--- title: Large Land Loans Are Almost Impossible Today description: Don't Waste Your Time Trying to Place Land Loans Today If you're a commercial mortgage broker and some real estate developer comes to you and a --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Large Land Loans Are Almost Impossible Today](https://info.c-loans.com/bid/53388/large-land-loans-are-almost-impossible-today) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Wed, Oct 1, 2008 - [Tweet](https://twitter.com/share) *Don't Waste Your Time Trying to Place Land Loans Today* If you're a commercial mortgage broker and some real estate developer comes to you and asks you to find a commercial bank or a hard money lender to replace his existing mortgage loan on his land, you should probably decline the engagement. You're probably never going to get paid. [![Free List of 3,159 Commercial Lenders Sort By Your Own Criteria](https://no-cache.hubspot.com/cta/default/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24) Most of the land development deals that blew up when the subprime crisis erupted were on residential land. On the order of 2 million homes are in foreclosure, and the United States is already awash in unsold homes. The United States needs new homes like we need a hole in the head. A great many banks and hard money lenders - once a major source of loans on residential subdivisions - have already foreclosed on a ton of land. Many more land loans are in the process of foreclosure. **Banks and hard money lenders are terrified of new land loans**. The chances of selling some bank or hard money lender on making another land loan are almost nil. There are only two types of land loans that have a chance in this market. Land zoned for commercial use might have a chance, but only at a very low loan-to-value ratio, say 35% to 40%. The other type of land loan that might make sense is a loan to a very well-healed developer who is buying foreclosed land for pennies on the dollar and is putting down a huge down payment, say 45% to 50% in cash. Guys, you need to feed your family. You're not going to do that if you waste precious hours trying to replace some $7 million land loan on some stalled housing project or residential land development deal. Use your time instead to call on local banks for the small ($100,000 to $3 million) commercial permanent loans that they turn down.  These are the deals that close and feed your family. All this being said, there will still be a few land loans made made on residential subdivisions this year. Your best chance of closing one of these land loans will be by applying to the 100+ land lenders on C-Loans. You might as well. C-Loans is free. [Click here](http://www.c-loans.com/onlineapp/) to apply for a land loan. --- If you're a commercial loan broker, please be sure to print out Blackburne & Brown's commercial hard money loan [pricing matrix.](http://www.blackburne.com/blackburne_and_brown_pricing_matrix.pdf) Topics: [Large Land](https://info.c-loans.com/topic/large-land), [Loans](https://info.c-loans.com/topic/loans) ### George Blackburne III Owner of C-Loans, Inc. ![george blackburne photo](https://info.c-loans.com/hs-fs/images/george-blackburne-photo.jpg?width=156&height=217&name=george-blackburne-photo.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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