If you already own a home with significant equity, a Home Equity Loan or HELOC may be the cheapest way to buy land.
For business owners buying land for their operations, the SBA 504 Loan is a top choice.
The "best" loan to buy land depends entirely on the land's current state and your immediate plans for it. Because land is considered a riskier investment than a finished home, these loans often require higher credit scores (typically ), larger down payments ( 15%–50% ), and have shorter repayment terms of 15–20 years . 1. Best for Immediate Building: Construction Loans
: Generally lower interest rates than specialized land loans and fewer restrictions on the land type.
: For completely undeveloped property. These are the hardest to secure, often requiring 35%–50% down and higher interest rates. 3. Best for Rural Areas: USDA Loans
