Specialty financing · Land & A&D
Land Acquisition & Development Financing
Financing for the stage before vertical construction — acquiring land, securing entitlements, and preparing sites for building.
Plain-English definition
What is acquisition and development (A&D) financing?
A&D financing funds the purchase of land and the horizontal work that makes it buildable: grading, roads, utilities, and other infrastructure. It is different from ordinary ground-up construction financing, which funds the vertical building itself.
Raw or speculative land is more lender-specific and availability varies. Entitled land with a clear development plan generally has more financing paths.
A&D vs. ground-up construction
Acquisition & development
Land, entitlements, lot and subdivision development, site work, and infrastructure.
Ground-up construction
Building the structures — homes, townhomes, or small multifamily — on prepared land.
Who it is for
- Developers acquiring land for a defined project
- Builders creating finished lots or subdivisions
- Experienced sponsors moving land through entitlement
Common uses
- Eligible land acquisition
- Purchasing entitled land
- Horizontal development
- Lot and subdivision development
- Site work and infrastructure
- Combined acquisition-and-development structures
Property types that may be eligible
- Entitled residential land
- Land planned for subdivision or lots
- Infill parcels with a defined plan
- Raw land, where a lender’s program permits
Purchase, refinance, and cash-out
- Purchase
- Available with some programs
- Refinance
- Limited; depends on entitlement and plan
- Cash-out
- Rare; highly program-specific
Qualification
How qualification generally works
Zoning and entitlements, the development budget, sponsor experience, liquidity, market feasibility, permits, timeline, and exit are central to an A&D review.
Lenders generally want a clear plan for the land — whether selling finished lots, building, or partnering with a builder — and evidence the sponsor can carry the project through delays.
Major financing considerations
- Entitlement status and timeline risk
- Infrastructure and site-work cost estimates
- Carry costs during approvals
- Market absorption for finished lots
- Lower leverage than many other property types
Hypothetical examples
How investors may use this financing
These are illustrative examples only — not approvals, funded transactions, testimonials, or promises of terms or outcomes.
Hypothetical example
Entitled subdivision
A developer acquires entitled land for twelve lots and seeks financing for roads and utilities, planning to sell finished lots to builders.
Hypothetical example
Infill lots
A builder buys a parcel approved for a lot split and finances site work before constructing homes under a separate construction loan.
Hypothetical example
A&D into construction
A sponsor finances land and horizontal work, then plans to transition to ground-up construction financing for the first phase.
FAQs
Land and A&D questions
Related financing
Related financing options
- Ground-Up Construction Financing The vertical building phase after site work.
- Commercial Real Estate Financing Income-producing commercial property.
Zion Noah Capital is a commercial loan brokerage, not a direct lender. All financing is subject to lender approval and program availability.
Financing availability depends on applicable state requirements, lender guidelines, property type, and program eligibility.
Working on a land deal?
Share the parcel, entitlement status, and plan. We’ll explain which land and A&D paths may fit.