Buying or owning land can be one of the most strategic real estate moves you make—if you can get financing. But that’s the catch. Whether it’s raw land, agricultural acreage, development property, or an oddly zoned parcel, traditional lenders don’t like dirt. At least, not by itself.
If you’ve tried getting a bank loan on land, you’ve probably heard some version of: “Come back once there’s a house or income on it.”
That’s where Hopkins Financial Services comes in.
We specialize in private land loans—designed for situations banks avoid. Whether you’re a developer, investor, rancher, or land-rich owner looking to unlock equity, we offer financing solutions tailored to real property opportunities, not just cookie-cutter lending criteria.
Why Traditional Banks Don’t Like Land Loans
Conventional lenders are often risk-averse when it comes to vacant land. Here’s why:
1. No Income Stream
Unlike a rental property, land doesn’t generate monthly revenue. That makes it riskier in the eyes of traditional underwriters.
2. Uncertain Market Value
If a parcel is located in a rural area, or not yet subdivided, the appraised value may vary widely depending on future use—and most banks don’t want to guess.
3. Speculative Risk
Zoning approvals, entitlements, utilities, access roads—these can all delay development or resale, especially in early-phase projects.
4. Extended Hold Time
Land typically has a longer investment horizon. It might take years before a property is built out or sold, and banks aren’t often interested in long-term land holds without predictable cash flow.
Because of these challenges, banks often require:
- 40–50%+ down payments
- Full documentation of borrower income and assets
- Entitlements or engineering already in place
- A business plan or proof of future income stream
Result: Good land sits idle, or deals fall apart—simply because traditional financing isn’t built for this asset class.
How Hopkins Financial Helps Fund Land Deals
At Hopkins Financial, we take a different approach.
We’ve built our business helping borrowers finance the types of real estate that don’t fit in conventional lending boxes. That includes raw land, transitional-use parcels, infill lots, rural acreage, agricultural land, and development ground.
We don’t require income streams or entitlements to start. Instead, we evaluate:
- Current appraised value or market comps
- Borrower equity and exit strategy
- Location and surrounding growth trends
- Any improvements like roads, fencing, wells, or power access
- The land is at least zoned or eligible for some type of building permit.
Common Land Loan Structures We Offer:
Land acquisition loans (including seller-financed payoffs)
Cash-out refinance on free-and-clear land
Bridge financing during entitlement or platting
Cross-collateralized loans using land + improved property
Lot development capital for engineering, access, and site work
We fund loans from $50,000 to $5,000,000+, depending on property type and borrower profile. Typical loan-to-value (LTV) ratios range from 50% to 70%, based on location, zoning, and borrower equity.
Ideal Borrowers for Private Land Loans
You might be a good candidate for private land financing if:
You’re a developer tying up ground before platting
You’re a rancher acquiring adjacent parcels
You’re an investor buying land in a path-of-growth area
You want to unlock equity in land you already own
You’ve inherited or acquired legacy land and need capital
We lend across Idaho, Utah, and other select states, subject to licensing and property type. Whether your land is 10 acres of pasture, 50 acres zoned commercial, or 100 acres waiting on plat approval, Hopkins can help get the deal funded.
Real Example: Bridging the Gap to Development
One of our clients in southern Idaho owned 100’s of acres just beyond city limits, adjacent to booming residential neighborhoods. The parcel had no income—but was in the perfect position for acreage lot development.
He needed short-term capital to cover:
- Engineering plans
- Roadwork
- County approvals and entitlements
Hopkins funded multiple land loans based on the current value of the dirt. That gave him the cash and time he needed to increase the property’s value and get it ready for development. Soon, that “idle land” will become a high-end neighborhood.
Why Private Land Loans Are Worth It
Land is opportunity—whether you’re holding, flipping, farming, or developing. But capital is key, and when banks say no, private lending opens the door.
With a private land loan from Hopkins, you can:
Act quickly on off-market or time-sensitive deals
Reposition land while waiting on permits or zoning
Access equity without selling or giving up ownership
Bridge the gap from raw dirt to finished development
Let’s Turn That Dirt Into Opportunity
At Hopkins Financial Services, we’ve funded millions in land loans across the West and beyond. From farmland and timber plots to subdivision ground and commercial pads, we know how to underwrite what others ignore.
Contact us today to talk through your land loan scenario. No income? No problem. Just dirt? We’ll take a look.
Hopkins Financial Services
Private Money for Land, Lots, and Legacy Properties
Idaho-Based | National Reach
info@hopkinsfinancial.com | [ 208-555-1234]
www.hopkinsfinancial.com
Related Topics You Might Like (Visit our website Blog):
How Bridge Loans Work for Land Development
Creative Cross-Collateralization: Using Multiple Properties to Secure a Loan
Alternative Property Financing | Loans for Unique & Rural Assets
