LAND loans in Kansas & Missouri
Purchasing a lot or acreage is often the first step toward building your new home. Whether you have found a walkout lot in an established neighborhood or acreage with room to grow, a lot or land loan allows you to secure the property now and build when you are ready. Land financing involves additional review compared with a standard mortgage, and Jim will guide you through each requirement, from evaluating the property to planning your construction financing.
Why Finance a Lot or Land Purchase?
Secure the Right Location First
Great building lots in established Johnson County and Kansas City neighborhoods don't stay on the market long. Financing the land lets you claim it before someone else does.
Build on Your Timeline
You don't have to have every construction detail finalized on day one. Owning the lot gives you time to choose a builder, finalize plans, and budget for the home you really want.
A Clear Path to Construction
Many buyers pair a lot loan with a construction loan later. Planning both together from the start can make the move from land to finished home much smoother.
Keep More Cash on Hand
Financing the land instead of paying cash keeps more of your savings available for your down payment, building costs, upgrades, and reserves.
Why Work With Jim Yarrington?
28+ years of mortgage experience — Jim has guided buyers through lot purchases, new construction, and everything in between.
In-house underwriting — First State Bank Mortgage has its own staff of underwriters who know the guidelines, giving you more flexibility and faster answers.
Construction know-how — Our construction management staff helps protect your draws and the flow of money once you're ready to build.
Local to Kansas City — Jim has called the Kansas City area home for nearly three decades and knows the communities on both sides of the state line.
Types of Land We Can Help Finance
Residential Building Lots
Improved lots in a subdivision or established neighborhood, typically with road access and utilities already available. These are usually the easiest type of land to finance.
Raw or Unimproved Land
Land without utilities, road access, or other improvements. Raw land can be financed in some cases, but it generally requires a larger down payment and more review.
Lot Plus Construction
Already working with a builder? Ask about combining your lot purchase with a construction loan so your financing is mapped out from purchase to move-in.
How the Land Loan Process Works
Consultation — Talk with Jim about the property, your building plans, and your timeline.
Pre-Approval — We review your credit, income, and assets so you know what you can afford before you make an offer.
Property Review — The lot is evaluated for zoning, access, utilities, survey, and an appraisal of its value.
Underwriting — Our in-house underwriters verify your documentation and the property details.
Closing — Sign your documents and take ownership of your lot.
Plan Your Build — When you're ready, we'll help you transition into construction financing.
What Lenders Look At for a Land Loan
Down payment — Land loans usually require a larger down payment than a traditional home purchase.
Credit history — A solid credit profile can improve your options and pricing.
Income and debts — Your debt-to-income ratio shows you can handle the payment alongside your other obligations.
The property itself — Zoning, road access, utilities, and soil or perc tests for septic all affect how the land can be financed.
Your plans — Lenders like to see when and how you plan to build.
Common Land-Buying Mistakes to Avoid
Skipping due diligence — Confirm zoning, HOA rules, easements, and building restrictions before you buy.
Assuming utilities are available — Bringing in water, sewer, or electric can add significant cost.
Underestimating the down payment — Plan for a larger down payment than you'd need for an existing home.
Not planning ahead for construction — Talk through your construction financing early so there are no surprises later.
Areas We Serve
Based in Overland Park, Jim helps buyers find and finance land throughout the Kansas City metro, including Johnson County, Olathe, Leawood, Lenexa, Shawnee, Prairie Village, Lee's Summit, and Kansas City, Missouri. First State Bank Mortgage lends in all 50 states, so if your lot is outside the metro, ask us about it.
Land Loan FAQs
How much do I need to put down on a land loan?
Land loans typically require a larger down payment than a standard mortgage. The exact amount depends on the type of land, whether it's improved, and your credit profile. Jim will walk you through your specific options.
Is it harder to finance raw land than a building lot?
Generally, yes. Improved lots with utilities and road access are easier to finance than raw land, which usually requires more review and a larger down payment.
Can I combine my lot purchase with a construction loan?
In many cases, yes. If you're ready to build, ask about pairing your lot purchase with construction financing so the whole project is planned together.
Do I have to start building right away?
Not always. Many buyers purchase a lot now and build later, though requirements vary by loan. Share your timeline with Jim so we can recommend the right structure.
Does First State Bank Mortgage finance land outside Kansas and Missouri?
First State Bank Mortgage lends in all 50 states. Restrictions apply by property type and location, so contact Jim to talk about your specific lot.
Related Loan Programs
Ready to talk about your lot? Call Jim directly at 913-513-2924 or send him a message to get started.