Vacant Land Loans
Vacant Land Loans
Buy your future land — even if you’re not ready to build yet.
Vacant land loans help you purchase land now, without the pressure to start construction right away. Whether you’re planning to build a home, start a small farm, or invest in rural property, these loans give you the flexibility to secure the perfect lot on your own timeline.
What Is a Vacant Land Loan?
A vacant land loan is a type of financing designed specifically to help you purchase undeveloped or lightly developed land. Unlike traditional home loans, which require a structure on the property, these loans are ideal for land parcels with no existing buildings.
There are typically three categories of land:
- Raw Land – no roads, utilities, or infrastructure
- Unimproved Land – basic access, but limited utilities
- Improved Land – ready for building, with utilities and access in place
Each type has different lending criteria, but all are designed to help you purchase land before you’re ready to build.
Who Should Use a Vacant Land Loan?
Vacant land loans are popular with:
- Future homeowners who want to secure land before building
- Investors purchasing land for appreciation or resale
- Recreational buyers looking for space to hunt, camp, or farm
- Developers preparing to subdivide or build later
- Individuals buying land for off-grid living or long-term use
If you’ve found the right land and need time to plan what comes next, a vacant land loan might be the perfect fit.
Key Benefits of Vacant Land Loans
- No need to build right away — buy now, build later
- Flexible terms and down payment options
- Can finance rural, suburban, or city lots
- Available for individuals, trusts, or LLCs
- Build equity as the land appreciates over time
Vacant Land Loan Requirements
- Down Payment – Typically 20% to 40%, depending on the land type
- Credit Score – Minimum credit score varies by lender (usually 660–700+)
- Land Type – Raw land often requires stronger credit and larger down payments
- Appraisal – A land appraisal is usually required to determine market value
- Clear Plan – Some lenders may ask for your future plans for the property
- Access & Utilities – Improved land is easier to finance due to lower risk
Each lender has different terms, so eligibility and loan structure may vary.
FAQ
A vacant land loan allows you to finance a parcel of land that doesn’t yet have a house or building on it.
You can use this loan to buy raw land, unimproved land (with limited utilities), or improved land (ready for construction).
No. Many land loans give you time to plan and develop in the future. However, some lenders offer better terms if you intend to build within a few years.
Most vacant land loans require 20% to 40% down, depending on the land’s condition and your credit profile.
Yes. Many lenders allow land to be titled under your name, an LLC, or a trust, depending on the loan structure.
Yes, though financing for rural or raw land may require higher down payments and stronger financials.
