benefits

• Reduce monthly payments and stabilize cash flow
• Lock a fixed rate to manage risk
• Eliminate or reset a balloon maturity
• Access equity to fund improvements
• Match loan term to build-out or sale horizon

Tips to qualify

1. Provide a current survey and clear title
2. Document access, utilities, and zoning status
3. Show reserves and a realistic timeline or exit
4. Compare local banks, farm credit groups, and niche lenders
5. Request a rate lock and review prepayment terms

A concise package-maps, budgets, permits, and comps-helps underwriters move faster and can earn better pricing.