Land loan calculator

Calculate land financing payments for buying acreage and lots with our land loan calculator. Get monthly payments based on land contract price, interest rate, and down payment.

View land prices to explore affordability.

Questions about land loans

How do you finance land?

The first step in financing land is to determine your budget. You can estimate payments using our land loan calculator to confirm your debt-to-income ratio will accommodate financing.

Some finance options include conventional bank loans, land contracts, and government-backed loans such as USDA or FHA loans.

  • Conventional bank loans are offered by traditional banks and require a significant down payment and good credit.
  • Owner financing involves the landowner offering financing directly to the buyer, which can often result in more flexible terms than a traditional bank loan.
  • Government-backed loans, such as USDA or FHA loans, are offered by the federal or state government and are designed to help people purchase land in rural areas or low-income neighborhoods.

When applying for a loan or financing option, it's important to have a solid plan for the land and be able to demonstrate its potential value. This could include having a specific use for the land in mind.

What are the current land loan rates?

Current land interest rates range from 6% to 9% depending on contact terms and factors such as credit score and down payment. Both fixed and variable rate options are available, with fixed rates usually being higher.

Borrowers who have a higher credit score and are able to make a larger down payment will receive more favorable land loan rates. Keep in mind that land loans usually require larger down payments, shorter repayment timeframes, and higher interest than typical residential mortgages.

How much is closing on a land purchase?

Closing costs for your land purchase can vary depending on the location and the size of the land. Land closing costs may include fees for title searches, appraisals, surveys, and legal services. Generally, the buyer pays closing costs on land sales, unless otherwise negotiated in the sale agreement.

If the buyer opts for a cash land purchase, closing costs may be lower as there will be no financing processing fees. It's important for buyers to budget for land closing costs to avoid any surprises during the purchase process.

How much land can I afford?

Determining how much land you can afford involves assessing various financial factors such as income, savings, debt, and expenses. Land affordability also depends on the property size and location, the intended land use, and financing interest rates.

It's important to seek expert advice before making a purchase to ensure financial stability. Use our calculator to understand total cost of ownership and explore land prices.

How does a construction loan work?

Construction loans, also known as construction financing, are loans intended to assist in building a new property or completing a renovation project. These loans finance the construction of a variety of properties, including homes and barndominiums or commercial buildings.

Constructions loans to build a house typically require a detailed project plan and timeline, as well as a prospective budget and a consideration of any necessary permits or inspections. Once approved, the funds distribute as needed throughout the construction process until completion of the project.

A construction loan can be a useful option for those who want to build a new property but don't have the financial resources to pay cash upfront.

What are my farm land loan options?

A farm lending institution can offer you an ag loan or a ranch loan, depending on your needs, with options for farm equipment financing and livestock loans. A USDA farm loan may also be available to eligible farmers.

Special programs for first-time farmer loans may be available through farm credit services. No matter what your needs are, there are a multitude of options available to help make your farm and ranch dreams a reality.