Land acquisition and development
You have a site under contract and need to connect the acquisition with the work that makes it developable. We help separate the purchase requirement from the development budget so the capital request is clear.
LAND ACQUISITION · DEVELOPMENT · FINISHED LOTSLand development loans
Land development loans
From site to finished lots
From a site under contract to a subdivision ready for homebuilders, Stonehaven helps developers arrange capital for land acquisition, site improvements and finished lots. Bring us the project, the budget and the plan for getting repaid.
The short answer
Land development and residential lot financing
Land acquisition and development financing, often called A&D financing, supports the purchase and preparation of land for a business-purpose real estate project. Residential lot financing addresses the lots a developer sells or a builder holds before home construction. Stonehaven is a mortgage brokerage: we help package the project, compare suitable lending sources and work through the financing structure with you.
- Project scope
- Land acquisition, residential subdivisions, horizontal development and finished-lot inventory.
- Financing size
- Share the total project cost and requested financing. We assess the capital need, available equity and repayment plan for each deal.
- Location and structure
- Business-purpose projects nationwide, subject to lender availability and applicable requirements. Recourse and non-recourse requests are reviewed case by case.
Capital for the stage your project is in
Subdivision and horizontal development
You own or control the land and are preparing buildable lots. Present the work in phases, with a clear scope for grading, access, utilities and the other site improvements your project needs.
Finished-lot acquisition and inventory
You are purchasing completed lots, holding inventory for your own builds or selling lots to other homebuilders. We help explain how lot ownership, construction starts and sale proceeds connect.
Compare financing for your development
A bank relationship and a specialty lender can each have a place. Stonehaven helps compare actual proposals against your budget and schedule. These are questions to ask, not promised terms or a ranking of lenders.
| What to compare | Bank financing | Private or specialty financing | Stonehaven’s role |
|---|---|---|---|
| Project stage | Confirm whether the bank will fund acquisition, site work, lot inventory or a combination. | Confirm the specific stages the lender accepts and whether later phases need separate approval. | Present the current stage and identify the next funding milestone. |
| Borrower cash | Ask which costs and land equity count toward the borrower contribution. | Ask about cash at closing, reserves, holdbacks and costs paid outside the loan. | Build a sources-and-uses comparison so the cash requirement is visible. |
| Guarantees | Read the proposed repayment and completion obligations. | Read the same obligations even when the proposal is described as non-recourse. | Identify the terms that need lender clarification and review with your counsel. |
| Closing and draws | Confirm the approval steps, outstanding conditions and draw process. | Confirm the same items and who authorizes each advance. | Help coordinate the information needed to move the financing forward. |
| Lot sales and repayment | Ask for the release schedule and required principal paydowns. | Compare release conditions, extension options and any prepayment terms. | Check how the proposed repayment structure fits your lot-sale plan. |
Transparent assumptions
What a 40-lot development request could look like
A hypothetical example, not a Stonehaven closing or an available loan offer. The developer plans to acquire a site, complete the site work and sell finished lots to builders.
- Planned finished lots
- 40
- Land acquisition
- $1,400,000
- Site-development budget
- $2,600,000
- Soft costs, reserves and contingency
- $800,000
- Total modeled project cost
- $4,800,000
- Requested loan commitment
- $3,360,000
- Requested loan / total modeled cost
- 70% LTC
- Remaining modeled project funding
- $1,440,000
- Assumed lot sales: 40 × $175,000
- $7,000,000 gross
The $3.36 million request covers 70% of the modeled $4.8 million cost. The remaining $1.44 million must be addressed through acceptable equity or another approved source. This percentage is an illustration, not a Stonehaven program limit.
A loan commitment is not the same as cash received at closing. The proposal should show the acquisition advance, development funds held for later draws and any costs the borrower must pay before reimbursement.
The $7 million figure is projected gross sales, not an appraisal, profit or cash available today. A useful stress test asks what happens if fewer lots close on schedule, prices change or additional work is needed.
For a separate repayment illustration, a $175,000 lot sale with an agreed $110,000 principal release payment leaves $65,000 before other closing costs and obligations. That remainder is not automatically distributable profit. Use the actual release agreement when planning cash flow.
How Stonehaven helps move the project forward
1. Turn the plan into a financing request
Tell us what you control today, what needs funding next and how the loan will be repaid. We help separate total cost, requested financing and projected sales so they are not treated as interchangeable numbers.
2. Work through lender placement
We present the scenario to suitable lending sources and help compare the available structures. The discussion includes land basis, borrower contribution, funding stages, repayment and guarantee requirements.
3. Coordinate the path to closing
Once there is a viable lending path, we help organize outstanding information and lender questions. Before closing, confirm who handles draws, inspections, lot releases and subsequent phases.
What to prepare for a development-loan review
- Site location, acreage, current ownership or purchase contract, acquisition basis and any existing payoff.
- Lot count, proposed use, project phases and the current zoning, entitlement and permit status.
- A budget separating land, site work, professional fees, reserves and contingency.
- Site plans and an anticipated schedule for development, completion and sales.
- Builder purchase or lot-takedown agreements, if in place, plus the proposed sales plan.
- Developer experience, project team and a summary of funds available for the borrower contribution.
- Relevant third-party reports already available. The lender will specify what else is required.
Questions before you start
Can I request non-recourse land-development financing?
Yes, tell us that non-recourse is a priority so we can evaluate suitable placement options. Availability and the exact obligations are lender- and project-specific. A non-recourse label does not by itself confirm that completion obligations, exceptions or other guarantees are absent. Review the actual terms with the lender and your legal adviser.
Can land I already own contribute to the deal?
We can review a project with owned land. Share the acquisition basis, current debt and any recent valuation. Whether the land receives equity credit, and how much, depends on the lender’s accepted basis and the financing structure. Existing ownership does not automatically eliminate the need for cash.
Does the site have to be fully entitled or shovel-ready?
Tell us the exact stage rather than waiting to make an introduction. A site still seeking approvals requires a different discussion from a permitted development. We can review the proposed path, but the lender determines what must be completed before it can commit or fund.
How do lot releases work?
When a financed lot is sold, the lender may require a specified principal payment before releasing its lien on that lot. The release schedule affects the cash available for remaining work. Review the release amounts and conditions before assuming that each sale will fund the next phase.
Can you also help finance the homes built on the lots?
Yes, we can review the home-construction stage as well as the land and lot stage. These may require separate facilities or separate approvals. Our construction financing page explains the next step for builders planning ground-up homes or teardown-and-rebuild projects.
Can a first-time developer send a project?
Yes. Describe your experience accurately and identify the builder, civil engineer and other experienced team members involved. We can help you prepare a coherent financing request and identify what needs more work. Acceptance and terms still depend on lender review.
How quickly will I hear back?
We aim to provide initial deal feedback in under one hour and follow up by text. Initial feedback is a first look at the scenario, not a lender approval or a commitment to close on a particular date. Include your target closing date so timing is part of the review.
Project review
Tell us about your land or development project
Share the basics. We follow up by text and aim for initial deal feedback in under one hour. Initial feedback is not credit approval.
Keep account numbers, tax records and private documents out of this public form. We can arrange a secure next step for documents.
Related guides and examples
Ground-up construction financing
Connect completed lots with the capital needed to build and sell homes.
Explore →Development financing for project teams
Bring site planning, design and capital discussions together earlier.
Explore →First-time investor learning center
Build your understanding of budgets, loan structures and preparing a deal.
Explore →Commercial bridge financing
Review a transitional funding need and the proposed repayment plan.
Explore →How lenders size a loan
Keep loan amount, cost, value and repayment capacity separate.
Explore →Financing for a home you will live in
Explore the residential route and the states we currently serve.
Explore →Sources and editorial standards
The OCC materials below provide background on bank development-loan review, valuation and lot releases. They do not establish Stonehaven loan terms or require every private lender to use the same approach. The example is illustrative; actual financing is subject to lender underwriting, documentation and availability.
Updated September 21, 2026. Editorial standards · Meet the team
Prepare the next decision
Our guide to subdivision lot release prices explains how a lot sale is divided between debt reduction, costs and cash remaining for the project.