How much (as a percentage) do lenders typically require as a down payment on undeveloped land?

Answer 1

Obviously it varies from state to state-- the lenders I talked to were in the 15-20% range.

If we did it as a combo loan for the house construction+ land, we could have done 0 down.

Answer 2

Raw land, 65-70% financing is usually as good at it will get. If it's a developed lot in a subdivision, upwards of 90% financing can be available. Last raw lot I financed was at 65% of it's value, interest-only payments at Prime + 2%. Right now, that's 10.25%.

Expect a short-term type of loan, like a 3 or 5 year adjustable rate loan with a balloon after the 3 or 5 years. Banks really don't like sitting on raw land, as if the loan goes bad, it's not as easily marketable as a home, and they are more likely to suffer a loss.

Answer 3

i was just lookin into buying some undeveloped land in indiana....the lender i was dealing with had one program i could have gone with 100% financing and nothin down besides all the closing costs , but typically you will be looking around the 20% mark as long as the land appraises for what you are paying for it. but check around for the best deal you can find, different lenders wil have different programs.

Answer 4

50% on raw, undeveloped land. less if you can put a house or mobile home on it.