The entitlement process significantly enhances the value of land by securing the necessary approvals and permits for development. Lenders prioritize the status and completeness of these entitlements, assessing their influence on the land's potential and value.

With entitlements in place, development risks are lowered since zoning, environmental, and regulatory challenges have been addressed, increasing lender confidence in the project's feasibility and success. Due to its readiness for development, entitled land is more marketable and in higher demand. This appeal to developers and investors can affect loan terms and availability.

Lenders often offer higher LTV ratios for entitled land compared to raw or unentitled land, enabling borrowers to obtain more financing based on the land's increased value. Lenders also closely review the development plans for entitled land, considering the proposed use, project timeline, and expected ROI. Well-developed plans can improve financing options.

Financing entitled land typically involves specialized lenders who understand the complexities of land development and can provide tailored solutions. Lenders perform thorough due diligence on entitlements, verifying all permits, approvals, and regulatory compliance to ensure the land is fully ready for development.