Land Loan Calculator – Raw Land Mortgage
Calculate land loan payments, cash needed at closing, and long-term carrying costs.
Results are estimates only and are not a credit offer or financial advice. Confirm eligibility, rates, and fees with your lender.
Table of Contents
How to Use
- Enter the purchase price of the land and the down payment percentage you can provide.
- Add the loan term in years and the annual interest rate offered by your lender.
- Include optional annual property taxes, insurance, HOA fees, closing costs, or improvement budgets.
- Click Calculate to view principal and interest, monthly carrying costs, total interest, and cash needed to close.
How land loans differ from home mortgages
Land and lot loans often have shorter terms, higher interest rates, and larger down payment requirements because lenders cannot rely on an existing structure as collateral.
- Down payments typically range from 20‑40% for improved lots and up to 50% for raw land.
- Terms commonly span 10‑20 years with balloon payments or conversion to construction loans.
- Lenders scrutinize zoning, access to utilities, and your plan to build or sell within a reasonable time.
Preparing for approval
- Document your income, reserves, and any construction budget you intend to roll into the loan.
- Order a survey, soil test, and title review to address potential issues early.
- Gather quotes for insurance, taxes, and HOA dues to show you can cover ongoing costs.
- Clarify whether the lender allows future construction draws or requires a separate construction loan.
Ways to improve affordability
- Increase the down payment to lower the loan amount and monthly principal and interest.
- Shop multiple lenders, including credit unions and community banks, for better rates or terms.
- Keep property taxes, insurance, and HOA dues in escrow to avoid surprises.
- Plan phased site improvements so you can pause spending if rates rise or cash flow tightens.
Frequently Asked Questions
- What credit score is required for a land loan?
- Many lenders look for mid-600 credit scores or higher, low debt-to-income ratios, and strong cash reserves. Requirements vary, so check with local banks, farm credit unions, and national lenders.
- Can I roll construction costs into a land loan?
- Some lenders offer land/construction combo loans with staged draws. Others require a separate construction loan once you are ready to build. Use the improvement budget field to see how cash-to-close changes when you pay for site work up front.
- Are land loans fixed or adjustable?
- Most land loans have fixed rates, but some lenders price loans with short fixed periods and balloons. Enter the offered rate and term to see how the payment fits your budget.
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