Land Loans: Best Personal Loans To Buy Land
Skip your down payment and get quick approval with a personal loan for land
| Lender | User rating | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
7.99% – 24.99% | 36 to 84 months |
$2.5k – $40k |
202 |
| Lender |
|
|---|---|
| User rating | |
| APR | |
| Term | 36 to 84 months |
| Amount | $2.5k – $40k |
| Min. credit score | 202 |
Best for: Superior customer service – Discover
- APR
- 7.99% – 24.99%
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- Has three support options if you’re struggling with payments
- 97% of LendingTree users who’ve worked with LightStream recommend the lender
- No fees
- No cosigners or co-borrowers
- Must have good credit and make at least $40,000 a year (individual or household) to qualify
If customer service is top-of-mind, check out LightStream. It offers borrower-friendly benefits that you might not find with a competitor.
For instance, it may let you postpone or temporarily reduce your payments if you run into trouble. You can also lengthen your loan term, reducing your monthly payments (but increasing your overall interest).
But to take advantage of these benefits, you have to qualify first, and LightStream’s eligibility criteria is a bit harder to meet compared to other online loan lenders. Not only do you need good credit and a moderate income, but you can’t add a cosigner or co-borrower. That means you have to qualify based on your credit alone.
You’ll need to meet these eligibility criteria to get a LightStream loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: +
Yes, you can use a personal loan to buy land
It’s not the most conventional financing choice, but you can use a personal loan to buy land.
Unlike other types of loans that are tied to a certain purchase (like auto loans or mortgages), you can use a personal loan to pay for nearly anything.
But there’s a reason why this strategy is unconventional — land loans (also called lot loans), home equity loans and home equity lines of credit (HELOCs) usually have much lower rates.
That doesn’t mean buying land with a personal loan is always a bad idea, but it won’t be a wise move for everyone.
When it could be a good idea to use a personal loan to buy land
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If you don’t want to make a down payment
Personal loans don’t require a down payment, but land loans do. -
If you are trying to snag a piece of land fast
You may be able to get same-day or next-day funds with a quick loan, helping you buy that land before someone else does. You won’t need to get a land appraisal, either. -
If you only need a small plot of land
A personal loan could work if you’re buying a small plot, perhaps for a tiny house. Personal loans come in smaller amounts than land loans. -
If you are buying a parcel for camping or hunting
Some loans for land require that you build a home on the land you’re financing. Personal loans do not, which could make them a reasonable choice if you don’t plan on building.
When it could be a bad idea to use a personal loan to buy land
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If you have the time and patience to get a land loan
Land loans take longer to get than a personal loan, but they usually come with much lower rates. Land loans use the land itself as collateral, helping bring down rates. Unsecured personal loans don’t require collateral but are riskier for the lender, making them more expensive for you. -
If you have fair or bad credit
Even if you have excellent credit, personal loans typically carry higher rates than land loans. In the first quarter of 2025, LendingTree users with credit scores between 800 to 850 saw an average annual percentage rate (APR) of 12.50% on personal loans. Land loans can start around 6.00% to 10.00%. -
If you need more than five to seven years to pay off your loan
Your loan term is the length of time you have to pay off your loan. Personal loans typically come with terms between 12 and 84 months (one to seven years). You can have up to 30 years with some land loans, home equity loans and HELOCs. -
If you are planning to build a house
An FHA construction loan finances the land and the home you plan on building. You’d only have to get one loan instead of two, and rates are generally lower than with personal loans.
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Alternatives that could be a better choice than a personal loan for land
Most personal loans are unsecured, which is why they usually have higher interest rates than other types of loans.
Below are four alternatives that are likely cheaper ways to finance your land purchase. But on the downside, you’ll have to use the land you’re buying or your existing home as collateral.
Land loan
Land loans use the land you’re buying as collateral. You can find them with some banks and specialty lenders. Generally, there are three types:
- Raw land loans → used to buy undeveloped land with no access to utilities or roads
- Unimproved land loans → used to buy land that has some utility access
- Improved land loans → used to buy land that has utility and road access; may be build-ready
USDA construction loan
If you have low or moderate income and want to buy land to build a home in a rural area, check out a USDA loan, specifically through the Single-Family Housing Guaranteed Loan Program. You can use the loan to finance the land and the building of your home. A down payment is not required.
FHA construction loan
FHA construction loans don’t have an income requirement, and you don’t need to buy in a rural area — but you do have to make a down payment. If you have a 580+ credit score, your down payment could be as low as 3.5%. Lower than that and you’ll have to put down at least 10%.
Home equity loans
A home equity loan lets you borrow against your home’s value. Out of all the alternatives listed here, a home equity loan is probably the riskiest. It uses your existing home as collateral, so you could end up without a roof over your head if you can’t pay. However, rates are generally lower than some other types of land loans.
Frequently asked questions
Every lender sets its own minimum credit standards, but you can qualify for a personal loan with a credit score as low as 300 (see ). But the lower your credit score, the higher your rate. Generally, personal loan rates start becoming more affordable once you hit 670.
Lenders also look at other factors like how much debt you already have and how much money you make per year. The best way to see if you’re eligible for a personal loan to buy land is to prequalify. Prequalification doesn’t hurt your credit score and it can give you an idea of what rates you can get from a lender.
No, a land loan is not the same as a traditional mortgage. A land loan is used to buy land, and a mortgage is used to buy a home.
Lenders decide their minimum mortgage amounts, so there’s no official definition of “small mortgage.” But typically, a mortgage under $100,000 is considered small.
Our methodology
We reviewed more than 30 lenders to pick the overall best personal loans for land. To make our list, lenders must offer personal loans with competitive APRs. From there, we prioritized lenders based on these factors:
Accessibility. Lenders are ranked higher if their personal loans are available to more people and have fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms. We favor lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience. For starters, we consider each lender’s reputation and business practices. We also look for lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.