1. Lender land loans

Community banks and credit unions are more likely to offer land loans than large national banks. Your best bet is to find a lender with a presence near the land you want to buy. Local financial institutions know the area and can better assess the value of the land and its potential.

If you’re leaving the land undeveloped, interest costs will be high, Fleming says. Plus, a lender could require a down payment as high as 50 percent.

Some lenders, however, may be willing to take a lower down payment and charge lower interest rates if you plan to build on the land soon. Shop around before you apply.

Also, local lenders are more likely to offer longer repayment terms.