Use Your Home’s Equity to Buy Land in California
If you own a California home with equity, one of the most powerful ways to finance a land purchase is through a HELOC — a Home Equity Line of Credit. Rather than applying for a standalone land loan against the land itself, you borrow against your existing home and use those funds to purchase the land outright.
This approach offers significant advantages: no zoning or acreage restrictions from your lender, higher effective LTV than most land loans, and the simplicity of a cash purchase on the land itself.
How It Works
- Open a HELOC against your existing California home (up to 95% CLTV)
- Draw the funds you need for the land purchase
- Close on the land — as a cash buyer, no land loan required
- Pay interest-only on the HELOC during the 10-year draw period
- When ready to build, roll into a construction-to-permanent loan
HELOC for Land vs. Standalone Land Loan
| Feature | HELOC (Home Equity) | Land Loan (Land Collateral) |
|---|---|---|
| Collateral | Your existing home | The land itself |
| LTV available | Up to 95% of home value | Up to 80% of land value |
| Zoning limits | None from HELOC lender | Residential only (no AG/commercial) |
| Acreage limit | None | 20 acres max |
| Rate type | Variable (Prime-based) | 10-year fixed |
| Who it’s for | Existing homeowners with equity | Buyers without home equity |
Ready to Buy California Land?
Use your home’s equity or a standalone land loan. Free consultation.
We Also Offer Standalone Land Loans
Don’t own a home — or prefer to keep your home equity separate? We offer standalone residential land loans with a 10-year fixed rate, up to 80% LTV, and loan amounts from $50,000 to $500,000. Residential zoning required, up to 20 acres.
Frequently Asked Questions
Can I use a HELOC to buy any type of land in California?
Yes. When using a HELOC to fund a land purchase, the HELOC lender doesn’t restrict what you do with the funds. You can buy residential, agricultural, recreational, or any other type of land — the HELOC is secured by your home, not the land.
How much can I borrow against my home to buy land?
HELOC amounts up to $750,000 are available, with CLTV up to 95% for qualified California borrowers. The exact amount depends on your home’s appraised value, existing mortgage balance, credit score, and income.
Related Resources
- Land Loans California — Standalone Programs
- Full Guide: Using a HELOC to Buy Land
- HELOC California — All Programs
- Construction Loans California
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
