Types Of Loans To Buy Land May 2026

: For completely undeveloped property with no roads, electricity, or water.

: These are the hardest to secure and usually require the highest down payments—often 35% to 50%.

: For land that has some basic features (like a gravel road or partial utility access) but isn't fully ready for construction. types of loans to buy land

The Ultimate Guide to Financing Your Dirt: Types of Loans for Buying Land

: For plots that are "build-ready," complete with access to public roads, water, and power. : For completely undeveloped property with no roads,

Lenders categorize land based on how "ready" it is for use. This significantly impacts your interest rates and down payment requirements.

: Interest rates are generally lower than raw land but higher than improved land. The Ultimate Guide to Financing Your Dirt: Types

If you plan to build immediately, a construction loan might be a better fit than a simple land loan. These are short-term (typically 12–18 months) and cover both the land purchase and the building costs. Land Loans: What You Should Know | First State Bank