Land Loan Calculator

Land produces no rent and is harder to resell than a house, so lenders treat it as riskier collateral. The less developed the parcel, the more cash they usually ask for. These are typical market ranges, not rules; each lender sets its own terms.

• Raw land (no road access, utilities or permits): often 20–50% down and 5–10 year terms, frequently with a balloon.
• Unimproved land (some access or partial utilities): often 20–30% down and 10–20 year terms.
• Improved lots (road, water, septic or sewer and power in place): often 15–30% down with terms that can reach 30 years.

Rates on land loans usually run above conventional mortgage rates. Local banks, credit unions and farm credit lenders are the most common sources, and seller financing is common for rural parcels.

Many land loans are amortized over a long period to keep the payment low but come due much sooner. When the balloon date arrives, the entire remaining balance is due at once. The calculator finds it with the remaining-balance formula B_k = P(1 + r)^k − payment × ((1 + r)^k − 1) ÷ r.

Example: the same 112,500 loan with a 5-year balloon still has a payment of1,107.83, but after 60 payments you owe $89,352, having paid about $43,322 in interest. Plan to sell, refinance, pay cash, or roll the balance into a construction loan before that date; the Consumer Financial Protection Bureau warns that you may not be able to refinance if rates rise or your finances change.