LAND SOLUTIONS

The Truth About Financing Land

Financing land is very different from buying a home. Many banks are hesitant to lend on vacant lots—especially in rural areas—because there’s no building to secure the loan. But in 2025, alternative financing options are becoming more available and more flexible.

Land Loan Options

• Raw Land Loans – Usually require 20–50% down, higher interest rates, short terms
• Improved Land Loans – Easier to finance if utilities are available
• Construction Loans – Bundle land + building costs
• Home Equity Loans – If you own a home already, you can tap into your equity to buy land

Why Seller Financing Is a Game-Changer

Many land sellers now offer seller financing — you pay a down payment, then monthly installments, directly to the seller. No banks, no credit checks, and more flexible terms.

What to Ask Before Financing

• What’s the down payment?
• Are there any balloon payments or early payoff fees?
• Is interest fixed or variable?
• Who pays for taxes, insurance, and closing costs?

Tips to Secure the Best Deal

• Look for low-interest seller financing
• Negotiate early payoff terms
• Consider a shorter term to pay less overall interest
• Work with a title company to protect both parties