Calculator
Land loan calculator
Financing vacant land works differently from a mortgage: bigger down payment, higher rate, shorter term. This calculator sizes the monthly payment on a Michigan lot loan so you can plan before you buy.
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Improved, buildable lots finance at the low end of the 20–35% down range; raw acreage at the high end.
Planning a Michigan land purchase
Land loans price for risk: without a house to secure them, lenders ask 20–35% down, a rate a couple points above a mortgage, and a shorter term — so the monthly payment on even a modest parcel can surprise buyers expecting mortgage-like numbers. Improved lots with utilities and road access qualify more easily and cheaply than raw, unimproved acreage.
If you intend to build, compare this against a construction loan that can fold in the land — often the cheaper route. The full rundown, including Michigan land contracts, is in the land loan guide.
Frequently asked questions
What down payment do land loans require?
More than a home mortgage — typically 20–35%. Improved, buildable lots with road and utility access sit at the lower end; raw, unimproved acreage at the higher end. Because there's no house securing the debt, lenders offset the risk with a bigger down payment and a higher rate.
Why are land loan rates higher than mortgage rates?
Vacant land is harder to sell and value than a house, so lenders treat land loans as higher risk. Expect a rate a couple of points above a standard mortgage and a shorter term. Michigan credit unions are the main source and lend most readily on improved, buildable parcels.
Can I roll a land loan into construction financing?
Often yes. If you plan to build, a construction loan — or a lot loan that converts into one — is usually cheaper than buying land and financing the build separately. See our land loan guide and construction loan guide.