A land loan pays for a lot or acreage with no house on it. It takes more cash up front than a mortgage, and nearly every lender that makes one only works in certain states.
Three questions sort your options: where the land is, what kind of land it is, and how soon you plan to build. Start with the quick answer, then compare all 10 lenders side by side.
Quick answer: which lender fits which buyer
Start with Rural 1st, which makes fixed-rate bare land loans in 22 states. In the West, AgWest Farm Credit covers seven.
Old National Bank publishes 20% down on lots up to 50 acres. U.S. Bank and Banner Bank pair a lot loan with a construction loan.
Truliant Federal Credit Union lends $5,000 to $200,000 on up to 10 acres in seven states. Clear Mountain Bank finances recreational land in West Virginia and western Maryland.
You may not need a land loan. A home equity line from Figure borrows against your house, so the land never has to qualify. See how that works.
Compare the best land loan lenders
Every figure comes from the lender’s own page. “Not published” means you have to ask.
| Lender | Where it lends | Land it finances | Down payment or LTV | |
|---|---|---|---|---|
| Rural 1st | 22 states | Bare land of 10 acres or more | Not published | Visit Rural 1st |
| Old National Bank | 9 states, plus 8 more with $50,000 on deposit | Lots and land up to 50 acres | 20% down | Visit Old National |
| Truliant Federal Credit Union | FL, GA, NC, OH, SC, TN and VA | Raw land or a subdivision lot, up to 10 acres | Not published | Visit Truliant |
| U.S. Bank | Varies by state | Residential lots for a new home | Not published | Visit U.S. Bank |
| Banner Bank | WA, OR, ID and CA | Improved and unimproved lots | Up to 75% of lot value | Visit Banner Bank |
| AgWest Farm Credit | AK, AZ, CA, ID, MT, OR and WA | Bare land in the country | Not published | Visit AgWest |
| Clear Mountain Bank | North central WV and western MD | Residential lots and recreational raw land | Up to 90% of price on lots | Visit Clear Mountain |
| Alpine Bank | Colorado | Lots and land | 75% LTV on improved lots | Visit Alpine Bank |
| California Bank & Trust | California | Improved residential lots | Up to 65% of purchase cost | Visit CB&T |
| Atlantic Union Bank | Virginia and beyond | Residential lots and undeveloped land | Not published | Visit Atlantic Union |
Terms read on each lender’s site at this update. All loans are subject to credit approval.
The 10 best banks for land loans
Ranked by how useful each one is to a typical buyer: reach first, then how much it tells you before you call.
1. Rural 1st
Best for rural acreageWhy we picked it It reaches 22 states and is built for the land most banks avoid: bare acreage of ten acres or more. The rate is fixed, and if rates fall you can lower yours once a year for a fee.
- Fixed rates on bare land
- Lends in 22 states
- Bare land loans start at ten acres
- Down payment is not published
Read on Rural 1st’s site at this update. States: AR, CA, CO, HI, IL, IN, IA, KS, KY, MN, MO, NE, NV, NM, ND, OH, OK, SD, TN, TX, WI, WY. Lowering your rate costs a one-time $750. A tradename of Farm Credit Mid-America, NMLS 407249.
2. Old National Bank
Best for a lot in the MidwestWhy we picked it It puts the whole offer on one page: as little as 20% down, loans up to $500,000 and lots up to 50 acres. It will also refinance a lot loan you already have.
- Publishes its down payment
- Covers lots up to 50 acres
- Loans stop at $500,000
- Some states need $50,000 on deposit
Read on Old National’s site at this update. Footprint: IL, IN, IA, KY, MI, MN, ND, TN, WI. Also AZ, CO, FL, GA, MT, NC, OH, SD with an existing Old National relationship and $50,000 on deposit.
3. Truliant Federal Credit Union
Best for a small parcel of raw landWhy we picked it It tells you the most before you apply: the rate, the fee, the term and the limits. Borrow $5,000 to $200,000 on raw land or a subdivision lot of up to 10 acres, over 144 to 180 months.
- Publishes its rate, 8.24% to 8.99% APR
- Finances raw land
- 1% origination fee, paid up front
- Limit of 10 acres and $200,000
Read on Truliant’s site at this update. FL, GA, NC, OH, SC, TN and VA only. APR may change without notice. Undeveloped land for personal use only. Converts to a construction loan when you build.
4. U.S. Bank
Best lot loan from a national bankWhy we picked it It is the only national bank on this list. The lot loan pays for a residential lot where you will build a single-family home, and the same officers handle the construction loan.
- Construction-certified loan officers
- Lot and construction loans together
- Rate adjusts after a fixed period
- For a home site, not acreage
Read on U.S. Bank’s site at this update. Not all loan programs are available in all states for all loan amounts. Subject to credit approval and program guidelines.
Best in the Pacific Northwest
Why we picked it Banner lends up to 75% of the lot’s value on improved or unimproved land, with a fixed or adjustable rate. It is for a primary or vacation home you plan to build later.
- Finances unimproved land too
- Fixed or adjustable rate
- Plan on at least 25% down
- Loan size and term not published
Read on Banner Bank’s site at this update. Locations in Idaho, Washington, Oregon and California. Subject to credit approval.
6. AgWest Farm Credit
Best for country land in the WestWhy we picked it The Farm Credit lender for the West finances bare land in the country, for a home site or a getaway. Its All-in-One Construction Loan combines the land and the build with one closing.
- Built for rural land
- One closing for land plus build
- Restrictions under 10 acres
- Down payment is not published
Read on AgWest’s site at this update. Branches in AK, AZ, CA, ID, MT, OR and WA. Conditions and restrictions may apply to recreational financing or less than 10 acres. Collateral must be considered agriculture. NMLS #2463478.
7. Clear Mountain Bank
Lowest published down paymentWhy we picked it It finances up to 90% of the price on a residential lot, the lowest down payment any lender here puts in writing. Raw land for recreation qualifies too. It is on our list of the best banks in West Virginia.
- Up to 90% financing on lots
- No prepayment penalties
- Small footprint in WV and MD
- Rates and terms not published
Read on Clear Mountain Bank’s site at this update. Branches in north central West Virginia and western Maryland. The 90% figure applies to residential lots. Phone 304-379-2265. NMLS 523098.
8. Alpine Bank
Best in ColoradoWhy we picked it Alpine keeps the loan in Colorado, from the officer to the decision. It lends up to 75% of value on improved lots and converts to a construction loan when you build. It is on our list of the best banks in Colorado.
- Decisions made in Colorado
- Converts to a construction loan
- Raw land terms not published
- No online application
Read on Alpine Bank’s site at this update. The 75% maximum loan-to-value applies to improved lots. Subject to Alpine Bank’s underwriting requirements and current market conditions.
9. California Bank & Trust
Best for a California lot you will build onWhy we picked it The lot loan lets you buy improved land in California before you are ready to build. When you build, the One-Time Close loan covers the lot, the construction and the mortgage.
- Buy the lot now, build later
- Apply online in about 15 minutes
- Plan on 35% down
- Improved land only
Read on California Bank & Trust’s site at this update. For a primary residence or second home. A division of Zions Bancorporation, N.A. Member FDIC. NMLS 467014.
10. Atlantic Union Bank
Best for a branch visit in VirginiaWhy we picked it It finances ready-to-build residential lots and undeveloped land, with a construction loan to follow. It publishes no numbers, so this one starts with a conversation.
- Covers undeveloped land
- Construction loans available
- No rate or down payment published
- Apply by branch or phone only
Read on Atlantic Union Bank’s site at this update. The bank says it is located in Virginia and beyond, so confirm it lends where your land is. NMLS 551889.
Nine of these ten only lend in certain states. U.S. Bank is the exception, and it is the only one that also makes our list of the best national banks. If none of them lends where your land is, call the banks with branches near the parcel, because land lending is local. Our state guides are a starting point, including the best banks in California and the best banks in Virginia.
One lender here, Truliant, is a credit union, so you become a member before you borrow.
Use your home’s equity instead
If you already own a home, this can be the simpler loan.
A home equity line of credit borrows against your house, not the land. The lender never asks about a survey, road access or a perc test, and you show up to the seller with cash. The trade is real, though. Your home becomes the collateral, so a missed payment puts the house at risk, not the parcel.
Two lenders we cover take the whole application online.
Figure Home Equity Line
Best for speedFigure can approve you in as little as five minutes and fund in as few as 5 days on loans under $400,000. You take the full amount up front, minus the origination fee.
Read on Figure’s site at this update. Approval is subject to verification of income and employment. Five business day funding assumes a remote online notary closing and a loan under $400,000. Minimum $25,001 in Alaska and $35,000 in Texas. A one-time origination fee applies.
Upstart Home Lending HELOC
Best for credit scores from 600A HELOC from Upstart Home Lending is the one to explore if credit has held you back. HELOCs are available for credit scores starting at 600, with a 100% online application.
Upstart Mortgage, LLC dba Upstart Home Lending. NMLS #2443873. Equal Housing Opportunity.
Want cash from your home with no monthly payment? A home equity investment is a different product with its own costs. We compare the providers in our guide to the best home equity investment companies.
Types of land loans
What a lender offers depends on how finished the land is.
| Land type | What it means | Who finances it here |
|---|---|---|
| Raw land | No road, no utilities and no site work | Truliant, if the soil passes a perc test. Clear Mountain, for recreational use. Rural 1st and AgWest, for acreage. |
| Unimproved land | Some access or utilities, but not ready to build | Banner Bank. Atlantic Union Bank finances what it calls undeveloped land. |
| Improved lot | A building lot with road access and utilities, ready for a house | Alpine Bank and California Bank & Trust finance improved lots. Old National, U.S. Bank and Clear Mountain finance residential lots. |
| Farm and ranch land | Land in agricultural use | Rural 1st, which welcomes tillable acreage, and AgWest, where the collateral must be considered agriculture |
| Lot plus construction | One loan for the land, the build and the mortgage | California Bank & Trust and AgWest include the land purchase. U.S. Bank, Alpine, Banner and Rural 1st offer one-close construction loans. |
The less finished the land, the more cash a bank wants from you. Federal bank regulators tell lenders to keep their own limits at or below 65% of value for raw land and 75% for land being developed. A mortgage on a home you live in has no such ceiling. That gap is why land takes a bigger down payment.
Source: Interagency Guidelines for Real Estate Lending Policies, 12 CFR Part 365, Appendix A.
Land loan requirements: what lenders look for
Six things decide whether a parcel gets financed, and on what terms.
Among the lenders here that publish a figure, you put down 10% to 35%. Clear Mountain finances up to 90% on residential lots, Old National asks for 20%, and California Bank & Trust lends up to 65% of the cost.
None of these ten lenders publishes a minimum credit score for land, so expect a full application either way. If your score needs work first, here is how to improve your credit score.
Truliant requires a full appraisal and a full title search on every land loan. Ask each lender what it requires, and budget for a boundary survey if the corners are not marked.
Confirm the parcel is zoned for what you plan to do before you apply. Truliant tells borrowers to check local zoning, and it lends for personal use only.
A lender wants to know you can legally reach the land. If the parcel does not front a public road, ask the seller for the recorded easement.
Raw land has to be buildable. Truliant requires raw land to pass a perc test, which shows the soil can handle a septic system. Ask how far power and water are from the lot line.
Other ways to pay for land
A land loan is not the only route, and for some buyers it is not the best one.
The owner acts as the lender and you pay in installments on whatever terms you both agree to. With a contract for deed, the seller keeps the deed until your last payment. The CFPB warns that a seller may move to evict quickly if you miss a payment or cannot make a balloon payment. Have an attorney read the contract first.
USDA’s rural housing loans are for a home, not bare land. The Section 502 direct loan can pay to buy and prepare a site, including water and sewer, when you build a primary residence in an eligible rural area. It is for low-income applicants, typically needs no down payment and runs up to 33 years. The Section 523 and 524 site loans go to nonprofits and tribes, not individual buyers.
These are for an operating business, not an investor. A 504 loan can fund the purchase of land or buildings up to $5.5 million over 10, 20 or 25 years, through a Certified Development Company working with a lender. It cannot be used for speculation or rental real estate.
If you will build right away, one loan can cover the build and the mortgage, and sometimes the lot. California Bank & Trust’s One-Time Close loan includes the lot purchase, and AgWest’s All-in-One loan combines land and construction with one closing. Our guide to building your first home walks through the steps.
For a small parcel, a personal loan is the simplest option because it is unsecured. There is no appraisal, no survey and no lien on the land. The amounts are usually smaller and the terms shorter than a land loan, so it fits a few acres, not a farm. Compare lenders in our guide to the best personal loans.
A private lender may fund land that a bank will not. Compare the full cost before you sign.
MorePrivate lenders vs. bank loans
How to compare land loan offers
Ask every lender the same five questions and write the answers down.
- Do you lend where the land is? Start here, because every lender on this page is limited by geography.
- What will you lend against this parcel? Give the acreage, the zoning, and whether it has road access and utilities.
- What are the down payment, the rate and the term? Ask whether the rate is fixed or adjustable. U.S. Bank’s lot loan adjusts after a fixed period. Rural 1st’s bare land loan is fixed.
- What are the fees? Truliant charges a 1% origination fee that cannot be rolled into the loan.
- What happens when I build? Truliant and Alpine convert a land loan into a construction loan.
How we chose these
Where each lender works, the land it finances, the down payment or loan-to-value it publishes, and how you apply.
Every figure comes from the lender’s own land or lot loan page. When a lender does not publish a number, we say so.
We removed WaFd Bank, which no longer accepts new home loan applications. Terms change, so confirm them with the lender.
Land loan FAQs
Yes. A home equity line borrows against the house you already own, and you can use the cash to buy land. Figure lends $15,000 to $750,000 and can fund in as few as 5 days on loans under $400,000. HELOCs from Upstart Home Lending are available for credit scores starting at 600. Your home is the collateral, so borrow only what the house can safely carry.
Nine of the ten lenders on this page only lend in certain states. Rural 1st lends in 22 states, Old National Bank in nine plus eight more with a deposit relationship, and Truliant Federal Credit Union in seven. U.S. Bank, the one national bank here, offers lot loans through its mortgage loan officers. Banner Bank, AgWest Farm Credit, Clear Mountain Bank, Alpine Bank, California Bank & Trust and Atlantic Union Bank each cover specific states.
No, but plan for at least that much. Among the lenders here that publish a figure, Clear Mountain Bank finances up to 90% of the price on residential lots, Old National Bank asks for as little as 20% down, Banner Bank and Alpine Bank lend up to 75% of value, and California Bank & Trust lends up to 65% of the cost of improved land. Raw land usually needs the most, because federal guidelines tell banks to cap raw land loans at 65% of value.
It depends on the rate and the term. As an example, $100,000 at 8.5% for 15 years is about $985 a month in principal and interest. Truliant, the only lender here that publishes a land loan rate, lists 8.24% to 8.99% APR on terms of 144 to 180 months at this update. A shorter term raises the payment. The same loan over 12 years is about $1,110 a month.
Yes. There is no house to secure the loan, so lenders ask for more cash, and you should expect an appraisal, a title search and sometimes a perc test. Federal bank guidelines set a 65% loan-to-value ceiling for raw land and 75% for land being developed, while a mortgage on a home you live in has no set ceiling. Most land lenders also work only in certain states.
None of the ten lenders on this page publishes a minimum credit score for land loans, so ask before you apply. Lenders weigh your score together with your down payment, your income and the land itself.
It can be, if you have a plan for it. Raw land produces no income unless you lease it out, and you still owe property taxes and loan payments while you hold it. It makes the most sense when you intend to build on it, farm it or use it yourself. If you want farmland in your portfolio without buying a parcel, see how to invest in farmland.
