How much can I borrow against land I own free and clear?

Question

Turnrow Capital · Accepted Answer

Against debt-free land, you can typically borrow up to 70% of appraised value. Land worth $1,000,000 free and clear supports a loan up to $700,000, all of it cash in hand since there is no existing lien to pay off. Turnrow lends up to $1.5M this way with no tax returns or financials.

Free-and-clear land is the strongest position a borrower can bring. There is no payoff to negotiate, no subordination, and the title work is usually clean. From a lender's desk, these are the fastest files — often the full 2–4 week closing timeline is just waiting on the appraiser's calendar.

The use of proceeds must be business-purpose: buying more ground, equipment, operating capital, improvements, partner buyouts, or bridging a 1031 exchange. Business-purpose lending is what allows the no-doc structure — consumer-purpose cash-outs fall under an entirely different regulatory regime that requires income documentation.

Borrow what the plan needs, not what the appraisal allows. Every dollar borrowed against paid-off ground converts owned equity into a payment obligation. The 70% ceiling is a maximum, and the borrowers who sleep well usually stop at 50–60%.