Buying land is exciting, but financing it isn’t always straightforward. Unlike a traditional mortgage, land loans often come with different terms, down payments, and interest rates.
There are 3 main types of land loans:
- Raw Land Loans – For undeveloped land. Harder to get, usually requires a larger down payment (up to 50%).
- Unimproved Land Loans – Land with some utilities or road access. A bit easier to finance.
- Improved Land Loans – Fully developed lots with all utilities ready. These are the easiest to finance and may qualify for lower interest rates.
Tips to improve your chances:
- Have a clear plan for development.
- Maintain a strong credit score.
- Offer a significant down payment (20% or more).
- Consider owner financing or local banks.
At LotFinder, many of our listings highlight financing options—so you can search smarter, not harder.
