Short answer: land produces no income, so few lenders want it and those that do lend at low leverage, often 40–60% of value or less. Many portfolio programs exclude land lots entirely.
A real example
A North Carolina owner wanted to refinance about $4M on raw land at under 50% leverage. Pairing the land with an operating boat and RV storage property he also owns, and showing that he's funding the site work himself, opens lenders who won't lend on land alone.
What to do
- Have zoning, entitlements and a development plan in hand.
- Offer another property as additional collateral.
- Check state lien rules if construction will start soon; mechanic's lien priority affects lender appetite.
Related: Land loans · Bridge loans