Subdivision & Development Loans in Massachusetts

A subdivision development loan, also known as an Acquisition & Development (A&D) loan, finances the purchase of raw land and the installation of horizontal infrastructure — roads, utilities, drainage, and grading — needed to create buildable lots. It covers the gap between owning a parcel and having lots ready for vertical construction.

Typically, these loans cover land acquisition, site clearing and grading, road and curb construction, utility installation (sewer, water, electrical, gas), stormwater management, and in some cases, the first vertical builds (spec or model homes) needed to generate sales. Norfolk Capital structures draw schedules around the phases of your specific project.

A subdivision or A&D loan funds the land purchase and the horizontal work that makes lots buildable. A construction loan funds the vertical building on those lots — the houses, townhomes, or commercial structures themselves. Many projects use both in sequence: an A&D loan to develop the land, then construction financing for the buildings. Norfolk Capital can structure financing for either phase or both.

Lenders generally want to see site control (ownership or an option agreement), progress toward municipal zoning and planning approvals, a realistic project budget and pro forma, executed builder contracts if you are selling lots, and your equity in the deal. As a private lender, Norfolk Capital focuses primarily on the asset and your development plan rather than lengthy personal financial documentation.

Yes. We finance residential subdivisions (single-family, townhouse, and duplex layouts) as well as mixed-use projects with a residential majority. If your project includes a commercial component alongside housing, we'll evaluate it on the overall deal.

Yes. Once the lots are developed, we can transition your financing into a new construction loan for the vertical builds, or structure a single facility that covers both phases. We also offer fix-and-flip financing and bridge loans for developers who need flexible capital across multiple stages.

Because we underwrite around the project rather than conventional bank criteria, qualified deals can close significantly faster than regional bank or SBA timelines. Apply with your project details and our team will walk you through a realistic schedule for your specific situation.