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.