How Much Land Can I Buy Using A Loan?

Land is expensive! Land prices are the highest they have ever been. That being said, land prices have decreased ever so slightly over the past couple years. And its true that the agricultural environment is a difficult one right now.

But if you are like me, when you think about buying land, all you see are dollar signs. But what if you could pay for that land over time and not all up front? In other words, what if you borrowed money from the bank for a land loan?

Now don’t get me wrong, land loans are some of the most difficult loans to get. The reason is that there isn’t a lot of value in raw land. Unless you can rent it out for some reason, raw land doesn’t produce income which means it doesn’t have a lot of collateral value.

But perhaps you wanted to buy just a small parcel or lot in order to build on at some point in the future. Maybe it isn’t such a bad idea to buy that now and start paying it off so that you can build on the land later.

Whatever your plan, there are resources out there to help you think ahead. This land loan calculator can help you calculate your land loan payment so that when you go to buy the farm or lot, you have an idea how much land you can afford.

Keep in mind, as difficult as it may be to get a land loan, there are also creative financing options through the USDA Farm Loan Programs. We hope you find the perfect land loan for your situation!