April 14, 2025

Borrowers will see cautious land lending this year. Deals getting funded will most likely be acquisitions or recent acquisitions. Banks will be very selective on land loans and most of the capital will come from debt funds and private money. Lenders will strongly scrutinize the ability of the developer to obtain construction financing in order to assess the probability of being taken out of the loan. Expect land lending to return to more normal levels in 2026 and 2027. The timetable for development financing and securing the necessary equity to go vertical on projects will create the need for land loans the next few years. More