Raw Land Loan Calculator
Model your financing before you close: monthly payments, total interest, and true cost per acre across 20–35% down payment scenarios. Raw land loans carry fundamentally different terms than conventional mortgages.
Lenders price raw acreage as speculative collateral.
No habitable structure, no income stream, no secondary market liquidity. Raw acreage is harder to foreclose on and harder to resell — so lenders build that illiquidity premium directly into your rate.
Many raw land loans amortize over 15–20 years but carry a 5-year balloon — meaning the full remaining balance is due in year 5. If rates have risen or your credit has changed, refinancing may not be available on favorable terms. Confirm whether your loan is fully amortizing or balloon-structured before signing.
The Farm Credit System (Farm Credit Services of America, AgAmerica, AgSouth, etc.) specializes in rural land and typically offers 0.5–1.5% lower rates than conventional banks for agricultural parcels. For recreational or residential raw land, community banks with rural lending programs are often the best alternative.
USDA Section 502 loans require a dwelling to be purchased or constructed. VA loans require a construction plan tied to the purchase. Neither program covers raw unimproved acreage with no immediate build intent — a common and costly misconception.
Assumes fully amortizing loan. Does not include origination fees (typically 1–3%), annual property taxes, or land stewardship costs. See the Holding Cost Calculator for carrying cost estimates.
How down payment changes total cost.
Putting more down reduces your total interest burden significantly. The table below reflects your current rate and term inputs.
| Down Payment | Down Amt | Loan Amount | Monthly Pmt | Total Interest |
|---|
Scenarios calculated at your current price, rate, and term inputs. Highlighted row = your current selection.
Four ways to finance raw land — and what each costs.
A network of member-owned lenders (Farm Credit Services of America, AgAmerica, AgSouth, Farm Credit Mid-America) chartered by Congress to serve rural borrowers. Typically offers the most competitive rates for parcels with agricultural, timber, or rural residential intent. Requires 20–30% down. Underwriting considers land use, soil class, and regional market.
Local and regional banks with active land lending programs understand their counties better than national lenders. Underwriting is more flexible for non-agricultural parcels (recreational, hunting, cabin sites) where Farm Credit's agricultural focus doesn't apply. Rates run higher, but loan officers can navigate county-specific title issues. Requires 25–35% down for unimproved raw land.
The seller holds the note and you make payments directly to them, avoiding bank qualification entirely. Common in rural raw land markets, particularly for smaller parcels under $100,000. Rates are negotiable but typically match or slightly exceed bank rates. Terms are shorter — 5–10 year balloon notes are standard. Use a title company and record a Deed of Trust to protect both parties. Due-on-sale clauses are standard.
USDA Section 502 guarantees loans for rural homes — not bare land. The program requires a dwelling to be purchased or constructed as a condition of the loan. VA loans similarly require a construction plan tied to the land purchase (a "construction-to-permanent" structure). Neither covers raw acreage you plan to hold, camp on, or develop years later. Buyers who expect these programs to apply — a common misconception — arrive at closing unable to close.
Not all rural land is priced the same by lenders.
Lenders differentiate sharply by intended use and development stage. Using the wrong category at application leads to rate surprises at closing.
| Land Type | Typical Rate | Min Down | Max Term |
|---|---|---|---|
| Raw / Unimproved Land | 8–12% | 25–35% | 15–20 yr |
| Agricultural Land | 7–10% | 20–30% | 20–30 yr |
| Improved Lot (utilities at line) | 7–9% | 20–25% | 15–20 yr |
| Lot + Construction Loan | 7–9% | 20% | 30 yr |
Rates as of Autumn 2026. Actual rates vary by lender, credit score, loan size, and regional market conditions. Consult a licensed lender for a binding quote.
Annual Holding Cost Calculator
Your loan payment is only part of the cost. Add property taxes, road maintenance, and land stewardship mandates to get your true annual exposure.
Run Holding Cost Estimate arrow_forwardThe 10-Item Due Diligence Checklist
Financing is item ten. Before modeling payments, verify legal access, water rights, perc test results, and mineral title — the issues that make a parcel unfinanceable after you've committed.
Review the Checklist arrow_forward