Difference between Residential Lot Loan and Undeveloped Land Loan (mortgage, loans)

[lisacas1]

What's the difference between a Residential Lot loan and an Undeveloped land loan?

We are looking to purchase acreage in a subdivision that sells 1 - 2 acre lots. About 95% of the lots are sold and 65% already have exisiting homes built within the last 2 years. Each lot has utilities already available. The land is currently clear and only has to be maintained by mowing. It also has an HOA.

What type of loan are we able to get to purchase the acreage? A Residential lot loan or an Undeveloped land loan? What is the difference? Do they require a % of downpayment? Are we able to get 100% financing?

Any help would be appreciated, thanks so much!

[MDMontemayor]

You will most likely need a Residential lot loan considering the land has utilities already available. They usually always require down payments for loans for unimproved land ,but I'm pretty sure the down payment will be less for a residential lot loan (check with a mortgage banker/broker to make sure). Hope this helps some.

[lisacas1]

Yes this helps a lot! Thank you very much!