Land purchase and loan terms
Carrying cost and risk options
This is a planning estimate. Actual land loan availability depends on lender appetite, collateral quality, appraisal, access, utilities, zoning, borrower strength, and whether the property has a credible construction exit.
| Line item | Amount | What it means |
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Monthly carrying cost includes principal and interest, property taxes, insurance, and HOA or road dues entered. It excludes utilities, site work, maintenance, surveying, permits, and any future construction loan costs.
Methodology notes
Payment and interest
The calculator uses a standard fixed amortizing loan formula for principal and interest, then estimates total interest across the entered term.
Suggested down payment range
Planning ranges are 35% to 50% for raw land, 25% to 40% for unimproved land, and 20% to 35% for improved land. Your lender may require more or less.
Balloon balance
When a balloon/reset year is entered, the balance is the estimated remaining principal after that many years of scheduled amortizing payments.
This calculator is educational and is not a loan approval, appraisal, legal review, zoning opinion, construction budget, or tax advice. Land loans are less standardized than residential mortgages. See full disclosure.
Land loan FAQ
Why do raw land loans need more down?
Raw land can be harder to value, harder to resell, and may lack utilities, road access, permits, or a near-term construction exit, so lenders often require more borrower equity.
Should I use a balloon loan?
A balloon can lower the initial payment only if the amortization is longer than the due date, but it creates refinance or payoff risk. The exit should be clear before signing.
Does improved land mean build-ready?
Not necessarily. Improved usually means access or utilities are better than raw land, but zoning, septic, well, permits, setbacks, and local building rules still need confirmation.