The term "Land in lieu actually means, that you are using your land in lieu of (or instead of ) a cash down payment. This means that you can buy a home without having to come up with a big out of pocket cash down payment, PLEASE BE AWARE THAT USING THE LAND IN LIEU OPTION TAKES NOTHING OFF THE SELLING PRICE OF THE HOME THE WAY A CASH DOWN PAYMENT WOULD. (EX. if the home is $51,000 dollars and your required down payment is 10% and your lands value at 80% of the true value was $5,100 then your land would stand for your down payment, but the asking price of the home would remain the same. Whereas had you paid $5,100.00 cash, the price of the home would be reduced by $5100.