Financing a Lot

Financing unimproved land is somewhat different that financing a home or cabin.  In most cases banks will require a 20% down payment and will arrange a 3 year balloon amortized over 20 or 25 years.  Typically these balloons can be automatically refinanced with a new rate based on current market conditions providing you are in good standing with the bank.  The length of the balloon payment in some cases can be negotiated based on credit worthiness.

Some financial institutions offer programs with 15, 10 or even 5 percent down payments.   Balloon payments and amortization schedules are similar to the first example.  These programs are less common, but are nice options in the marketplace today.

Fully amortized 10 or 15 year loans are also available, but down payments will almost certainly be at least 20% or greater.

These loans are typically held by the institution that originated the loan and not sold to the secondary market.  As a result, there is some room for negotiation in cases of exceptional credit worthiness.  The big picture needs to be considered when looking at financing unimproved land: when will you build, who will finance the construction loan, etc should all be considered.  Sometimes the best rate or loan period might cost you more in the long-run if you don't discuss or look at the big picture.