Estimate the monthly payment for financing raw land, a vacant lot, or rural acreage, along with total interest and an amortization schedule.
Land without a structure on it is considered riskier collateral than a financed home, since vacant land is harder to resell and generates no income. Lenders typically price land loans at a premium over comparable mortgage rates as a result.
Down payments for raw or unimproved land are usually higher than for a typical home purchase, often in the 20-50% range depending on the land's intended use, access to utilities, and the lender's policies.
A land loan finances the purchase of the lot itself with no building plans required. A construction loan finances the lot together with the cost of building on it, and usually converts into a standard mortgage once construction is complete.