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Building a Home

Buying Land? We’ve Got You Covered


If you’ve been home shopping lately, you know it’s not easy. New listings are at record lows, construction of new homes has slowed, and homes for sale are scooped up fast — in an average 61 days (January 2022 data). That is the fastest pace has recorded since it began tracking the metric in 2016.

That market reality has got some buyers — and lenders like AAFMAA Mortgage Services LLC (AMS) — thinking outside the box.

"We're homebuyers, too, and we want to provide something for servicemembers and Veterans who are having trouble finding a house to buy but may want to buy a plot of land instead and eventually build a home,” explains Stacey Daniels, AMS’s Chief Operating Officer and Executive Vice President.

Related: Where to Find Affordable Land and How to Get a Construction Loan

Financing Property

If you’re thinking about building someday, this may be a good time to buy the land, Daniels notes.

Our Land Advantage LoanSM can be used to purchase up to 20 acres to build a primary residence. You’ll need a credit score of at least 680 and be able to put 25% down.

The land must be zoned for residential use, accessible (with a road on at least one side), and meet the minimum water and sewage requirements.

You would qualify for the land loan just like a purchase loan and make payments on it each month. “When you’re ready to build, you’d get a construction loan, which pays off your land loan,” explains Daniels. Typically borrowers pay interest only payments during construction.

Related: How to Finance a Home Construction

Smart Investment

A land loan works well in today’s market, especially for borrowers who want to build their own home. "And even if they never build on the land, it can be a good investment when they sell or pass it on as part of their estate. There’s a lot of flexibility that we think will appeal to people in the market today," says Daniels.

We’re Here to Help

Whether you’re just thinking about buying, ready to start home-shopping in earnest, or thinking about refinancing, a Military Mortgage Advisor will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.

Ensuring AAFMAA Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-246-7930!