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Best Land of March 2023

Land can sometimes be a great investment you can use a personal loan to purchase land without using the land as collateral. Our comparison page has top lenders' offers for getting a loan for land. Getting a loan to buy land is a great way to secure your perfect spot. Find top rates and terms on our page to suit your needs.

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Best Lenders For Land Loans

Editor's Choice
LendingTree Quick & Easy Online Process
  • APR: 5.99-35.99%
  • Loan Term: 3-180 months
  • Min Credit Score: 550
View details
Key facts
  • The nation’s largest online lending marketplace
  • Over $260 billion in loans facilitated
  • One short form for multiple loan options

Read LendingTree Review »

LendingTree Disclaimer: A Personal Loan can offer funds relatively quickly once you qualify you could have your funds within a few days to a week. A loan can be fixed for a term and rate or variable with fluctuating amount due and rate assessed, be sure to speak with your loan officer about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. A personal loan can assist in paying off high-interest rate balances with one fixed term payment, so it is important that you try to obtain a fixed term and rate if your goal is to reduce your debt. Some lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $50,000 are available through participating lenders; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. Ask your loan officer for details. Rates and APR assume fixed rate for the term of the loan may not be available for all consumers, ask your lender for a fixed rate quote. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680 *This examples are for illustrative purposes only. The examples and match rates are not a guarantee, agreement, or commitment to loan funds or extend credit. Interest rates and terms are subject to change at any time without notice.

Best Egg Hassle-free. Fixed rates
  • APR: 5.99 - 29.99%
  • Loan Term: 36-60 months
  • Min Credit Score: 600
View details
Key facts
  • Soft credit pull for pre-approval.
  • Funding of approved loans in as little as one business day.
  • Application takes just a few minutes.

Read Best Egg Review »

“Best Egg Disclaimer: *Trustpilot TrustScore as of June 2020. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–29.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–6.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.You need a minimum 700 FICO®score and a minimum individual annual income of $100,000 to qualify for our lowest APR.To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.We may also ask to see your driver’s license or other identifying documents. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 5.99% APR has 36 scheduled monthly payments of $150.57 to a total amount of $10,564.2.”

Credible Credible is Free to Use
  • APR: 5.40-35.99%
  • Loan Term: 24-84 months
  • Min Credit Score: 600
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Key facts
  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%

Read Credible Review »

Credible Disclaimer: “Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 5.40%-35.99% APR with terms from 24 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.”

SoFi Low Rates. No Fees required
  • APR: 8.99-23.43%
  • Loan Term: 24-84 months
  • Min Credit Score: 680
View details
Key facts
  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever

Read SoFi Review »

Fixed rates from 8.99% APR to 23.43% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Figure Get Approved in Minutes
  • APR: 5.75-22.94%
  • Loan Term: 36 & 60 months
  • Min Credit Score: 680
View details
Key facts
  • Approval in minutes. Funding in as few as 2 days.
  • Borrow up to $50k for emergency or unexpected purchases.
  • 100% online application; 3 & 5-year term options.
  • Low fixed rates available.

Read Figure Review »

Figure disclaimer: Figure Personal Loan is available in all 50 states including Washington DC.
¹To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Figure’s APRs start at 4.00% for the most qualified applicants and are higher for other applicants. Loan example, for a borrower with a CLTV of 45% and a credit score of 800, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 5.75% and a 3.00% origination fee. Your total loan amount payment would be $51,500. Origination fees range from 0-5.75% of your initial draw depending on your credit score and the state in which your property is located. The advertised rate is available only to borrowers using primary residences as collateral. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term and occupancy status. * For Figure Home Equity Line, APRs can be as low as 3.00% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 5.75% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.

While nothing quite compares to buying a dream home, building one takes the dream to a whole new level. The first step forward in this exciting endeavor is to buy up the land your home will sit on, which can be a pricey venture, not to mention all of the costs involved in building your home. This is where a land mortgage loan comes into play.

Personal Loan to Buy Land

A land purchase loan is a loan specifically designed for those looking to buy a plot of land. Like any other loan type, land financing can be done the traditional route—through a bank or credit union—or through an online lender, which may offer more favorable land loan rates.

Unlike other loan types, especially a mortgage where a specific dollar amount is assigned to a property, a land purchase loan may be more difficult to compute. Because there is no collateral or asset on the land, a borrower can default on a Land Purchase loan more easily than if they default on a car or house.

Moreover, the land is not as easy to sell as a house, as it is not as much in demand. For this reason, you can expect interest rates and the down payment for Land Purchase loans to be higher, as there is more at risk for the lender. Therefore, you need to carefully plan how you will use the land tied to a Land Purchase loan agreement. Doing so will give you the motivation to use the land so it will become more valuable.

Good terms to know

  • Collateral: This is an asset that a lender can seize in case a borrower defaults on their loan. Collateral may be sold to recoup some or all of the losses on the loan.
  • Loan-to-value ratio (LTV): This term is used by lenders to examine the ratio of a loan to the value of an asset, such as a piece of land purchased.
  • Interest rate: This is the amount charged by a lender on top of the amount borrowed.
  • Annual Percentage Rate (APR): The total annual rate charged for borrowing from a lender.
  • Credit score: A three-digit number that represents how risky you are as a borrower based on your credit history.

Types of Land Loans

There are several types of land loans to be aware of when searching for the best land loan lenders and before applying and comparing land loan rates. Let’s take a look!

  • Raw Land Loans – This loan type is used for a piece of land that will not be developed or built upon. It’s the riskiest of all lot loans for lenders since there is nothing significant to use as collateral, such as a building or home.
  • Vacant Land Loans – This type of loan is for a piece of land that will undergo some type of renovation or improvement so that they’re ready for construction. It’s for those who intend to build on top of the land.
  • USDA Land Loans – If you intend to purchase land in a rural area for farming or other agricultural purposes, you may qualify for a USDA loan. This subsidized loan secures property that will build new farms, establish crops, enhance existing farming operations, or for alternative farming methods.
  • SBA 504 Loan – A Small Business Administration (SBA) 504 Loan is for businesses that intend to buy up land for commercial development. With this type of loan, the SBA works with a lender to secure the property value so that the business owner will only have to supply a 10% down payment. SBA and the lender finance the rest.
  • Construction Loans – This loan option is for those intending to construct on their land but doesn’t want to deal with taking out two loans. With a construction loan, the money will be used to finance not only the land itself but also the construction work.

Land Purchase Loan – How to Get Started

To apply for a personal loan for a Land Purchase, you will need to take the following steps.

  • Check Your Credit Score. When you apply for any type of personal loan online, you need to review your credit score first through the 3 credit bureaus. Because your personal loan for a Land Purchase is primarily based on your credit score, knowing the score will help you determine what APR you will be charged.
  • Select Your Loan Type. Some companies specialize in Land Purchase loan funding, so it is better to go through them if you want the best rates for this loan type.
  • Get Prequalified for Land Purchase Loan Financing. When you choose several lending providers you like, you will need to get prequalified for your construction loans for land next. Doing so will give you the repayment details and terms for your Land Purchase loan funding requirements. If you agree to shorter loan terms, you can also get a lower fixed APR.
  • Compare the Lenders. After you have had a chance to get prequalified through different Land financing options, you can review their loan terms and APRs, and see which one fits best with your lending or personal finance requirements. For a Land Purchase personal loan, go with a lender that offers the lowest APR and features the lowest fees over the term of the loan.
  • Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan documents and information for Land Purchase loan funding. In this case, you need to supply the following details and documents:
    • Personal Identification (Social security card, passport, or driver’s license)
    • Proof of earnings or income (W-2s, paystubs, or filed tax returns)
    • Employer information (Name of company, manager’s name, and phone number and address)
    • Banking information (account details, including the routing and account numbers)
    • Proof of residence (utility bill with your name and address or a lease agreement)
  • Apply for the Loan and Start Making Payments. After you apply for your Land Purchase loans and start making payments, you might add some extra money to your payment each month to repay the loan faster. Doing so will make the loan repayment smoother and simpler.

Personal Loan for Land - All You Need to Know

To take out a Land Purchase loan, you should be aware of the following terms:

  • Annual Percentage Rate (APR) – The rate of interest charged on a Land Purchase loan, expressed at an annual rate.
  • Application Fee – The amount a lender charges for processing a Land Purchase loan application and the related documents. These fees are usually non-refundable and may or may not be included in processing a Land Purchase loan.
  • Collateral – An asset or property secured against a loan. The land you buy with a Land Purchase loan does not feature assets, such as buildings, so the online financing is non-collateralized.
  • Debt-to-Available Credit Ratio – When considering you for a Land Purchase loan, a lender may look at your debt-to-available credit details. This represents the money you owe compared to the credit available through credit lines and credit cards. Therefore, the debt-to-available credit ratio shows how much available credit you are using. The higher this percentage, the riskier you appear to a lender.
  • Debt-to-Income Ratio – The percent of your monthly pre-tax income used to pay off debts, such as auto loans, credit cards, and student loans. Lenders assess 2 key ratios. The first ratio is a front-end ratio or the percent of monthly pretax earnings spent on your house payment. The second percent is a back-end ratio or the other debts that are factored into the house payments.
  • Late fee – A fee charged to customers who take out a Land Purchase loan who pay a payment late or pay less than the required monthly amount.
  • Late Payment – A delinquent payment or a failure to pay on a Land Purchase loan before the agreed due date. A late payment can hurt your credit score for as long as 7 years.
  • Loan-to-Value Ratio (LTV) – A Land Purchase lender uses this ratio to assess the value of a loan to an asset, such as land.
  • Land Purchase Loan Lender – The financial institution that provides a Land Purchase loan for paying for a parcel of land.
  • Net Income – Your income after taxes has been deducted. It is also called your take-home pay. A lender considers this amount when assessing your ability to repay a loan amount.
  • Prepayment Penalty – A fee charged by a lender when a borrower pays off a loan before its scheduled term. Usually, prepayment penalties are not applied by standard lenders. If you are taking out a subprime Land Purchase loan, you need to read the loan terms carefully, as this fee may be applied.
  • Principal – The amount of money owed on a Land Purchase loan, excluding the charged interest or APR.
  • Risk Score – Another name for a credit score.
  • Subprime Borrower – Some people who request a Land Purchase loan funding may be subprime borrowers. A subprime borrower usually has a poor credit score because of late payments or collection accounts. Lenders evaluate and grade subprime borrowers on the degree of past collection problems – A to D, or lower. Subprime borrowers can qualify for personal loans for land but at a higher interest rate.
  • Utilization Ratio – A ratio that shows a lender how much available credit you are using.
  • Unsecured Loan – Most personal loans online are not collateralized. If you take out a personal loan for a land purchase, it is usually unsecured. Therefore, the lender assesses your ability to repay based primarily on your credit score.

Land Loans vs. Mortgages, What’s the Difference?

While they seem similar, mortgages and land loans are two very distinct loan types.

  • Purpose – One major distinction is the purpose of each loan. A mortgage is used to buy a home, plain and simple. A loan for land purchase, on the other hand, is used to buy the land a home will sit on. So those looking for land financing are most often doing so with the purpose of constructing a home on it. Some land loans will cover the costs of building the home, but most will only cover the costs involved in preparing the raw, unpolished land for construction.
  • Collateral – Another big distinction between a mortgage and a loan to buy land is the value of the collateral. A piece of land is almost always worth less than that same piece of land with a home on it. Consequently, the collateral for a mortgage is worth much more than the collateral for a land loan. Because of this, plus the fact that it’s harder to determine the value of a plot of land, you have a lower loan amount, or in other words, a low loan-to-value ratio.
  • Risk factor – As mentioned earlier, loans to buy land are a riskier transaction than mortgages since they’re less valuable collateral. They’re also riskier for borrowers due to their low loan-to-value ratio. So for example, if you take out a land loan for $100,000 to develop a piece of land worth $400,000, defaulting on the loan would mean losing out on $300,000 of value. On the other hand, mortgages aren’t as risky in this sense because they’re typically at 80-90% loan to value. So in other words, a borrower will put down 10-20% and lose out on much less if they default.


Purchasing a plot of land may feel like an unfamiliar and even daunting undertaking, but it can be a relatively straightforward process once you know what’s involved. If you have a clear plan for the land you plan on purchasing. The next step is to determine which loan type fits your needs and look at current land loan rates to find the best land loan, the lender.

FAQ on Land Purchase Loans

Can you use a personal loan to buy land?

What is the best way to select a lender for a Land Purchase finance personal loan?

What determines what I will pay in monthly installments for a Land Purchase finance personal loan?

What determines what I should provide in a down payment for a Land Purchase loan?

What types of Land Purchase loans are featured to people who wish to buy parcels of land?

What is the typical interest rate paid on Land Purchase financing?