Is a Lot Loan Right for You?

Ready to buy the perfect piece of property for your dream home, but not quite ready to build? You should consider obtaining a lot loan, A lot loan allows you to secure the property now, while giving you the time to plan and prepare for your dream home.

Our lot loan products are used for someone who is purchasing residential land, for their future primary residence or second home. Lot loans often require a larger down payment, because they are a higher risk loan for the institution. With OneAZ Credit Union, we require down payments as low as 25% (lhe down payment requirement may vary depending on the purchase price of the lot).

What documentation will the Credit Union need, and is the property eligible for financing?

  • Some of the requirements the Credit Union will have are as follows:Does the property have water, power, and access to the lot OR have documentation the improvements are available nearby?
  • Does the property require a septic? lf so, we will need to have an acceptable percolation test (this should be done during your inspection period).
  • What’s the acreage of the property? The Credit Union will lend on lots up to 10 acres.
  • lf there’s a wellon the property, does it have a Shared WellAgreement?

What types of products are offered for lot loans?

OneAZ Credit Union offers a 3 or 5-year lot loan program. The rate is locked for the term of the loan (3 or 5 years) and amortized over 25 years, making your payments very affordable. During this time, you can work with your builder on the plans and specifications of your home, in coordination with your loan officer to get your construction loan secured. At the close of your construction loan, your lot loan balance will be paid off.

The loan process is the same as if you were purchasing a home. We will need to collect a fully completed application along with supporting documentation (paystubs, W2’s, bank statements, retirement statements and if self-employed, tax returns). Everyone’s situation is different, so these items are the minimum items that will be required. Pre-approval is recommended for the potential buyer, so they know where they stand financially prior to submitting an offer. Typically the entire loan process from start to finish will take approximately 45 days, depending on the length of the inspection period.

Janine Grimes Mortgage

Loan Officer

OneAZ Credit Union

520-954-2199 (mobile)


Rick’s Note

There are several lender’s currently providing lot loans in the Tucson market that range in term from a 2 year, interest only loan to a fully amortized 20 year loan and options in between. Rates, fees and costs range widely depending on the chosen program and change periodically . At this time, One Az Credit Union’s lot loans have the following rates, prices and fees: 3 yr. loan rates are from 4.25-4.5% and 5 year loan rates vary from 4.5-4.75% ( these are the lowest that I’m aware of in our marketplace). On all loans they charge the consumer an Appraisal Fee of $485, an Underwriter Fee of $400 and a Discount Fee, depending on the interest rate desired, of between 1/4%-1% of the loan amount. In my experience, all lenders have similar fees. Many also charge an Origination Fee of 1%-1 1/2% of the loan amount . One Az Credit Union does not charge an Origination Fee.

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