Can You Get a Loan on Vacant Lots Combined With a Free-and-Clear House?
No. Vacant land is not eligible for financing regardless of what other assets are in the portfolio. Even if you own a house free and clear, vacant lots cannot be included in the collateral package. All portfolio properties must be income-producing building structures with active tenants because our DSCR underwriting model requires documented rental income -- and vacant lots generate zero income while adding to the loan balance.
This requirement stems directly from how our loans are underwritten. We use a debt service coverage ratio (DSCR) model that calculates whether the rental income from the portfolio is sufficient to cover the mortgage payment. Vacant lots generate zero rental income, which means they contribute nothing to the DSCR calculation while still adding to the loan balance. Including non-income-producing land would dilute the portfolio's cash flow metrics and increase risk for both the lender and the borrower.
Get Your Custom Loan Quote
No application fees, no tax returns required. Most loans close in 2-4 weeks with competitive rates based on your portfolio.
What If I Develop the Lots Into Rental Properties?
Once vacant lots are developed into habitable, income-producing rental structures and leased to tenants, they become eligible for inclusion in a portfolio loan. Our programs finance stabilized rental properties -- buildings that are completed, occupied, and generating documented lease income. If you are planning to build rental housing on vacant lots, the properties would qualify for our financing after construction is complete and tenants are in place, not during the development phase.
For investors with a mix of developed rental properties and undeveloped land, the typical approach is to finance the qualifying rental properties through our portfolio programs while funding the land and construction separately through a construction lender or private capital. Once the new buildings are stabilized and leased, they can be added to the blanket loan through a refinance or rolled into a new portfolio loan alongside your existing rental holdings. Our 30-year fixed DSCR program is a strong fit for stabilized properties generating consistent rental income.
What About the Free-and-Clear House?
If you own a rental house with no existing mortgage and it meets our other requirements -- minimum property value, active lease, and habitable condition -- it can be included in a portfolio loan alongside other qualifying rental properties. A free-and-clear property is actually an attractive candidate for a cash-out refinance through our blanket mortgage program, allowing you to extract equity and redeploy it into new acquisitions while consolidating the property with the rest of your portfolio. The key requirement is a minimum portfolio of five qualifying properties.
Have Rental Properties Ready to Finance?
If your portfolio includes income-producing rental properties, we can structure a loan. Tell us what you own and we will identify what qualifies.
Review the full eligibility requirements for our single property investor financing program and our portfolio loan options.