How much down payment do you need for a land loan?

There is no national rule. Each lender sets its own, and it often asks for more than on a home. Put in the figure you are quoted. In the example, 20% down on a $100,000 lot means principal and interest of $787.79 a month. With 50% down it drops to $492.37.

What is a balloon payment on a land loan?

It's the balance left when the loan comes due before it is paid off. The payment is worked out as if the loan ran the full term, then the rest is due at once. In the example, a 5-year balloon on a 15-year schedule leaves $63,539.00 due with payment 60. You would pay it in cash or refinance it.

Why is a land loan payment higher than a mortgage payment on the same amount?

Mostly because of the shorter term. The example borrows $80,000.00 at 8.5% over 15 years for $787.79 a month. The same loan over 30 years would be $615.13, but you would pay interest for twice as long. Land loan rates are often higher too, so use the rate your lender quotes.

Does this calculator include the cost of building a house?

No. It covers the loan on the land only, plus property tax on the lot. When you build, the home is usually financed separately. Run the mortgage calculator for that loan, and add closing costs for each one.

Land Loan Calculator

See the monthly payment on a loan for a lot, the cash you need at closing, and what is left to pay if the loan has a balloon.

Private by design. Your numbers stay on this device.

Educational estimates only. Not financial, tax, or lending advice.

Published Oct 31, 2026

What is the monthly payment on a land loan?

In the example below, a $100,000 lot with 20% down at 8.5% over 15 years costs $887.79 a month. That is $787.79 of principal and interest on a $80,000 loan, plus property tax. You need $20,000 at closing before any closing costs.

Lenders set their own terms for land, so type in the down payment, rate, term and any balloon they quote.

Your land loan payment

Monthly payment

$887.79

$787.79 principal and interest plus $100.00 property tax.

Loan amount

$80,000

The price less your $20,000 down payment.

Cash at closing

$20,000.00

Your down payment. Add closing costs above.

Total interest

$61,802.73

Over 15 years, if you keep the loan to the end.

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Lenders set their own land loan terms, so use the rate, down payment, term and any balloon they quote. To build a home on the lot later, run the mortgage calculator for the home loan.

How the down payment changes the loan

More down means a smaller loan, a lower payment and more cash at closing.

The example lot at 8.5% over 15 years
Down payment	Loan	Principal and interest	Cash at closing
20%	$80,000	$787.79	$20,000
30%	$70,000	$689.32	$30,000
50%	$50,000	$492.37	$50,000

Closing costs are not included. Add yours in the calculator.

Land loans with a balloon

The payment stays the same, then the rest of the balance is due at once.

Some land loans set the payment as if the loan ran 15 years but make the balance due sooner. In the example, a 5-year balloon keeps the payment at $787.79 and leaves $63,539.00 due with payment 60, after $30,806 of interest. You would need that sum in cash, a refinance, or a construction or home loan that pays it off. The Consumer Financial Protection Bureau explains what a balloon payment is and when one is allowed.

Land loan vs a home mortgage

A shorter term raises the payment and cuts the interest.

Spread over 30 years at the same rate, the example’s $80,000 loan would cost $615.13 a month instead of $787.79. You would pay interest for twice as long, though. Land loans often carry higher rates than home loans too, so use the rate your lender quotes. Compare with the mortgage calculator, and price the costs of each loan with the closing cost calculator. The amortization schedule entry shows how each payment splits between interest and principal.

Land loan questions

How much down payment do you need for a land loan?: There is no national rule. Each lender sets its own, and it often asks for more than on a home. Put in the figure you are quoted. In the example, 20% down on a $100,000 lot means principal and interest of $787.79 a month. With 50% down it drops to $492.37.
What is a balloon payment on a land loan?: It's the balance left when the loan comes due before it is paid off. The payment is worked out as if the loan ran the full term, then the rest is due at once. In the example, a 5-year balloon on a 15-year schedule leaves $63,539.00 due with payment 60. You would pay it in cash or refinance it.
Why is a land loan payment higher than a mortgage payment on the same amount?: Mostly because of the shorter term. The example borrows $80,000.00 at 8.5% over 15 years for $787.79 a month. The same loan over 30 years would be $615.13, but you would pay interest for twice as long. Land loan rates are often higher too, so use the rate your lender quotes.
Does this calculator include the cost of building a house?: No. It covers the loan on the land only, plus property tax on the lot. When you build, the home is usually financed separately. Run the mortgage calculator for that loan, and add closing costs for each one.