So we have finally decided to pull the trigger on buying a lot for a beach house. The plan is to buy the lot now and build the house in 3-5 years. I have never purchased just an empty lot before. What do loans look like for this when it comes to down payment, length of loan etc? We are looking at lots that have water/power etc so not just raw land. Thanks in advance!

I'm sure someone' more knowledgeable than me will be along soon, but you're looking for an improved land loan. Down payment is going to be at least 15%, not sure on rates compared to prime

Try RBFCU.

https://www.rbfcu.org/home-loans-realty/mortgages/land-loans

Most community banks and credit unions will do loans like these. I would expect, at a minimum, 15% down with a max 25 year amortization period with rates somewhere around WSJ prime. Big caveat…I'm expecting a credit contraction later this year. Expect it to be a lot more difficult to get a loan in 6-12 months than it is today.

And I'm talking about a credit crunch with these types of loans, not necessarily residential mortgages.

I think you're right. The market for lot loans was already a tight one but it's getting tighter. Lots aren't desirable collateral because the market is a much smaller one. I've closed more lot loans this year than I usually do in 2 years primarily because the lender market is contracting.

Lot I did two years ago I put down 15% and the rate was 1.5% higher than the home rate at the time and I did 15 years on the loan. I went with a smaller Texas bank versus a larger national bank..