Finding the right place to get a loan for a land purchase can be confusing because not every lender offers land financing. Regular mortgage lenders often turn down vacant land applications. Knowing where to look saves you time and improves your chances of getting approved with good terms.
Local Banks and Credit Unions
Community banks and credit unions are often the best starting point for land loans. They know the local real estate market and are more willing to finance vacant land in their area. Many offer competitive rates and more flexible terms than large national banks. Credit unions in particular may accept lower down payments and work with borrowers on a case-by-case basis.
Farm Credit Lenders
If you are buying rural or agricultural land, Farm Credit System lenders specialize in exactly this type of financing. They offer loan terms up to 30 years with competitive rates. The Farm Service Agency (FSA) also provides government-backed loans for beginning farmers with down payments as low as 5%.
Online Lenders
Several online lending platforms now offer land loans. While they may charge slightly higher rates than local banks, they can process applications faster and serve borrowers in areas where local options are limited. Always compare the total cost of the loan, including fees and interest, before committing.
Seller Financing
Sometimes the best “lender” is the property owner themselves. With seller financing, you make payments directly to the seller instead of a bank. This option often comes with flexible terms, lower closing costs, and faster closing times. It works especially well when the seller owns the property outright.
Equity Funding Partners
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.
This is a strong choice for land investors who want to close fast without going through a bank approval process.
For a full breakdown of land financing options and detailed comparisons, visit Land Funding Partners to explore solutions that fit your specific needs.
Tips for Getting Approved
No matter where you apply, come prepared with a clear plan for the land, proof of income, and a solid down payment. Lenders want to see that you know what you are doing with the property. If one lender says no, keep looking. Land financing options vary widely, and the right lender for your deal is out there.
