Land Loan Down Payment Calculator
Calculate the down payment required for your land purchase by land type — raw, improved, or agricultural. Compare lender options, see owner financing terms, and model the full project cost including permits, utility hookups, and holding costs.
$
%
Minimum Down Payment
$30,000
20% of $150,000 · Loan: $120,000
Down Range
15%–30%
Typical Rate
7.5%
Monthly Payment
$1,424
Total Interest (10 yr)
$50,931
Water, sewer or well/septic available. Road access in place. Easier to finance.
Advanced
Land Type & Lender Comparison
Side-by-side down payment and rate comparison for all land types and lender options
$
yrs
| Land Type | Down Payment Range | Typical Down | Rate Range | Monthly Payment | Total Interest |
|---|---|---|---|---|---|
| Raw Land | 35%–50% | $60,000 (40%) | 8%–12% | $1,189/mo | $52,723 |
| Improved Land | 20%–30% | $37,500 (25%) | 6%–9% | $1,335/mo | $47,747 |
| Farm / Agricultural Land | 10%–25% | $30,000 (20%) | 5%–8% | $1,363/mo | $43,509 |
Raw Land
$60,000
40% down · 10% rate
Improved Land
$37,500
25% down · 7.5% rate
Farm / Agricultural Land
$30,000
20% down · 6.5% rate
Pro
Owner Financing & Total Project Cost
Seller financing calculator with balloon payment, full project cost including soft costs and holding
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%
%
yrs
yrs
Owner / Seller Financing
$1,987/mo
Down: $22,500 (15%)
Rate: 8% · 7 yr amort
Balloon in yr 5: $43,939
Bank / Institutional Loan
$1,395/mo
Down: $37,500 (25%)
Rate: 8.5% · 10 yr term
Strict credit / income requirements
Seller Down Payment
$22,500
15% — lower than bank
Balloon Balance (Yr {balloonYears})
$43,939
Must refinance or pay off
Total Interest (Seller)
$39,428
Total Interest (Bank)
$54,881
Balloon payment risk: If you cannot refinance or sell before the balloon is due, you may default. Always have a clear exit strategy — either refinance to a bank loan (once you have 24 months of payment history and the land has appreciated) or sell before the balloon date.
How to Use This Land Loan Down Payment Calculator
Enter your Land Cost and select the Land Type — raw land (no utilities), improved land (utilities/road access available), or farm/agricultural land. Select your Use Intent (build immediately, build later, or hold). The calculator shows the minimum and typical down payment for your situation, the expected rate range, and the monthly payment on a 10-year term.
The Advanced tier provides a side-by-side comparison of all three land types and a comparison of lender types (bank, credit union, USDA, owner financing). The Pro tier models seller financing with balloon payment and calculates the complete project cost including all soft costs and holding expenses.
Land Loan Down Payment by Type
Raw Land (no utilities, no road access):
Down payment: 35%–50% · Rate: 8%–12% · Term: 5–10 years
Improved Land (utilities available, road access):
Down payment: 20%–30% · Rate: 6%–9% · Term: 5–15 years
Farm / Agricultural Land:
Down payment: 10%–25% · Rate: 5%–8% · Term: up to 30 yrs (USDA)
USDA FSA Direct Loan: as low as 5% down for qualified farmers
Monthly Payment Formula:
Loan Amount = Land Cost × (1 - Down Payment %)
Monthly Payment = Loan × [r(1+r)^n] / [(1+r)^n - 1]
where r = Annual Rate / 12, n = Term in months
Example: Improved Land Purchase
$180,000 Improved Land — Planning to Build in 2 Years
| Land Cost | $180,000 |
| Land Type | Improved (utilities / road access) |
| Typical Down Payment | 25% = $45,000 |
| Loan Amount | $135,000 |
| Interest Rate (typical) | 7.5% (improved land) |
| Term | 10 years |
| Monthly Payment | $1,604/month |
| Total Interest (10 yr) | $57,480 |
| Perc test + survey + permits | $12,000 (est.) |
| Utility hookup | $15,000 (est.) |
| Holding cost (24 months) | $38,496 (24 × $1,604) |
| Total before construction | $110,496 |
After construction is complete, this buyer plans to refinance the $135,000 land loan balance plus construction costs into a conventional 30-year mortgage, eliminating the 7.5% land rate in favor of the current 30-year rate.
Frequently Asked Questions
Down payment requirements vary significantly by land type. Raw land (no utilities, no road access) typically requires 35–50% down because it is the riskiest collateral — hard to sell quickly, no income, no improvements. Improved land (utilities and road in place) requires 20–30% down. Farm and agricultural land is most accessible, with USDA Farm Service Agency direct loans available with as little as 5–10% down for qualified applicants, and conventional agricultural lenders at 10–25%.
Land is riskier collateral than a home for several reasons: it generates no rental income, it can be difficult to sell quickly (illiquid), it may have environmental or zoning complications, and there is no building on it that adds predictable value. Lenders price this risk into higher rates (often 2–5 percentage points above conventional mortgage rates) and shorter terms (5–15 years versus 30 years for homes). The shorter term also means higher monthly payments relative to the loan amount.
Yes, seller financing is very common for land because many institutional lenders avoid it. The seller acts as the bank — you make payments directly to them. Typical terms: 10–25% down, 7–10% interest, 5–10 year amortization with a balloon payment at year 5–7. The balloon requires you to either refinance to an institutional lender (possible after you have payment history), sell the land, or pay the balance. Always use a real estate attorney to document seller financing with a promissory note and deed of trust or mortgage.
The USDA Farm Service Agency (FSA) offers Direct Farm Ownership Loans up to $600,000 with down payments as low as 5%, fixed rates set by the government (typically 5–7%), and terms up to 40 years. There are income limits and the land must be used for farming operations. Guaranteed loans (through approved lenders) allow up to $1.825 million. The Beginning Farmer and Rancher program offers even more favorable terms for new farmers. Contact your local FSA office for current rates and eligibility.
Budget for these additional costs beyond the land price: boundary survey ($1,500–$5,000), percolation test for septic feasibility ($500–$3,000), soil tests if building, building permits and impact fees ($3,000–$20,000), utility extension to site — water, electric, and sewer can cost $5,000–$50,000 depending on how far from existing infrastructure, road access improvements, land clearing, and holding costs (monthly loan payments + property taxes) during the time before you build. Total soft costs often add $15,000–$80,000 to raw land projects.
Related Calculators
Sources & References
- USDA Farm Service Agency — Farm Ownership Loan Programs and Rates
- FDIC — Bank Lending Data: Land and Agriculture Loan Standards
- Farm Credit — Land Loan Products, Terms, and Requirements
- CFPB — Land Contracts and Owner Financing: Consumer Guide
- National Association of Realtors — Land Markets Survey: Pricing and Financing Data