Land Loan Calculator
Raw land is harder to finance than a house — loans are typically shorter term, higher rates, and often come with a balloon payment. This calculator handles both standard amortizing loans and balloon structures.
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Buy vs. Finance Comparison
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Why land loans are different
Most lenders treat raw land as higher risk than improved property. As a result, expect shorter loan terms (5–15 years), higher down payments (20–50%), and rates 1–4% higher than conventional mortgages.
The balloon payment structure is common: you pay interest-only or low amortizing payments for a set period, then the remaining balance is due in full. If you can't refi or sell, you risk default.
Balloon = Original Loan Amount − Amount Paid Off by Year N
Balloon payment risk
If you can't refinance or sell before the balloon is due, you could be forced into a difficult position. Factor this into your exit strategy before taking a balloon structure.
If you plan to build: compare construction loans
Construction-to-permanent loans typically have lower rates than raw land loans. You finance the build, then roll into a standard mortgage — one loan, one closing. If your plan involves a house eventually, this path usually pencils out better.
For educational purposes only. Not financial or legal advice.