What is the highest percentage lenders will typically lend on raw land?

The highest percentage that lenders typically lend on raw land is generally around 50%. This lower loan-to-value ratio compared to other types of properties is primarily due to the increased risks associated with raw land financing. Lenders view raw land as an investment that lacks the immediate cash flow and collateral security that developed properties provide. Since raw land does not generate income until it is developed, lenders are more cautious and usually require borrowers to have a larger equity stake in the property. This mitigates the lender's risk in case the borrower defaults or the value of the land does not appreciate as expected. A 50% lending ratio ensures that lenders have a greater buffer against potential losses while still allowing buyers to secure financing for their land purchases.