Best Personal Loans To Buy Land in 2024

You could skip your down payment and get quick approval by using a personal loan for land.

Headshot of Carol Pope
Written by
Carol Pope
Updated July 30, 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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BHG Financial: Best for large land loans

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11.96% - 25.31%

36 to 120 months

$20,000 - $200,000

660

3.00% - 4.00%

Pros
  • $200,000 loan could buy a large parcel of land
  • Competitive maximum APR
  • Might not ask for as much paperwork compared to other lenders
Cons
  • Charges an origination fee on every loan
  • Mobile app only applies toward BHG credit cards, not loans
  • Funding could take up to five days

What to know

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Land can get expensive. Depending on how much you’re buying, you might need a lot of funding. At $200,000, BHG Financial offers some of the largest personal loans around (with long repayment terms, to match).

One downside to BHG Financial is its lack of digital footprint. You can apply for an online loan on BHG Financial’s website. But at the time of this writing, its mobile app is not set up for loan management.

Read our full BHG Financial personal loan review.

How to qualify

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BHG Financial states that its average customer has a credit score of 744 with an annual income of $241,000 a year. It may be challenging to get BHG Financial’s lowest rates. But to qualify, you only need a 660 score.

BHG Financial offers prequalification, so you can check your eligibility without damaging your credit. BHG Financial loans are not available in Illinois or Maryland.

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Discover: Best for superior customer service

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(1,594)
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7.99% - 24.99%

36 to 84 months

$2,500 - $40,000

720

None

Pros
  • Three repayment assistance options in case of financial hardship
  • Earned 4.9/5.0 stars from LendingTree users
  • Mobile app has more than 10 million downloads, with an average user rating of 4.7/5.0 on both Apple and Android
Cons
  • No cosigners or co-borrowers
  • Must have good credit and moderate income
  • $39 late payment fee

What to know

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Discover offers personal loans with customer-centric benefits. For instance, it may let you postpone or temporarily reduce your payments if you run into trouble. The same goes for permanently extending your loan term.

It’s worth noting that out of all the lenders on this list, Discover has the highest minimum credit score requirement. If you have bad credit, you’ll need to look elsewhere.

Read our full Discover personal loan review.

How to qualify

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Outside of having a credit score of at least 720, you must meet the requirements below to get a personal loan from Discover:

  • Have a minimum annual income of $40,000 (household or individually)
  • Be at least 18 years old
  • Have a Social Security number, email address, physical address and internet access
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LightStream: Best for excellent credit

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7.49% - 25.29% (with autopay)

24 to 84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000 - $100,000

Not specified

None

Pros
  • May beat competitors’ rates with Rate Beat program
  • No fees whatsoever
  • Offers a 0.50% APR discount for autopay
Cons
  • Can’t check eligibility without damaging credit
  • Can’t change your payment due date
  • Customer service is not available on Sundays

What to know

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LightStream has competitive rates for borrowers with excellent credit, and you could save even more through its Rate Beat program. If a competitor offers you a loan with a lower rate, LightStream might beat it by 0.10 percentage points.

Although LightStream doesn’t specify its minimum credit score requirements, only those with good to excellent credit are eligible. This lender also doesn’t offer prequalification. That means you can’t check rates without a hard credit hit.

Read our full LightStream personal loan review.

How to qualify

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LightStream doesn’t disclose exactly what it requires in its applicants, but it gives a pretty good idea. Aside from at least good credit (670+), most of the applicants it approves have:

  • Several years of credit history with a diverse mix of accounts (credit cards, mortgage, auto loan, etc.)
  • Ample savings in a checking account, savings account, retirement accounts and/or investment accounts
  • Demonstrated the ability to pay back their LightStream loan, considering their current level of debt
  • Few to no late payments on their credit history
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Upgrade: Best for small land loans

(2,270)
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(2,270)
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9.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

1.85% - 9.99%

Pros
  • Don’t need perfect credit
  • Offers secured and unsecured loans
  • Can add a co-borrower
Cons
  • Every loan gets an origination fee
  • May find better rates elsewhere if you have excellent credit
  • Can’t get lowest rate unless you’re consolidating debt

What to know

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With a $1,000 minimum loan amount, a loan marketplace like Upgrade could be a good solution if you’re buying a small parcel of land. And unlike many lenders, you can choose between a secured or unsecured loan. You’ll use your car as collateral, so this strategy comes with risk. At the same time, secured loans typically have lower rates.

Unfortunately, you can’t get Upgrade’s lowest rates on a personal loan for land. For that, you’d need to take out a debt consolidation loan and allow Upgrade to pay your creditors directly.

Read our full Upgrade personal loan review.

How to qualify

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You might qualify for an Upgrade loan if you have a credit score of 580 or better and are:

  • A U.S. citizen or permanent resident, or you live in the U.S. with a valid visa
  • At least 18 years old (19 in Alabama and other states with a higher age of majority)
  • Able to provide a valid email address and verifiable bank account
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Upstart: Best for bad credit

(16,930)
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(16,930)
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7.40% - 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • May approve you with bad or no credit
  • Hardship program available if you can’t pay
  • Can compare rates from multiple lenders
Cons
  • Bad credit loans likely come with a high origination fee
  • No phone applications (must apply online)
  • No cosigners or co-borrowers

What to know

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It can be hard to get a loan with bad or no credit. Upstart, accepts scores as low as 300. It might even approve you if you have no credit (granted that you meet some education requirements — more details below). And since Upstart is a personal loan marketplace, you can compare offers from its partner lenders with just one application.

But if Upstart approves you with bad credit, it doesn’t mean your loan will come cheap. You could face a hefty origination fee (the highest of all the lenders on this list).

Read our full Upstart personal loan review.

How to qualify

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Upstart has transparent eligibility requirements. You must have:

  • A minimum credit score of 300
  • Graduated or be enrolled in a degree program if you don’t have credit
  • A Social Security number, U.S. address, email address and personal checking account
  • A job or job offer that starts in six months (or another source of income, like Social Security payments)
  • A debt-to-income ratio lower than 50% (45% in Connecticut, Maryland, New York and Vermont)
  • No bankruptcies in the last year, and no current delinquent accounts
  • Fewer than six inquiries on your credit report (not including student loans, auto loans and mortgages)
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What is a personal loan for land?

It’s not the most conventional financing option, but you can use a personal loan to buy land. Unlike other types of loans that are tied to a certain item (like auto loans and mortgages), you can use a personal loan to pay for nearly anything.

Unsecured personal loans don’t require collateral and are the most common type of personal loan. Unsecured loans can carry higher rates than secured loans (including land loans — those usually use the land you’re buying as collateral). However, you don’t have to worry about losing your property if you can’t pay. And missed payments will wreak havoc on your credit score, no matter the type of loan.

On this page

 What’s the average cost of land?

The average cost of one acre in the U.S. is currently $16,000, but expect to pay more for a beachside lot than undeveloped acreage in the midwest. Prices vary based on factors like location and whether you’re buying raw land or improved.

Pros and cons of using a personal loan for land

ProsCons
 Quick process. You could have funds in your bank account the same day you apply.

 No down payment. Personal loans don’t require out-of-pocket fees or payments.

 No collateral. Your lender can’t foreclose on your land (or current home) if you can’t pay back your loan.

 Fewer fees. Some personal loans have an origination fee, but overall, traditional land loans carry more fees. 		 Might not be cost effective. Out of all the ways you can finance land, personal loans probably won't have the lowest rates.

 Smaller loan amounts. A personal loan might not be enough for large plots of land.

 Shorter repayment terms. You’ll likely have less time to pay what you owe if you buy land with a personal loan.

Personal loan for land vs. traditional land loan

Most people go with a traditional land loan (or lot loan) to purchase land. Loan types here include:

  • Conventional land loans
  • FHA land loans
  • VA land loans
  • USDA loans
  • Construction loans
  • Home equity loans
  • Home equity lines of credit (HELOCs)

Note that some of the options above aren’t specific to purchasing land (home equity loans and HELOCs). Instead, like personal loans, you can use these for almost anything. Home equity loans and HELOCs use your current home as collateral. Traditional land loans work by using the land you’re buying as collateral.

Buying land with a personal loan presents unique challenges. For one, land loan rates are generally lower than personal loan rates. In the table below, you’ll find a few more factors to think about when reviewing your loan options.

Personal loanLand loan
Down paymentNone15%-35%
Loan terms12 to 84 months (sometimes longer)5 to 30 years 
Credit score requirementsSome lenders accept scores as low as 300, but you may need 670+ for the loan to be affordableAround 700, depending on the type of land loan
Collateral requirementsNone (unless you choose a secured loan)Uses the land you’re financing or your current home as collateral, depending on the type
Approval processUsually easy, but you may need to provide documents like your ID and paystubsMore involved, and may require appraisals, title companies and realtors

That said, a personal loan could make sense in some situations. Since they have lower loan amounts, you could use a personal loan to finance a tiny house and a small piece of land to put it on.

A personal loan might also be handy if you’re buying an undeveloped parcel for camping or hunting. Some land loans (like FHA land loans) require that you build a home on the land you’re financing. Personal loans do not.

How to compare personal loans

APR: Annual percentage rate (APR) measures the total cost of your loan, including interest and fees. The higher your credit score, the lower your APR. Borrowers with better credit pose less risk for the lender, so they offer lower rates to entice their business.

Loan amounts: Loan amounts are important if you’re considering buying land with a personal loan. You can only borrow from a personal loan once. If you run out of money, you’ll need to take out another loan (or find another source of funding).

Loan terms: A loan term is how long you have to pay back what you owe. Usually, the longer your loan term, the lower your monthly payment. But the longer you take to pay off your loan, the more interest you’ll probably pay. Use our personal loan calculator to see how term length can impact your loan payment and overall interest.

Origination fees: Some lenders charge an origination fee (especially if you have so-so credit). Origination fees are commonly a percentage of your total loan amount. The lender will deduct this fee from your loan before sending it to you.

Customer service experience: The Consumer Financial Protection Bureau (CFPB) maintains a database of consumer complaints against lenders. Use it — along with LendingTree personal loan reviews — to get an idea of a lender’s customer service.

Digital footprint: Not all lenders have mobile apps, and if they do, not all are created equal. If you prefer to handle your business online, make sure that the lender you choose has the infrastructure to accommodate.

How to apply for a personal loan

Applying for a personal loan is straightforward. If you get an online loan, it usually only takes a few minutes. Here’s what you could do to ensure a smooth process.

1. Check your credit

Get your free credit score with LendingTree Spring. After you’ve gotten a few offers, check out personal loan statistics by borrower credit score. Find your credit band and see how a lender’s rates stack up to the average.

2. Prequalify and compare

Prequalifying for a personal loan lets you check rates without hurting your credit score. You’ll answer a series of questions about yourself and your financial goals. With a single application, LendingTree can help you compare multiple offers from the nation’s largest network of lenders.

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3. Apply for your loan

Applying for your loan is a lot like prequalifying, but you may need to provide documents like pay stubs and bank statements. Most lenders can give near-instant approval decisions.

4. Receive and repay your loan

If approved, you could get a same-day loan, or you may need to wait up to a week — it depends on the lender. Your first loan payment will be due 30-45 days after the lender has sent your money. Consider signing up for autopay (especially if the lender offers an APR discount for doing so).

How we chose the best land loans

We reviewed more than 30 lenders to determine the overall best personal loans for land. To make our list, lenders must offer personal loans with competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our standardized rating system, the best land loans come from: BHG Financial, Discover, LightStream, Upgrade and Upstart.

Frequently asked questions

Lot loans are among the most common ways to buy land, but a personal loan can be a viable option. Although personal loans come with higher rates, they don’t require a down payment or collateral. They can also be easier to get if your credit isn’t perfect.

No, a land loan is not the same as a traditional mortgage. Land loans are riskier for the lender (borrowers are more likely to default on a land loan than a mortgage). As a result, land loans usually have higher interest rates than mortgages (but lower rates than personal loans).

Lenders decide their minimum mortgage amounts, so there’s no official definition of “small mortgage”. But you could consider a mortgage from $25,000 to $100,000 as small. Some lenders might not have a minimum mortgage amount at all.