Raw, unimproved or improved land: payments at the down payments and rates land actually gets
$—
Monthly Payment
$—
Cash Down Required
$—
Total Interest
Land type
Typical down
Typical rate premium
Typical max term
Remaining balance Interest paid to date Total paid to date
Interest is charged on the balance left each month, which is why early payments are mostly interest and later ones are mostly principal.
Land is the asset banks trust least: it produces no income, can't be occupied, and is the first thing buyers abandon in downturns — so financing it costs more at every dial. Down payments run 20–50%, rates price 1–3% above mortgages, and terms are short. This calculator prices the payment at the terms land actually gets, tiered by the only thing lenders really ask: how close is this dirt to being a buildable, resellable lot?
The Three Tiers of Land (and Lending)
Tier
Definition
Down
Rate vs mortgage
Term
Raw
No road access, no utilities, unplatted
35–50%
+2–4%
5–10 yrs
Unimproved
Access exists; utilities near but not at the line
25–35%
+1.5–2.5%
10–15 yrs
Improved lot
Utilities at the line, platted, ready to build
15–25%
+0.75–1.5%
15–20 yrs
Where to Actually Get a Land Loan
Local banks and credit unions — they know the county, keep loans on their books, and write most US land loans. National mortgage lenders largely won't touch raw land.
Farm Credit system lenders — cooperative lenders specializing in rural land and acreage, often the best rates for larger parcels.
Seller financing — extremely common in land: sellers of long-held parcels often carry the note at negotiable terms; everything (rate, down, term, balloon) is on the table.
Construction-to-permanent loans — if you'll build within ~12 months, one loan can cover land + construction and convert to a normal mortgage; usually the cheapest path for build-soon buyers.
Due Diligence: the Money Is in the Homework
Every experienced land buyer's checklist, in order of deals killed:
Perc test / septic feasibility — un-buildable soil makes rural land nearly worthless; make the offer contingent on it.
Legal access — a recorded easement or road frontage; "we've always driven through Earl's field" is not access.
Utilities distance — power line extension can run $15–50+ per foot; a quarter mile is a five-figure surprise. Well + septic + off-grid solar have their own budgets.
Zoning, setbacks and restrictions — confirm your intended use is permitted in writing from the county, and read the plat's covenants.
Survey and title — boundary disputes and mineral-rights carve-outs are land specialties; buy the owner's title policy.
Flood, wetlands and slopes — FEMA maps and the NRCS soil survey are free and take an evening.
How to Use the Calculator
Pick the land tier — realistic down payment and rate load automatically; overwrite with quotes.
Enter price and term (shorter than a mortgage — that's normal).
Read payment, cash-down and total interest — then budget the improvements separately; the loan is only the beginning of what dirt costs.
Frequently Asked Questions
Why are land loans so much more expensive than mortgages?
Default math: borrowers protect the home they live in first, and foreclosed land sells slowly at weak prices. No occupancy + no income + thin resale market = more down, more rate, less term.
Can I use a regular mortgage to buy land?
No — mortgages require a habitable dwelling. The exceptions: construction-to-permanent loans (building soon), and USDA/VA construction programs in limited cases. Land alone takes a land loan, seller financing, or cash.
Is seller financing common for land?
Very — likely more common than bank financing for rural parcels. Sellers who own outright often prefer interest income over a lump sum. Negotiate everything, record the deed properly, and have a lawyer paper it.
What does it cost to make raw land buildable?
Typical rural build-prep: well $8–25k, septic $10–30k, power extension $15–50/ft, driveway/grading $5–30k, permits vary. It's common for improvements to exceed the land price — budget before buying, not after.
Do land loans have balloons?
Frequently — e.g., 20-year amortization with a 5-year balloon, expecting you to build, refinance or pay off. Know the balloon date and your plan for it before signing.
Is buying land a good investment?
It's a patience asset: no income, ongoing taxes, illiquid — but finite in supply and unleveraged by most owners. As a place to eventually build, buying early can lock in location; as pure speculation, the carrying costs eat casual investors.
Is my information private?
Yes — every figure computes locally in your browser.
Land rewards the buyer who does the boring homework — perc test, access, utilities, zoning — and punishes everyone else. Price the loan here, budget the improvements honestly, and remember the cheapest land loan in most counties is a motivated seller with a paid-off parcel.