Getting financing for land can feel harder than it should be. Most people discover that their regular bank does not offer land loans, or the terms are not what they expected. The truth is that land financing does exist, but you need to look in the right places and come prepared.
Prepare Your Finances First
Before you apply for any land loan, get your finances in order. Lenders want to see a credit score of 680 or higher, proof of income, and a solid down payment of at least 20%. The stronger your financial profile, the better rates and terms you will qualify for. If your credit needs work, take a few months to pay down debt and improve your score before applying.
Where to Apply
Local banks and credit unions are your best options for land loans. They know the local real estate market and are more comfortable lending on land than national banks. If the property is rural, the Farm Credit System offers loans specifically designed for agricultural and rural land. You should also ask the seller if they would consider owner financing, which can be faster and more flexible than a bank loan.
Skip the Loan with Equity Funding
If traditional financing is not working for you, there is another option. Equity Funding Partners work with specialized land funding companies that purchase the property outright and split profits after sale. At Serious Land Capital, we cover the purchase price, closing costs and take title, while you focus on finding deals and potentially managing the sale process. Profit splits typically range from 50/50 to 70/30. You do not need perfect credit or a large down payment to work with an equity partner.
To learn about all the ways you can finance a land purchase, check out Land Funding Partners. The key is to explore multiple options and pick the one that fits your budget and your goals.
