Land Loans for Tiny Home, Cabin, and Glamping Rentals

Do you finance land for tiny homes, cabins, or glamping?

Yes, we fund the land. We do not fund the build. We make land purchase loans to investors buying land for short term rentals: a cabin, a few tiny homes, or glamping sites. $30K to $1M, no appraisal, 7 day close, interest only for 24 months. The loan covers the land only. The homes, the site work, and the utilities are paid for separately.

Rental cabins and tiny homes near lakes, parks, and mountain towns are one of the fastest growing ways land investors use raw land. The hard part is getting the land. Banks rarely lend on raw land, and a good parcel near a park or a lake does not sit on the market. We close fast so you get the land. You line up the build money while you plan the site.

Why won't you fund the tiny home or cabin?

We are a land lender. We fund land purchases only. We do not fund construction, homes, site work, septic, wells, power, roads, or soft costs. Build money comes from your own cash or a construction lender. Most construction lenders want to be in first position, so plan on paying off our loan when the build loan closes.

You can start building while our loan is on the land. A cabin or tiny home only adds to the property. Saying this plainly saves you a surprise at the closing table. The loan amount is based on the land alone, and the draw schedule, contractor, and permits for the build are not part of our loan.

Is a rental cabin a business purpose loan?

Yes, when an entity buys the land to run rentals. Not when it is your own getaway. Land bought by an LLC to build and rent short term rentals is a business. Land bought for your own weekend cabin, or for a tiny home you plan to live in, is personal use, and we cannot lend on it. The application asks for your rental plan, so have it ready.

What should I check before I buy land for rentals?

Zoning, short term rental rules, septic, water, power, and access. Many counties ban or limit short term rentals, and some set a minimum house size that rules out tiny homes. Check the county before you sign. Then check septic, water, and power: a perc test, a well or water line, and the cost to bring in power. Legal access is a must.

Rule of thumb: if the county planning office will not tell you in writing that your rental plan is allowed, do not close. We see rental plans die on zoning more than on money.

We need 2 acres or more, legal access, and land that is not mostly wetland or flood zone. We do not fund campgrounds or RV parks. Those are commercial, and we do not make commercial loans. We do not lend in California, Arizona, Nevada, New York, New Jersey, North Dakota, South Dakota, or Vermont.

How much will you lend on rental land?

Our standard is 50% of the land's conservative value, up to 65%, never more than 80% of the price. We value the land from recent sales of similar vacant land in the county, as it sits today. We do not lend on the value of rentals you plan to build. Need less cash in the deal? Pledge another parcel you own free and clear as cross collateral and we can finance 100% of the land price.

See cross collateralization for how the 0% down option works, or run the numbers in the instant land loan quote.

How do I pay off the land loan?

Most borrowers pay us off when the build loan or a long term rental loan closes. Your term is 24 months. That gives you time to get permits, line up a builder, and close a construction loan, which pays us off. Some investors build with cash and then refinance into a long term rental loan. Others change plans and sell the land, which also pays us off.

Think through the exit before you buy. If the build loan takes longer than you think, the 24 month term is your runway. If the rental plan falls through, the land still has to sell for enough to pay us, which is why we lend on the land value alone.

What does the land loan cost?

14% at $100K and up, 16% under, interest only, with a 5 month minimum. Interest is paid monthly starting 30 days after closing. $600 doc fee, 2% exit fee at payoff, $25 a month servicing, no points at closing. If a construction loan pays us off in 3 months, the unpaid months through month 5 are collected at payoff, not at closing.