Land Loan Calculator

Finance raw land — understand the true cost

What is this? Land loans are very different from mortgage loans. Banks view raw land as riskier — expect higher down payments (20-50%), shorter terms (10-15 years max), and higher interest rates (1-3% above comparable mortgage rates).

Types of land loans: Raw land (no utilities, highest risk), transitional land (planned for development), and improved land (has road access + utilities). Each has different lending standards.

Who it's for: Buyers purchasing raw land for a future home site, cabin, or investment.
Loan Details
Payment Breakdown
Loan Amount
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Monthly P&I Payment
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Total Interest Paid
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Total Cost of Land
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Monthly (incl tax)
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Interest as % of Loan
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Land loans typically have shorter terms and higher rates than mortgages. Consult a community bank or credit union specializing in land loans.

Land & Real Estate Financing

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Frequently Asked Questions

What is a land loan?

A loan specifically for purchasing raw land — without existing structures. Land loans are riskier than mortgages on built properties, so they have higher interest rates and shorter terms. Lenders view undeveloped land as harder to resell.

How do land loans differ from mortgages?

Land loans: shorter terms (5-15 years typically), higher interest rates (1-2% higher than mortgage rates), higher down payments (20-50%), and often require full documentation. Construction-to-permanent loans are an alternative for building.

Can I get a USDA loan for land?

USDA offers rural development loans that can include land purchase + construction. These require the property to be in an eligible rural area and the buyer to meet income limits. Some states also offer farmland loans with favorable terms.