Lenders generally consider bank loans to purchase land a high risk. Since the land isn’t being used and there’s no home or business on the land yet, lenders know it can be much easier for a buyer to just walk away. But, it’s not impossible to obtain a bank loan to buy acreage.

However, you should expect the required down payment to be much higher than the down payment on a home mortgage. While you may be able to find a lender that will require 20 percent down, some will ask for 50 percent down. And, the interest rates will also be higher since it is a high risk loan.

The condition of the land and what you plan to do with the piece of property will affect the loan. If the land is considered as raw land, with no structures or utilities, it will be much harder to secure the loan. And, the ease of access to the property will also affect your chances of being approved.

Land loans typically are written for terms that range from 10 to 15 years. Having a solid plan of what you intend to do with the property can help you in obtaining the loan. If the lender knows that you’re serious about improving and using the land, they’ll be more likely to take a chance on the loan.