Can I buy land with a mortgage?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Raw land doesn't qualify for a standard home mortgage, but land loans and lot loans exist, usually with a larger down payment and shorter term. If you'll build soon, a construction loan can include the land.
USDA also finances some land tied to a new build in eligible areas. We'll match your plan — hold the lot or build now — to the right financing.
Land loans, not mortgages
Buying raw land usually uses a land loan rather than a standard mortgage, since there is no home as collateral. Land loans often need a larger down payment and carry higher rates.
If you plan to build soon, a construction loan can roll the land and the home into one.
Your best path
The right loan depends on whether you will build now or hold the land. A construction-to-permanent loan is often the most efficient route for future homeowners.
We will find the loan that fits your plans. Reach out and we will map your land purchase.
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.