Your seller wants to close in two weeks. A bank wants an appraisal, and a raw land appraisal can take weeks by itself. That gap is where a lot of good land deals die.
A no appraisal land loan closes the gap. Here is how it works, how we value land without an appraiser, and how much you can borrow.
What is a no appraisal land loan?
A land loan where the lender sets the value from its own review of recent land sales instead of ordering an appraisal.
The lender still values the land. It just does the comp work itself, in days, instead of waiting on an appraiser. That is how private land lenders can quote in a day and close in about a week. Our hard money land loans work this way: no appraisal, no points at closing, and a close in about 7 days.
Need a land loan without an appraisal?
$30K to $1M, 20% down, no appraisal, no points at closing, close in about 7 days. Written quote in 24 hours.
Get a Free QuoteHard Money Land LoansWhy do banks require an appraisal and private lenders skip it?
Banks need an appraisal to meet their rules. Private lenders who know land can do the same comp work themselves, faster.
Raw land is hard to appraise. There is no income and no building, so an appraiser leans on recent sales of similar land, the same sold comps a land lender already studies. The appraisal adds weeks and cost without adding much a land lender does not already know. The other problem: an appraisal often misses the discount you negotiated. If you are buying below market, you want a lender who values the land at what similar land sells for, not at your contract price.
How do you value land without an appraisal?
From recent sold comps near the parcel, adjusted for how fast those parcels sold, access, and anything that limits a buyer.
- Sold comps, not listings. Recent sales of similar size land near the parcel. Asking prices do not count.
- Market time. How long those parcels sat, and how many took price cuts.
- Competition. How many similar parcels are for sale right now.
- The parcel itself. Legal access, flood zone, wetlands, slope, and whether it is at least 2 acres.
- Your contract price. We cap the loan by what you pay, not just what the land is worth.
The same method, applied to lots, is in how lenders value subdivision land.
How much can you borrow with no appraisal?
On a purchase, up to 65% of value, never more than 80% of the price. On a cash out, 50% of the lower of value or what you paid.
| Deal | How much we lend |
|---|---|
| Purchase | Up to 65% of value, capped at 80% of the purchase price |
| Cash out on land you own | 50% of the lower of value or what you paid |
| Subdivide, plat records at closing | Up to 80% of the purchase price |
| With cross collateral | Up to 100% of the price, pledging one other property |
Example: you buy land worth $100,000 for $70,000. 65% of value is $65,000, and 80% of the price is $56,000. The loan is the lower number, $56,000, and you bring $14,000. Run the cost on the land loan calculator. More on land equity loans and cross collateral.
What do you need to send for a no appraisal land loan?
The signed purchase contract, the parcel number or address, and your resale plan.
- A signed purchase contract. We need one to quote any purchase.
- The parcel number (APN) or address, and the acreage.
- Your resale plan: cash sale, owner financing, or a split.
- Your own comps, if you have them. They speed up the review.
We lend to LLCs and corporations only, for business purposes. See land loan requirements for the full list.
When does a no appraisal lender say no or lend less?
When there are no good sold comps, no legal access, or a problem a buyer would see, like flood zone or wetlands.
Skipping the appraisal does not mean skipping the review. If similar land has not sold nearby, we have nothing solid to value it against, and we lend less or pass. The same goes for land without legal access, land mostly in a flood zone or wetlands, parcels under 2 acres, and states we do not lend in: CA, AZ, NV, NY, NJ, ND, SD, and VT.
Frequently Asked Questions
Can you get a land loan without an appraisal?
Yes. Private land lenders like Damen Capital value vacant land from recent sold comps instead of ordering an appraisal, which lets them quote in 24 hours and close in about 7 days.
How do lenders value land without an appraisal?
From recent sold comps of similar land near the parcel, how long those parcels took to sell, how many similar parcels are listed now, and the parcel itself: access, flood zone, wetlands, and size.
How much will a lender loan on land with no appraisal?
Damen Capital lends up to 65% of value on a purchase, never more than 80% of the price, and 50% of the lower of value or what you paid on a cash out.
Is a no appraisal land loan more expensive?
Not necessarily. Appraisals cost money and time. Compare the full cost: rate, points or exit fee, closing costs, and minimum interest.