Mortgage Myth #5: You Can’t Use a Construction Loan Unless You Already Own the Land

You found the perfect lot. You’re excited to build. But someone — maybe even your lender — told you, “You can’t do that until you own the land first.”

Not true.

With the right mortgage structure, you can finance the land and the build together — in one streamlined transaction.

How This Works

We offer both One-Time Close and Two-Time Close construction loans that allow you to:

• Purchase the lot
• Build the home
• Secure long-term financing
• …all as part of the same loan package.

Yes — even if the land isn’t already yours.

Loan Options That Support This:

• VA OTC (0% down in most cases)
• USDA OTC (0% down in eligible areas) - COMING SOON TO LUMINATE
• FHA OTC (3.5% down)
• Conventional OTC (5% down and up)
• Standalone Lot Loans (developed or undeveloped land)

Key Advantages:

• Finance land + build in one move
• Lock your rate upfront with float-down options
• Eliminate the need to cash-purchase land
• Close on land now, build later (in some cases)

Who This Helps:

• First-time builders
• Families priced out of existing inventory
• Buyers who found their dream lot
• Anyone comparing build vs. buy options

Why This Myth Hurts Buyers:  Too many people sit on a great piece of land, waiting for “the right time” to buy it in cash — when they could be building equity immediately with the right loan structure.

Let’s solve that.

Explore your build options now:

• Download our Construction & Renovation Guide → Found Here
• Or book a no-pressure strategy call today using this link.
• Want to see other myths, check them out here.