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At Debrosland, we believe everyone deserves the chance to experience the pride and joy of owning their own piece of dirt. There’s nothing quite like the feeling of standing on your own land—it’s an experience we want to make accessible to as many people as possible. While paying cash for land is the ideal situation, we understand that it's not feasible for everyone. That's why we're prioritizing bank financing as the most sustainable and accessible path to land ownership.
Bank financing allows buyers to secure competitive rates, longer terms, and structured payments that fit their financial goals, enabling them to own land responsibly and affordably. We have partnered with trusted lenders who specialize in land financing to help simplify the process for our buyers. With their support, we're able to guide you through every step, ensuring that financing your dream property is as straightforward and stress-free as possible.
We’re here to help you navigate the financing options available and find the solution that best suits your needs. Below, we’ve attached resources and a detailed breakdown of our bank financing partnerships and owner finance process. Feel free to reach out with any questions—our team is dedicated to supporting you every step of the way on your land investing journey!
A Land Loan is a specialized financing option for buyers looking to purchase vacant land with the intention of building later. These loans require larger down payments and higher credit scores because land, without a home, is considered riskier for lenders. Interest rates on land loans are typically higher than mortgage loans.
Key Features & Requirements:
✅ Down Payment: 20%-50% (varies by lender and land type)
✅ Credit Score: 680+
✅ Loan Term: 5-30 years
✅ Interest Rate: Higher than traditional home loans
🔹 Best For: Buyers who want to secure land first before starting construction.
Buying land typically requires cash, wire transfers, or certified funds, but did you know you can use a credit card to pay through your title company? With Plastiq.com you can fund your land purchase, escrow, and closing costs using a credit card—even if your title company doesn’t accept cards directly. This option provides flexibility, convenience, and the ability to earn rewards while securing your land purchase.
Why Use a Credit Card for a Land Purchase?
✅ Preserve Cash Flow – Keep more cash on hand for future expenses.
✅ Earn Rewards – Take advantage of cash back, points, or travel miles.
✅ Fast & Secure Transactions – No delays with loan approvals or waiting on wire transfers.
⚙️ How It Works & Key Details:
1️⃣ Enter Payment Details – Provide your title company’s information on Plastiq.com.
2️⃣ Pay with Your Credit Card – Use Visa, Mastercard, Amex, or Discover (2.85% fee paid by the buyer).
3️⃣ Plastiq Sends the Payment – The title company receives funds via ACH, wire, or check (only wire transfers are acceptable in real estate transactions).
🔹 No credit check required – uses your existing credit limit.
If you’re looking for a smaller loan to cover a down payment, construction costs, or land purchase, a Personal Loan may be an option. Unlike land or construction loans, personal loans are unsecured (meaning they don’t require collateral), but they typically have higher interest rates and shorter repayment terms. Some lenders offer secured personal loans, where borrowers can use savings accounts or vehicles as collateral to secure better rates.
Key Features & Requirements:
✅ Loan Amount: Varies by lender (usually up to $50,000)
✅ Credit Score: 600+ recommended (higher scores get better rates)
✅ Loan Term: 2-7 years
✅ Collateral: Required for secured personal loans; optional for unsecured loans
🔹 Best For: Borrowers needing quick funding for small land purchases or construction costs.
The FHA One-Time Close Construction Loan is an excellent option for buyers who want to purchase land and build a home with a low down payment. This loan is backed by the Federal Housing Administration (FHA) and is ideal for borrowers with low to moderate income or less-than-perfect credit. It combines land purchase, construction costs, and a permanent mortgage into one single loan.
Key Features & Requirements:
✅ Down Payment: 3.5% (for credit scores 580+) or 10% (for scores 500-579)
✅ Credit Score: 580+ (lower scores may qualify with a larger down payment)
✅ Loan Type: Construction-to-Permanent (One-Time Close)
✅ DTI Ratio: Generally 43% or lower
✅ Property Type: Must be a primary residence
🔹 Best For: Buyers looking for low down payment options who plan to purchase land and build their home immediately.
The USDA Construction Loan is a 100% financing option designed for buyers purchasing land in USDA-eligible rural areas and planning to build a home. This loan allows you to finance land, construction costs, and the final mortgage in a single loan. Unlike conventional loans, USDA loans offer low interest rates and do not require a down payment. However, the property must be in an eligible rural area, and borrowers must meet income requirements based on location and household size.
Key Features & Requirements:
✅ Down Payment: $0 down (100% financing)
✅ Credit Score: 640+ preferred (some lenders accept 580-620 with manual underwriting)
✅ Loan Type: Construction-to-Permanent (One-Time Close)
✅ DTI Ratio: Generally 41% or lower
✅ Income Limits: Must meet USDA rural housing income limits
🔹 Best For: Homebuyers in rural areas who want to finance land and home construction with no down payment.
The VA Construction Loan is an exclusive zero-down financing option for eligible veterans, active-duty military, and surviving spouses. This loan covers land purchase, construction costs, and mortgage conversion in one loan, meaning you don’t have to worry about multiple approvals or closings. Unlike traditional construction loans, the VA loan doesn’t require private mortgage insurance (PMI) and offers competitive interest rates.
Key Features & Requirements:
✅ Down Payment: $0 down (100% financing)
✅ Credit Score: 580-620+ (varies by lender)
✅ Loan Type: Construction-to-Permanent (One-Time Close)
✅ DTI Ratio: 41%-50% (depending on lender)
✅ Property Type: Must be a primary residence
🔹 Best For: Veterans and military personnel who want to buy land and build a home with no down payment.
A Land & Construction Loan is a financing option that allows you to purchase land and build a home immediately. These loans are short-term (6-24 months) and typically require interest-only payments during construction. Once the home is complete, the loan is either converted into a permanent mortgage or must be refinanced.
Key Features & Requirements:
✅ Down Payment: 20%-25%
✅ Credit Score: 680+
✅ Loan Type: Interest-only construction loan, then converts into a fixed-rate mortgage
✅ DTI Ratio: 43% or lower
✅ Property Type: Must be used for residential home construction
🔹 Best For: Buyers with strong credit who want to finance both land and home construction together.
If you already own a home, a Home Equity Loan (HEL) or Home Equity Line of Credit (HELOC) allows you to borrow against your home’s value to purchase land or cover construction costs. A Home Equity Loan provides a one-time lump sum, while a HELOC acts as a revolving credit line that you can draw from as needed.
Key Features & Requirements:
✅ Down Payment: None (based on available home equity)
✅ Credit Score: 620+ (higher scores get better rates)
✅ DTI Ratio: 43%-50% (most lenders prefer 43% or lower for best rates)
✅ Loan Term: 5-30 years (HEL); 10-year draw period for HELOCs
🔹 Best For: Homeowners looking to leverage home equity to buy land or finance construction.
If traditional land loans aren’t the right fit, there are other financing options available. From leveraging your assets to exploring business credit, these alternatives can help you secure land without a conventional mortgage.
Alternative Land Financing Options
✅ Asset-Based Loans – Borrow against investments, vehicles, or other assets instead of income.
✅ Friends & Family Loans – Arrange private financing with terms that work for both parties.
✅ Business Line of Credit – Use a business credit line to purchase land for investment or expansion.
✅ Credit Union & Bank Loans – Check with your local bank or credit union for other financing options and even the options mentioned on this list.
🔹 Best For: Buyers who need flexible, alternative funding outside of traditional land loans.
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As you narrow down your selection of potential land deals, it's crucial to know your options to finance the property of your dreams. When it comes to land, we always recommend looking at all your options, and we would start at your current bank or credit union to see what options the have for you. If it makes sense, utilize a mortgage broker, they could also be an invaluable resource for you in your financing search. In the flyers below you will get further insight into financing options available to you in your land investing journey. Take advantage of these resources so you can become a landowner!
Debrosland is dedicated to helping with your journey towards land ownership. With a commitment to excellence, we offer a diverse range of premium land parcels across the country, ensuring there's something for everyone. We tailor our owner financing options to fit your unique needs, making the process seamless, stress-free, and accessible. Let us be your partners in realizing your dreams of owning land. Reach out today to explore the possibilities and discover how our experienced team at Debrosland can guide you every step of the way.
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