2025 Market Update: As of November 2025, Delaware’s land-loan market remains

Buying land in Delaware? Whether you’re planning to build later or simply want to own acreage now, John Thomas and the PRMI team offer flexible land loan solutions for vacant lots, raw land, and recreational property.

What Is a Land Loan?

A land loan—also known as a vacant land loan or lot loan—lets you purchase property that doesn’t yet have a home on it. Traditional conventional mortgages typically don’t allow this, but PRMI Land Loans make it possible to own land today and build later or not build at all . Land Loans are also sometimes referred to as Lot Loans or Vacant Land Loans. You apply for a Land Loan by calling loan officer John Thomas with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE.

What are the Guidelines for Delaware Land Loans?

Vacant Land Loans have the following guidelines:

• Minimum Loan Amount is $100,000
• Maximum Loan Amount is $750,000
• Minimum Credit Score is 660
• Maximum Loan to Value (LTV) is 65%
• No Pre-payment Penalty
• Available for Purchase, Refinance & Cash Out Refinance
• Maximum Term Length is 20 years (240 Months)
• Gift Funds or Un-sourced Funds Not eligible on our Purchase Land Loans
• No minimum or maximum acreage requirement
• No subdividing the Land while PRMI Land Loan holds the lien
• No Requirement to Build

What are the Eligible Property Types for Land Loans?

You can use the PRMI Land Loan to purchase the following types of property:

• Income Producing Properties with acreage
• Recreational Property (i.e. hunting)
• Individual Building Lots
• No Maximum acreage limitation (but needs a supported appraisal)

Ineligible Property Types are as follows:

• Development Sites / Speculative Sites
• Properties located adjacent to or containing environmental hazards
• Zoned Industrial or Commercial

What are the Different Types of Land You can Buy?

Land can be classified into 3 categories: Raw Land, Unimproved Land and Improved Land. Raw Land is completely undeveloped land with no electricity, no sewers, no roads, etc. Unimproved Land is similar to Raw Land but it tends to have some development such as some utilities and amenities but would lack electric meter, phone box, or gas meters. Improved Land has access to things such as roads, electricity, and water.

Want to Buy Land and Build a Home?

If you are looking to buy land and build a home on it, then a much better option than a Land Loan would be a One Time Close Construction Loan. The OTC Construction Loan allows you to purchase the land and build the home all in one loan and one closing. Also the down payment requirement is as little as 5% down or even 0% down on a USDA or VA one time close loan. Below are the loan options for OTC Construction Loans:

• FHA One Time Close Construction Loan (3.5% Down)
• USDA One Time Close Construction Loan (0% Down)
• VA One Time Close Construction Loan (0% Down)
• Conventional One time Close Construction Loan (5% Down)
• Jumbo One Time Close Construction Loan (20% Down)

Can I refinance Vacant Land I Already Own?

Yes, you can refinance land that you already own. You can refinance your current land loan with our Rate & Term Land Loan Refinance and are capped at 65% LTV like our purchase Land Loan. You can also refinance and pull cash out of the property with our Cash-Out Refinance Land Loan. The Loan to value is capped at 60% LTV on a cash-out refinance. You must also have owned the land for at least 2 years in order to be eligible for our Refinance Land Loan.

Why Work with the John Thomas Team for Your Land Loan?

What sets us apart? As Delaware natives, we understand the local zoning, environmental review, and property-access issues that often stall raw-land purchases. When you work with John Thomas, you’re working with a team that has helped dozens of buyers in Newark, Wilmington, Middletown, Smyrna, Dover and Sussex County secure land financing and position themselves for future build-out.

• Delaware-based loan officer with 20+ years experience
• Expert in vacant-land and construction-to-perm loans
• Personalized local guidance from application to closing
• Trusted by 3,000+ Delaware buyers and agents

How Do You Apply for PRMI Land Loan?

If you are interested in purchasing land that you are not planning on building on immediately then the PRMI Land Loan may be the perfect option for you. You can get started by calling John Thomas, NMLS #38783, and the Primary Residential Mortgage, Inc. team at 302-703-0727 or you can APPLY ONLINE.

Delaware Land Loan FAQ

Can I buy land without building immediately?
Yes – PRMI Land Loans allow you to purchase and hold land indefinitely.

Are land-loan rates higher?
Typically yes, since raw land carries more risk; rates depend on credit, loan size, and property type.

What documentation is required?
A standard application, credit report, income verification, and an appraisal of the land.