Types Of Loans To Buy Land -

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

: Interest rates are generally lower than raw land but higher than improved land.

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

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

: For plots that are "build-ready," complete with access to public roads, water, and power.

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

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

: Lenders see this as the lowest risk, often offering the most competitive rates and lower down payment requirements. 2. Construction Loans