: For land that has some basic features (like a gravel road or partial utility access) but isn't fully ready for construction.
: Lenders see this as the lowest risk, often offering the most competitive rates and lower down payment requirements. 2. Construction Loans types of loans to buy land
: For plots that are "build-ready," complete with access to public roads, water, and power. : For land that has some basic features
The Ultimate Guide to Financing Your Dirt: Types of Loans for Buying Land Construction Loans : For plots that are "build-ready,"
: These are the hardest to secure and usually require the highest down payments—often 35% to 50%.
If you plan to build immediately, a construction loan might be a better fit than a simple land loan. These are short-term (typically 12–18 months) and cover both the land purchase and the building costs. Land Loans: What You Should Know | First State Bank