Can I roll land financing into a construction loan later?

Yes. Once you are ready to build, you can refinance your existing land loan into a single construction-to-permanent loan, using the land's equity toward your new mortgage down payment.

Updated: August 2026 • Verified v1.2

Raw Land & Lot Loan Financing Calculator

Finance & MathPopular

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Down = Price * DownPct; Principal = Price - Down; PMT = [Principal * (r*(1+r)^n)] / [(1+r)^n - 1]

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Understanding Your Results

Calculates required cash down payment across land types (raw, unimproved, improved), monthly principal and interest, property tax escrow, and total lifetime interest across 5, 10, 15, or 20-year terms.

Practical Guidance & Next Steps

Lenders consider raw land high risk because it produces no immediate rental income and has no collateral building; expect 30% to 50% down payments and 1% to 2% higher interest rates than home mortgages.

What is this?

A real estate financing utility that models loan terms and down payments specifically for land and lot purchases.

How does it work?

1. Select land type: Raw Undeveloped, Unimproved, or Improved Lot. 2. Enter purchase price, down payment percentage, interest rate, and term. 3. View required cash at closing, monthly payment, and total financing costs.

Why use it?

Accurately plans the capital required for purchasing land before building a custom home.

Technical Scope & Calculation Limitations

Models standard commercial and agricultural land loan financing.

Frequently Asked Questions

Improved lots with road access and utility hookups typically require 15% to 25% down. Unimproved land requires 25% to 35% down, while completely raw undeveloped acreage usually requires 35% to 50% down.

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