There is no single answer, but there are clear factors that move the number up or down.
What affects the down payment
- The purchase price compared to similar land nearby
- The size and location of the parcel
- Access, utilities, and buildability
- The monthly payment you want
- Your payment history and stability
A typical range
A larger down payment usually lowers your monthly payment. Example: $25,000 price, $2,500 down (10%), 120 monthly payments of $335 at 12.9% APR (fixed). Example only. Not an offer to sell or an offer of credit. Actual price, down payment, APR and payment depend on the property and our review. Taxes, insurance and any closing costs are not included.
Plan for closing costs too
Set aside a little extra for document, recording, and title fees. We explain all costs in writing before you sign.
Run your own numbers
Use our sample terms calculator to see how price, down payment, and term change the monthly payment. Then send us the parcel and the numbers you are comfortable with.
This article is general information, not legal or financial advice, and not an offer to sell or an offer of credit.
All posts