You found a good piece of land. The seller wants to close in 30 days. Your bank wants 60 days, an appraisal, and two years of tax returns, and it may still say no. What do you do?
You call a bridge lender. A bridge loan "bridges" the gap between buying the land and selling it, splitting it, or refinancing it. We are a vacant land bridge lender, and land is all we lend on. Here is how it works and what it costs.
What is a vacant land bridge loan?
A short term, interest only loan that lets you buy land fast and pay it off when you sell or refinance.
A bridge loan for land, also called a vacant land bridge loan, funds the purchase of raw land in days, not months. You pay interest only while you hold the land. When you flip it, sell the lots, sell on terms, or refinance, you pay the loan off. The lender looks at the land and the deal first, not just your tax returns.
Most bridge loans on land run 6 to 24 months. Ours has a 2 year term. The flips in our loan case studies paid off in 6 to 14 months.
Need a vacant land bridge lender?
$30K to $1M, 20% down, no appraisal, close in as little as 7 days. Written quote in 24 hours.
Get a Free QuoteSee Hard Money Land LoansWhat does a vacant land bridge lender do differently?
It values the land, moves fast, and plans around your exit.
Most bridge lenders lend on houses and commercial buildings. They do not know how to value raw acreage, so they either say no or price the loan like it is a problem. A land bridge lender knows the land buyer pool, checks access and utilities, and sizes the loan to the land's value and your plan to sell.
- Values land by the acre from real land comps
- Checks legal access, flood zones, and wetlands up front
- Closes in days so you do not lose the deal
- Offers partial releases so you can sell lots one at a time
In my experience, the lender's land knowledge matters more than the rate. A lender that does not understand land will kill a good deal with slow questions.
What are the terms on a land bridge loan?
Ours are $30K to $1M at 14% to 16% interest only, 20% down, no appraisal.
Bridge loans on land cost more than bank loans because there is no building and no rent to back the loan. Here are our standing terms. Other private land lenders often charge points up front on top of the rate, so compare the total cost, not just the rate.
| Term | Damen Capital |
|---|---|
| Loan amount | $30K to $1M |
| Rate | 14% at $100K and up, 16% under $100K, interest only |
| Down payment | 20% (0% with one extra property as cross collateral) |
| Max loan to value | 65% (100% with cross collateral) |
| Term | 2 years |
| Fees | $600 closing, 2% exit fee at payoff, $25 a month servicing, no points at closing |
| Minimum interest | 5 months |
| Appraisal | None |
| Close | About 7 days |
| Property | Vacant land, 2 acre minimum, legal access |
| Borrower | Business purpose only, personal guarantee |
| Not in | CA, AZ, NV, NY, NJ, ND, SD, MT, HI, VT |
Rule of thumb: compare total dollars, not rates. Run your own numbers on our land loan calculator.
What does a land bridge loan cost?
On a $100,000 loan held 6 months, about $9,750 all in.
That is 6 months of interest at 14% ($7,000), the 2% exit fee ($2,000), the $600 closing fee, and $150 in servicing. Hold it longer and interest grows by about $1,167 a month. Pay off in 3 months and you still owe 5 months of interest, collected at payoff.
| Cost | Amount |
|---|---|
| Interest (6 months at 14%) | $7,000 |
| Exit fee (2%) | $2,000 |
| Closing fee | $600 |
| Servicing ($25 x 6) | $150 |
| Total | $9,750 |
If you buy land at a discount and resell it at market, that cost is a small slice of the profit. If the deal only works at a bank rate, it is not a bridge loan deal.
When should I use a bridge loan on land?
When speed wins the deal or your plan is to sell within two years.
Bridge loans fit short holds. Here are the deals we fund most:
- Land flips. Buy under market and resell. See land flip financing.
- Subdivides. Buy a tract, split it, sell the lots with partial releases.
- Selling on terms. Buy, sell on owner financing, and sell the note to pay us off, or wrap our loan.
- Zero down. Pledge one other property you own with cross collateral and we can fund 100% of the price.
- Farmland. Auctions, estates, and 1031 deadlines. See farmland bridge loans.
If you plan to hold land for five years, I would avoid a bridge loan. Pay cash or use a long term lender.
Bridge loan or bank loan for land?
A bank is cheaper if it says yes in time. A bridge lender is faster and more likely to say yes.
Banks lend on raw land less often than people think, and when they do they usually want a big down payment, an appraisal, full income paperwork, and a long timeline. A bridge loan costs more per month but closes in days and funds the deal the bank passes on.
| Land bridge loan | Bank land loan | |
|---|---|---|
| Close | About 7 days | 30 to 60+ days |
| Appraisal | No | Yes |
| Income paperwork | Light | Full tax returns |
| Raw land | Yes, that is all we do | Often no |
| Rate | 14% to 16% | Lower |
| Best for | Flips, splits, short holds | Long holds |
If your bank already turned you down, read what to do when the bank denies your land loan.
What does a land bridge lender not fund?
We fund the land purchase only.
We do not fund construction, entitlements, site work, or soft costs. We do not lend on commercial property, on land under 2 acres, or for personal use such as building your own home. And we do not lend in CA, AZ, NV, NY, NJ, ND, SD, MT, HI, or VT. Knowing this up front saves you a week.
How do I get a quote?
Send the parcel, the price, and your plan. We send a written quote in 24 hours.
Use the instant quote or apply. Tell us how you plan to exit: flip, split, sell on terms, or refinance. A clear exit is the fastest way to a yes.
Frequently Asked Questions
What is a bridge loan for land?
A short term, interest only loan used to buy vacant land quickly and pay off when you sell, subdivide, or refinance. Damen Capital lends $30K to $1M on land with no appraisal and closes in as little as 7 days.
What is a vacant land bridge lender?
A private lender that makes short term loans on raw land and understands how to value it. Damen Capital is a vacant land bridge lender that lends only on land.
How long is a land bridge loan term?
Damen Capital land bridge loans have a 2 year interest only term with a 5 month minimum interest. You can pay off any time.
How much does a land bridge loan cost?
On a $100,000 loan held 6 months at 14%, about $9,750: $7,000 interest, $2,000 exit fee, $600 closing, and $150 servicing.
Do land bridge loans need an appraisal?
Not with Damen Capital. We value the land ourselves from land comps and close in as little as 7 days.