Know Your Options When Financing Vacant Land

By LandCentral


You have multiple options when financing a vacant land purchase. When most people think of traditional financing, they think of a loan obtained through a national or community bank. These traditional options can be difficult to pursue, especially compared to the ease of financing at LandCentral.

National Bank

When financing at a national bank, there often is a 50-percent down payment required, along with a minimum credit score of 680. Typically, buyers are encouraged to apply for an adjustable rate mortgage, with a built-in balloon payment due one year from the origination date. Sometimes the balloon payment can be in excess of 10 percent of the value of your vacant land, which is on top of the 50-percent down payment. This option also does not allow for a guaranteed interest rate. After going through all the work of applying for this loan, you still could be denied.

Community Bank

At a community bank, trying to finance vacant land also will require a 50 percent down payment, with a minimum credit score of 650. If you have perfect credit, the community bank might be able to get you an interest rate of 12 percent, but with a credit score of 650, the interest rate is typically closer to 14 percent. Plus, these loans are required to be paid off in 12 months, which ultimately means higher monthly payments. To be approved for this loan, you need to have all of your building plans finalized and expect to make all improvements to the property within the first 12 months of owning it.


LandCentral preapproves everyone to finance vacant land. All it requires is browsing the website and picking out your dream property. To finance your vacant land purchase at LandCentral, a down payment of only $149 is required with no credit checks and no minimum credit score. When you decide to finance your vacant land through LandCentral you will be given a guaranteed 12.7 percent interest rate with no prepayment penalties. It offers lower monthly payments, with longer loan terms and no balloon payments.

Things do not always work out well when trying to finance vacant land through a bank. LandCentral makes it easy to finance vacant land, something the banks just don’t seem to understand. They banks would rather finance larger purchases such as houses. Hopefully knowing more information about financing vacant land will save you some time.

We want to hear about your experience financing vacant land (with us or with banks) so we know how we can make your land buying process easier. Let us know about it! Email us at

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