When you want to build your Florida dream home, the first step is locking in the right location. With lot loans from Seacoast Bank, you can access the financing you need to secure the address of your future home.
But before you take out a lot loan, you’ll want to understand how it works — including how it differs from traditional mortgages, what you’ll need to apply and what to expect along the way. You can secure the right location now, then move into construction when you are ready with help from local mortgage specialists who support a smooth and fast closing process.
Lot loans allow you to finance the purchase of a buildable piece of land so you can secure the right location before you are ready to start construction. For many buyers this type of financing is an effective first step because it lets you purchase the lot now and prepare your plans, budget and timeline for a future home.
Seacoast lot loans work differently from a traditional home loan. These loans require a larger minimum down payment because the maximum loan-to-value is 75 percent, and they follow a 15-year term on a 5/6 Adjustable Rate Mortgage that cannot be converted to a fixed rate and is not assumable.
As part of the approval process, you will need a vacant land appraisal, and in most cases a boundary survey, along with confirmation that the lot has residential zoning and legally recorded ingress and egress. A standard flood determination may also be required depending on the appraisal. Seacoast does not require development plans or confirmation of utilities.
These loans are designed for buyers planning to build a primary or second home within the next three to five years. Seacoast can finance up to $650,000 for residential lots up to 5 acres if the property is buildable and has legal access, giving you time and flexibility to move into construction when the moment is right.
A lot loan and a construction loan serve different purposes in the homebuilding journey even though many buyers use both as part of a long-term plan. A lot loan helps you secure a buildable homesite now while giving you time to prepare for construction. Seacoast lot loans are designed for buyers planning to build their primary or second home within three to five years and offer flexibility in timing so you can finalize architectural plans, choose a builder and prepare your finances before breaking ground.
A construction loan on the other hand, provides the funds needed to build the home itself with draws released throughout the project as construction progresses. Seacoast’s construction loans cover the full build process, from foundation through completion, and include features like fixed or adjustable rates, dedicated loan specialists and fast local decision-making to keep projects on schedule.
Using a lot loan first can offer buyers several advantages. It allows you to secure the right location now and move forward with construction later without the pressure of an immediate build timeline. When you return to Seacoast for your construction loan the application fee is waived, which helps reduce overall project costs.
Getting a lot loan is similar to getting a home loan. You’ll start with an application that includes information about your identity, financial situation and the property you’re looking to buy. Before approving your loan and funding your purchase, your lender will usually need additional documentation, including, but not limited to, a signed purchase agreement or land survey.
When selecting a property, focus on a buildable residential lot that is zoned for residential use and has legally recorded ingress and egress, which helps ensure the site is appropriate for future home construction. Commercial and agricultural zoning are not permitted.
An appraisal is required for all lot loans through Seacoast Bank and a boundary survey is typically needed to confirm legal access, with limited exceptions for platted subdivisions or PUDs (Planned Unit Developments). A flood determination is required if there are livable structures on the subject lot. Flood insurance requirements may apply based on the identified risk zone. Seacoast lot loans are designed for buyers planning to build a primary or second home on a residential lot.
When you apply for a lot loan, your lender will want to verify your financial situation and credit history. They may ask for your tax returns from the past two years, as well as recent pay stubs, bank statements and any liabilities. The documentation required from Seacoast Bank depends on the type of income being used and may not require tax returns.
Lenders may also ask for additional documentation, including proof of liquid reserves or a down payment gift letter (if applicable).
When you are ready to move forward, choosing a lender with experience in Florida lot purchases can make the process smoother. As a community bank, Seacoast offers local expertise and a dedicated team that understands residential lot requirements in our markets. While specific documentation may vary based on your borrower profile and the property, the application process generally follows five key steps.
1) Get pre-qualified: Before you put in an offer on a piece of land, you’ll want to get pre-qualified to show sellers you’re a serious buyer. During this part of the process, your lender will ask you to share certain information about yourself and your financial situation, including copies of your tax returns, pay stubs, bank statements and more.
2) Submit your application: When you submit your application, you’ll provide any additional information requested by your lender, as well as a signed purchase agreement and details about the property you intend to buy.
3) Evaluate the property: The evaluation stage includes a vacant land appraisal and in most cases, a boundary survey to confirm property lines and legal access. The lot must be zoned residential, have legally recorded ingress and egress, and may require a flood determination based on the appraisal notes regarding any structures on the property.
4) Conduct a title search: Since lenders usually require a clear title before approving a lot loan, the title company typically orders a title search to verify that the property doesn’t have any liens or other competing ownership claims.
5) Wait for conditional underwriting approval: During underwriting review, your lender may request additional documentation. Once your loan is conditionally approved, you’ll receive a closing disclosure at least three business days before your scheduled closing date.
After you sign off on the closing disclosure and the three-day waiting period has passed, it’s time to close on the property. Your lender will wire the loan amount to the title company, and you’ll be responsible for paying the amount listed under “cash to close” on the closing disclosure. Remember, this is when you pay for mandatory closing costs, such as documentary stamp taxes and recording fees, both of which apply to Florida lot purchases.
Getting approved for a lot loan in Florida depends on key factors such as your financial situation, the type of property you want to buy, the buildability of the property and specific lender requirements. These factors include:
Ready to take the next step? Contact a mortgage loan officer to find out about Florida lot loans.
Building your Florida dream home begins with finding the perfect plot of land. Choosing a local lender like Seacoast Bank can help simplify the process of applying for a lot loan. Our mortgage loan officers are here to help you secure the site of your future home — so you can build when the time is right.
Topics: Homeownership, Understanding Mortgages
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