A straight answer
Can I get a loan to buy land or build a house?
The direct answer
Yes. I place construction loans and land loans, and eligibility depends on the project. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. Tell me whether you own the lot and what you plan to build, and I will say which loan fits and what has to be true.
A land loan finances the lot. A construction loan finances the build and pays the builder in stages. A line on the home you own now can fund the start of a build without touching that home’s first mortgage.
I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-16
No credit pull happens from a conversation. Texts go to Zach's cell.
What has to be true
For a land loan: a specific parcel, a plan for it, and your own file in order. Lenders treat land differently from a finished home, and the plan for the land is part of the file.
For a construction loan: plans, a budget and a builder the lender can review, plus the land, owned or under contract.
For a line on your current home to fund a build: equity in that home and a file that supports a second loan, the same as any home equity line.
What the lender checks
You: credit, income and reserves, the way any mortgage does. Federal law exempts a construction phase of twelve months or less from the ability-to-repay rule that governs ordinary mortgages, but the lender still underwrites the loan; the exemption changes which federal test applies, not whether you are reviewed.
The project: plans, the budget, the contract with the builder, and the builder’s standing. On a construction loan the money is released as the work is completed. Fannie Mae’s selling guide describes the single-closing version this way: “the lender will be responsible for managing the disbursement of the loan proceeds to the builder, contractor, or other authorized suppliers.”
The land: its value, access, utilities and zoning, and whether it is already owned or being bought with the loan.
Limits
No rate, fee, down payment or loan size is stated on this page. Those come from the program you qualify for, in writing.
Self-employed with a short history, a rural parcel, or a build on land that already has a home on it are each their own conversation. Zach will say which program to check and which to skip.
Nothing here is an approval. Bring the plan and the numbers you have, and the answer gets specific fast.
Building on land you already own
Fannie Mae’s selling guide describes a construction-to-permanent loan on an owned lot as a refinance: “the borrower must have held legal title to the lot before they receive the first advance of interim construction financing,” and “the borrower is using the proceeds from the construction financing to pay off any existing liens on the lot and finance the construction of the property.” The loan is measured against the “as completed” value of the lot and the improvements together.
In plain terms, the lot you own is your stake in the project, and any loan on it gets paid off inside the construction loan. Other programs have their own versions of the same idea; Zach tells you which one fits your parcel.
Which loan first?
If you already own a home with equity, a line on it is one way to fund a lot purchase or the first stage of a build, and it leaves that home’s mortgage alone. The page on getting cash without replacing your mortgage explains how a second loan works.
If the build is the whole plan, a construction loan is built for it. Fannie Mae’s guide says a single-closing transaction may be used “if the borrower wants to close on both the construction loan and the permanent financing at the same time,” which is one closing instead of two. Zach reads the plan and tells you which order fits.
Questions people ask next
Can I use a HELOC or refinance on my current house to start a new build?
Yes, that is one of the routes. A home equity line on the home you own now can fund a lot or the first stage of construction, and your current first mortgage stays exactly as it is. A refinance replaces that mortgage instead. Whether either fits depends on your equity and the size of the plan.
Should I buy land with a land loan or with a home equity loan on my current home?
A land loan is secured by the parcel and reviewed on the parcel and its plan. A line on your current home is secured by that home and reviewed like any second loan, and it leaves the new lot unencumbered. Which is cleaner depends on how much equity you have and whether you want the lot free of a loan when the build starts.
Can the equity in my land go toward the construction loan?
On a construction-to-permanent loan, yes: Fannie Mae’s guide treats a lot you already hold title to as part of the refinance, with the loan measured against the completed value of lot and improvements. Other programs handle owned land in their own way. Bring the deed and any lien on the lot.
I am self-employed with one year of tax returns. Is a construction loan possible?
Say so in the first text. Income documentation is the part of a construction file that varies most by program, and Zach places loans for self-employed borrowers on more than one program. Whether a shorter history works depends on the program and your records.
Can I get a construction loan if there is already a home on the property?
It changes the file: the lender has to know whether the existing home stays, goes, or becomes part of the plan, and how the existing loan on it, if any, is handled. It is its own conversation, and Zach asks those questions first.
How does a construction loan turn into a regular mortgage?
Either at one closing, where the construction loan and the permanent mortgage close together and the loan converts when the build is done, or at two, where a separate permanent loan pays off the construction loan. Fannie Mae’s guide describes the single-closing version; other programs run their own. Zach tells you which one your builder and timeline fit.
Do you do land loans on their own, without a build planned yet?
Zach places land loans. The plan for the land is part of what a lender reads, so come with at least a rough one. A parcel bought to build on next year and a parcel bought to hold are read differently.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Sources and checked dates
Sources: Confirmed by Zach, Sept 2026 (checked 2026-09-26) · Supplied by Zach, September 9, 2026 (checked 2026-09-09) · Fannie Mae selling guide, B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions (checked 2026-09-26) · Fannie Mae selling guide, B5-3.1-02 (checked 2026-09-26) · 12 CFR 1026.43(a), Regulation Z, ability-to-repay scope (checked 2026-09-26) · CFPB, What is a HELOC? (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (6)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach places construction loans and land loans. | Confirmed by Zach, Sept 2026 | 2026-09-26 |
| Zach reports placing loans through more than one wholesale lender and program via his broker channel: the standard home equity line described on this site, plus conventional, government, bank statement and investment-property options. Individual lender names are kept off the public pages until the executed broker agreement for each is on file (California 10 CCR 2848(a)(3)). | Supplied by Zach, September 9, 2026 | 2026-09-09 |
| Fannie Mae’s selling guide, B5-3.1-02: “Single-closing transactions may be used for both the construction loan and the permanent financing if the borrower wants to close on both the construction loan and the permanent financing at the same time. When a single-closing transaction is used, the lender will be responsible for managing the disbursement of the loan proceeds to the builder, contractor, or other authorized suppliers.” | Fannie Mae selling guide, B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions | 2026-09-26 |
| The same section says: “When a limited cash-out refinance transaction is used, the borrower must have held legal title to the lot before they receive the first advance of interim construction financing. The borrower is using the proceeds from the construction financing to pay off any existing liens on the lot and finance the construction of the property,” with the loan measured against the “as completed” appraised value of the lot and improvements. | Fannie Mae selling guide, B5-3.1-02 | 2026-09-26 |
| 12 CFR 1026.43(a)(3)(ii) and (iii): the federal ability-to-repay and qualified-mortgage provisions do not apply to “a temporary or ‘bridge’ loan with a term of 12 months or less, such as a loan to finance the purchase of a new dwelling where the consumer plans to sell a current dwelling within 12 months or a loan to finance the initial construction of a dwelling,” or to “a construction phase of 12 months or less of a construction-to-permanent loan.” | 12 CFR 1026.43(a), Regulation Z, ability-to-repay scope | 2026-09-26 |
| The CFPB describes a HELOC as an open-end line of credit for borrowing repeatedly against home equity, says draw and repayment periods vary, and warns that falling behind could cost you your home. | CFPB, What is a HELOC? | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-16.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
Buying a home? Let's talk through your next step.
Tell me what you're buying and where you are in the process. I'll help you understand what needs to be reviewed before you move forward.
No credit pull happens from a conversation. Texts go to Zach's cell.