Best Loan To Buy Land May 2026

If you already own a home with significant equity, a Home Equity Loan or HELOC may be the cheapest way to buy land.

: For plots that have some basic infrastructure (like road access) but lack full utilities. Down payments typically range from 20%–25% . best loan to buy land

For business owners buying land for their operations, the SBA 504 Loan is a top choice. If you already own a home with significant

: Can offer 0% down if you are building a primary residence in an eligible area. It combines land purchase and construction into one loan. For business owners buying land for their operations,

: Generally lower interest rates than specialized land loans and fewer restrictions on the land type.

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

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: