Land loans are one of the most difficult financing categories in commercial real estate — and one where most conventional lenders simply say no. Banks are reluctant to lend on raw land because there is no income stream to service the debt and liquidating collateral in a foreclosure scenario is far more challenging than selling an income-producing property. Commercial Loans of Texas has been financing land purchases and development parcels throughout Texas since 1998. We understand that land is where every development project starts, and that well-located, well-priced land with a viable development plan can be an outstanding investment. Our land loan programs cover raw land, commercial lots, infill development parcels, agricultural land with commercial conversion potential, and entitled development sites ready for construction. We lend on land throughout Texas — major metros, secondary markets, and rural areas with legitimate development demand. No tax returns required. Asset-based underwriting focused on the land’s value and the borrower’s exit plan. Call 877-895-3634 or apply online to discuss your Texas land loan today.
Texas Land Loan Programs
- Raw Land Loans: 10 to 14% interest rate, 50 to 60% LTV, 12 to 24 month terms. For unimproved land with no utilities or entitlements. LTV is conservative to reflect the illiquid nature of raw land collateral.
- Commercial Development Land: 10 to 14%, 55 to 65% LTV, 12 to 36 months. For parcels with existing entitlements, zoning approvals, or infrastructure in place. Higher LTV than raw land reflects reduced development risk.
- Infill Development Lots: 10 to 13%, 60 to 65% LTV, 12 to 24 months. Urban and suburban infill lots in established neighborhoods with demonstrated market demand for new construction. Smaller lot sizes and strong comparable sales support higher advance rates.
- Agricultural / Ranch Land with Commercial Potential: 10 to 14%, 50 to 60% LTV, 12 to 36 months. Texas ranch and agricultural land being repositioned for commercial, industrial, or residential development. Exit must be clear — typically subdivision, sale, or construction.
- Land Acquisition Plus Construction: Phase 1 finances the land at 50 to 65% LTV; Phase 2 rolls into a construction loan at 65 to 70% LTC upon permit issuance. Provides a clear financing path from raw land through completed building.
2026 Texas Land Loan Rate Table
| Loan Type | Rate | LTV | Term |
|---|---|---|---|
| Raw Land | 10-14% | 50-60% | 12-24 months |
| Entitled Development Land | 10-14% | 55-65% | 12-36 months |
| Infill Development Lots | 10-13% | 60-65% | 12-24 months |
| Agricultural / Ranch Reposition | 10-14% | 50-60% | 12-36 months |
| Land + Construction (Phase 1) | 10-14% | 50-65% | 12-18 months |
Types of Texas Land We Finance
We finance commercial land throughout Texas including: commercial development parcels in major metros (Houston, Dallas, Austin, San Antonio, Fort Worth), suburban infill lots in fast-growing areas like Frisco, McKinney, Cedar Park, New Braunfels, and Pearland, raw land in rural Texas markets with legitimate development demand, industrial land in logistics corridors (Alliance, South Dallas, Port of Houston area), retail pad sites and outparcels, multifamily development land in high-demand housing corridors, and agricultural land being repositioned for residential or commercial subdivision. We do not finance pure agricultural land intended to remain in farming or ranching use.
What Makes a Good Texas Land Loan Candidate
The strongest land loan scenarios share several characteristics. Location in a market with demonstrated demand for the type of development planned — residential subdivision in a high-growth suburb, commercial development near a major employer or thoroughfare, industrial land near port or rail infrastructure. Clear zoning or a realistic path to rezoning. A specific development timeline and exit strategy — either sell the land to a developer, develop it yourself, or hold and sell individual lots. An experienced borrower or development team. And equity of at least 35 to 50% in the deal, since land loans max out at 50 to 65% LTV.
Qualification Requirements for Texas Land Loans
Land loans are evaluated primarily on the land’s value and the borrower’s development plan and exit strategy. Credit scores are reviewed but no minimum is required for hard money land programs. LTV is the primary constraint: 50 to 65% depending on land type and entitlement status. No tax returns required — asset-based underwriting. Borrower must demonstrate a viable exit strategy: sell to developer, proceed to construction, or subdivide and sell lots. Entity ownership (LLC) strongly recommended. Minimum loan amount $150,000.
How to Get a Texas Land Loan
- Contact us: Call 877-895-3634 or apply online with the parcel address or legal description, current zoning, acreage, purchase price or estimated value, and your development plan.
- Land review: We evaluate location, comparables, entitlement status, and your exit plan. Term sheet issued within 48 to 72 hours for qualified parcels.
- Appraisal: Land appraisal ordered — typically 7 to 14 days. Land appraisals are more complex than building appraisals because comparable land sales can be scarce.
- Close: Land loans typically close in 10 to 21 days from appraisal completion. No construction draws — full loan amount at closing for land acquisition.
Frequently Asked Questions — Texas Land Loans
Why do conventional banks refuse to make land loans?
Conventional banks avoid land loans for several reasons: land generates no income to service debt, land values are more volatile than income-producing property values, and selling land in foreclosure is slower and more uncertain than selling an income-producing building. Private lenders like Commercial Loans of Texas fill this gap by accepting higher risk in exchange for higher interest rates (10 to 14%) and lower LTVs (50 to 65%). The trade-off is fair — you get the capital you need to control a valuable piece of Texas real estate; we get appropriate compensation for the risk.
What is the difference between entitled and unentitled land?
Entitled land has received government approvals for specific development — zoning approval, site plan approval, subdivision plat approval, or some combination. Entitlements reduce development risk significantly because the regulatory hurdle has already been cleared. Unentitled raw land carries entitlement risk — the rezoning might be denied, the site plan might require costly revisions, the subdivision process might be delayed. Lenders reflect this in LTV: entitled land typically qualifies for 55 to 65% LTV while raw unentitled land is typically capped at 50 to 60%.
Can I get a land loan in rural Texas?
Yes, but underwriting is more conservative in rural markets where comparable land sales are scarce and the borrower base for resale is thinner. We lend on rural Texas land with a clear development or sale exit — typically 50 to 55% LTV in rural markets versus 60 to 65% in suburban markets. The borrower’s exit plan must be credible: simply “holding for appreciation” is not a sufficient exit strategy for a 12 to 24 month land loan.
Can I use a Texas land loan to buy agricultural land and convert it to commercial use?
Yes. Texas has a long history of agricultural land being converted to commercial, industrial, or residential development use as cities expand. We finance agricultural land acquisitions where the borrower’s plan is commercial conversion — whether that means rezoning and subdivision, industrial development, or residential development. The key is a credible timeline and a market that supports the proposed new use.
Do land loan lenders care about environmental issues?
Yes. We require a Phase I Environmental Site Assessment for commercial land loans, particularly on land with any prior industrial, agricultural chemical, or fuel storage use. Phase I ESAs typically cost $1,500 to $3,000 and take 7 to 14 days. If Phase I reveals recognized environmental conditions (RECs), a Phase II investigation may be required before we can fund. Clean sites close faster and without environmental conditions limiting LTV or loan amount.
Need a Texas land loan? Call 877-895-3634 or apply online at Commercial Loans of Texas. We have been financing Texas land since 1998 — raw land, development parcels, infill lots, and everything in between. No tax returns, fast decisions, statewide lending.