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5 Best Land and Lot Loans in Michigan

Key Terms

Land loans can make more expensive areas, including lakefront neighborhoods.
Until you build on a lot, you will not need to pay for any insurance.
In some cases, the purchased land can be used as collateral on a construction loan when you’re ready to build.

Home to the longest freshwater coastline in the U.S. and with a layout that means you’re never more than 85 miles from a lake, Michigan is a dream for those who love the outdoors. It’s also great for those who love quality universities, hospitals and, music, courtesy of Detroit.

Unfortunately, owning a home in Michigan is too expensive for many right now. According to the U.S. Census Bureau, Michigan has 55,608 square miles of land. Even with all those miles, however, it can be difficult to find the right home.

With a Michigan land loan, you can secure a property in your favorite neighborhood and build a home that really gives you what you want. Unlike Michigan construction loans, which finance a construction project specifically, a land loan, or “lot loan,” is just for the land and gives you some flexibility as to when you start a build.

With the value per acre of land in Michigan at $23,765.04, per the New Estimates of Value of Land of the United States, many Michganders might discover that this approach can get them a bespoke home that is well within their budget.

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Benefits of getting a land loan in Michigan

What are some of the benefits of obtaining a Michigan lot loan, as they are sometimes called? A land loan gives you the following advantages:

With a land loan, you can take your time and build a home on your own schedule.
Because of land financing, you can construct a completely customized home.
Building a home from the ground up can sometimes be easier and less expensive than remodeling an existing one.
You will not be required to pay for any land insurance until your home is built.

Naturally, a land loan also allows many buyers to purchase property in areas they would not be able to afford otherwise, including popular lakefront areas. Michiganders who never thought they could afford a vacation home or fishing cabin might find it more manageable with a land loan. Finding the right mortgage lender or land loan lender is not always easy, but it helps to know who provides these different term loans with personalized service.

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5 Best Michigan land loan lenders

If you’re ready to learn more about the best land loan lenders in Michigan, here are the top options we’ve found through our research.

1. Mercantile Bank

Based in Michigan, Mercantile Bank provides a number of banking, loan, and financial services to members in many parts of Michigan and Cincinnati, Ohio. Mercantile bank offers a number of products to help obtain property and for construction, including lot loans, land loans, and pole barn loans.

We reached out to Mercantile Bank to discuss its land loan program, which you can read about below:

Lot Loan: If you are purchasing less than 10 acres, you can obtain a lot loan. This property does not need to be in a subdivision.
Land Loan: Land Loans are for parcels over 10 acres. These loans require a larger down payment.
Pole Barn: Not quite land you’re looking for? Found that pole barn to store your toys? We can help finance these as well.