The USDA offers specialized programs for land in designated rural areas.
If you aren't ready to build yet, a standard land loan allows you to secure the property. The terms vary significantly based on the land's level of development: best loan to buy land
: Best for plots with access to roads, water, and electricity. These carry the lowest interest rates and down payments (as low as 15% ) because they are considered lower risk. The USDA offers specialized programs for land in
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 These carry the lowest interest rates and down
: Your primary residence serves as collateral; if you default, you could lose your home. Land/Lot Loan Construction Loan Home Equity Loan Typical Term 15–20 years 12–18 months (then converts) 5–30 years Down Payment Usually 0% (uses existing equity) Interest Rate Higher (6%–11%) Typically lowest Zoning Req. USDA Construction Loan to Buy Land | Requirements 2026