Loan Program
Land + Build Packages
One loan to purchase your land and build your barndominium
A land-and-build package combines the purchase of your lot with the construction financing for your barndominium into a single closing, so you're not managing two separate loans, two sets of paperwork, and two closing costs.
One closing for land and construction, matched to a specialty lender
What's Covered
Land and construction, treated as one project
Down Payment Mechanics
How land equity counts toward your down payment
If you already own the land you plan to build on, that ownership can do real work for you. Many land-and-build programs let the appraised value of land you hold free and clear — or your equity in it if there's still a balance owed — count toward your down payment or the overall loan-to-value calculation, instead of requiring a separate cash down payment on top of a land purchase.
The mechanics vary by lender, but the general pattern looks like this: the lender orders a separate appraisal of the raw land, subtracts any liens against it, and credits the resulting equity toward the total project's down payment requirement. Depending on the program, that can meaningfully reduce or even eliminate the cash you need to bring to closing.
[Typical down payment: 10-20% of total project cost, varies by lender and program] — land equity is often the fastest way to hit that number without touching savings.
Rural Site Work
Site work considerations for rural land
Barndominiums are often built on acreage that doesn't come with the utilities a suburban lot would already have. Before a foundation gets poured, lenders want to know how the site will actually support a residence:
- Road access — is there an existing driveway or easement, or does one need to be cut and graded?
- Utility hookups — proximity to power lines, or the cost of running new service to the site
- Well and septic — permitting, drilling, and installation where municipal water and sewer aren't available
- Grading and clearing — tree removal, drainage, and pad preparation ahead of the foundation draw
On most land-and-build packages, these site-work costs can be rolled into the total project financed rather than paid separately out of pocket — but the scope and cost needs to be documented up front, since it directly affects the appraised as-completed value the loan is sized against.
Who It's For
Built for buyers still finding their land
- Buyers who haven't purchased land yet and want to bundle the whole process
- Borrowers who found the right acreage but need financing that treats land and structure as one project
At a glance
One closing, one set of paperwork, one set of closing costs — for both the land purchase and the construction loan.
Works with raw land, unimproved acreage, or lots that need meaningful site prep before a foundation can go in.
Converts to permanent financing once your build is complete — or pair it directly with our Construction-to-Permanent program for a single closing straight through move-in.
Found your land, or still looking?
Either way, tell us about your project.
Questions
Land + build package FAQ
Can I use land I already own as part of my down payment?
On many programs, yes — the appraised value of land you own free and clear (or your equity in it) can count toward your down payment or loan-to-value calculation. This varies by lender.
What if the land needs site work before construction can start?
Site prep — clearing, grading, well and septic, utility hookups — can typically be included in the total project cost financed under the package, rather than paid for separately out of pocket.
Does the land need road access or utilities already in place?
It depends on the lender. Some programs finance land with limited or seasonal access; others require utilities or an easement already established. We help match you with a lender based on your specific parcel.
What if my land isn't paid off yet?
Land that still carries a mortgage or lien can sometimes still work — the lender typically looks at your remaining equity (appraised value minus what's owed) rather than requiring the parcel to be free and clear. How much of that equity counts toward your down payment depends on the specific lending program.
Can well and septic installation be financed as part of the package?
On most land-and-build programs, yes — well drilling, septic system installation, and permitting costs can typically be rolled into the total project cost financed, rather than paid out of pocket separately before construction begins.
Related Programs
