Land Loan Calculator
Estimate your land or lot loan payment — by land type, with balloon, taxes and insurance.
More options — balloon, taxes, insurance, frequency
Monthly payment
$0
View amortization schedule (yearly)
| Year | Principal | Interest | Balance |
|---|
Compare land loan lenders
Land and lot loans vary a lot by lender. Comparing a few quotes can save thousands over the term.
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Down payment & rates by land type
| Land type | Typical down | Rate (vs mortgage) |
|---|---|---|
| Raw land (no utilities/road) | 30–50% | ~7.5–8.5% |
| Unimproved land | 20–30% | ~7–8% |
| Improved lot (utilities, graded) | 10–20% | ~6.5–7.5% |
| Construction loan | 20–25% of project | ~12% effective |
Ranges reflect typical 2026 lender guidelines; land loans usually run 1–3 percentage points above a comparable mortgage. Your actual terms depend on credit, location and lender. Confirm with a land lender before budgeting.
Why land loans cost more than mortgages
Vacant land is riskier collateral than a house. If a borrower defaults, an empty lot is slower and harder to resell than a home, so lenders offset that risk with higher rates, bigger down payments and shorter terms — often with a balloon after 5–7 years. The less developed the land, the higher the down payment: a graded lot with utilities is treated almost like a home site, while raw acreage with no road access sits at the top of the range.
USDA, farm credit & construction options
If you plan to build a primary home in an eligible rural area, a USDA construction loan can offer low or no down payment — but it is not meant for holding raw land as an investment. Farm Credit lenders and local banks specialize in rural land, ranch and ag loans with seasonal payment frequencies (quarterly, semi-annual or annual), which you can model above. A construction loan is usually interest-only while building, then converts to a standard mortgage when the home is complete.
Frequently asked questions
How much down payment do you need for a land loan?
It depends on the land type. Raw land typically needs 30–50% down, unimproved land 20–30%, an improved lot 10–20%, and a construction loan about 20–25% of the total project cost.
Why are land loans more expensive than mortgages?
Vacant land has no house as collateral and is harder to resell on default, so land loans carry higher rates (often 1–3 points above a mortgage) and larger down payments.
What is a balloon payment on a land loan?
Many land loans amortize over 20–30 years but are due in full after 5–7 years. That remaining lump sum is the balloon. Enable “Balloon payment” above to see the balance at your balloon year.
What credit score do you need for a land loan?
Most land lenders want about 680+, with the best rates and lowest down payments above 720–740.
Can you get a USDA loan for land?
USDA finances land and construction in eligible rural areas, often with low or no down payment, but only when you intend to build a primary residence — not for raw investment land.
Land loan vs construction loan — what’s the difference?
A land loan finances the lot only. A construction loan finances lot plus building, usually interest-only during construction, then converts to a regular mortgage when the home is done.
What is a typical land loan term?
Often shorter than a mortgage — 5 to 20 years — frequently with a balloon. Farm Credit and some banks offer fully amortized terms up to 30 years.
How is a land loan payment calculated?
From the loan amount (price minus down payment), the interest rate and the amortization period using the standard amortization formula, plus any property tax and insurance you add.