Can You Get a Mortgage for Land?

Yes, you can get a mortgage for land , but it’s a different game than financing a traditional home. Land loans are a real thing, but they come with their own rules, higher expectations from lenders, and often a few more hoops to jump through.

That said, whether you're dreaming about building a home from the ground up, starting a small ranch, or finally buying that little slice of Texas to call your own, there are legit ways to finance raw or developed land , even right here in the Rio Grande Valley.

Let’s walk through how it works, the types of land loans out there, what mortgage lenders typically look for, and how you can start strong.

First, What Is a Land Loan?

A land loan is money borrowed to purchase a piece of land that doesn’t have a house on it (yet). It might be totally raw (untouched), partially improved (maybe it’s got a road or utilities), or fully developed and ready to build on.

Now, here’s the thing , land loans tend to be seen as riskier by lenders than traditional mortgages. Why? Because it’s easier to walk away from vacant land than from a house you’re living in. Because of that, the terms are a little stricter.

Still, if you’ve got a plan, stable finances, and the right lender on your team, it’s 100% doable.

Types of Land Loans You Can Get

Raw Land Loans

This is for completely undeveloped property , think: no electricity, water, or roads. Since this kind of land needs a lot of prep before you can build on it, lenders may want a bigger down payment (often 35% or more) and offer shorter loan terms with higher interest.

Best for: Long-term investments or buyers who want to build eventually but aren’t in a rush.

Lot or Residential Land Loans

These are for parcels that are ready (or almost ready) to build on. There might be sewer lines, water, electric hookups, or road access in place. Because it’s less of a risk, lenders are usually a little more flexible here , you might see down payments closer to 10-20%.

Best for: People who are planning to build soon or have construction lined up.

USDA Rural Loans (for Eligible Buyers)

The U.S. Department of Agriculture offers some financing options for rural land , but only if you plan to build a primary home there and meet income and location requirements. Not every piece of land will qualify, but when it does, you could benefit from low (or even no) down payment.

Best for: First-time buyers or families looking to build in rural Texas.

Construction-to-Permanent Loans

If you already have plans to build right away, some lenders offer a loan that covers both the land and construction costs , rolled into one. Once the home is finished, it converts into a regular mortgage. It saves you from needing two separate loans.

Best for: Buyers who are shovel-ready and want to streamline the process.

What Do Lenders Look For in a Land Mortgage?

You might be wondering , what’s the catch? Honestly, it all comes down to risk and readiness. Lenders want to know that the investment makes sense and that you’re prepared.

Here’s what they’re checking for:

• Location & Zoning: Is it rural, agricultural, residential? Can it legally be built on?
  
  

• Access to Utilities: Land with water, electricity, or road access is less risky.
  
  

• Survey & Legal Boundaries: You’ll need an up-to-date land survey.
  
  

• Down Payment: Expect to put more money down than you would on a house.
  
  

• Credit & Income: Like any loan, strong credit and stable income help a lot.
  
  

• Plan of Use: Whether it’s building a home, farming, or investing , lenders want to see a plan.
  
  

Can You Use a Regular Mortgage for Land?

Usually, no , most traditional mortgages are for homes, not land. That’s why you need a specialized land loan or a construction loan if you’re planning to build soon. Some local banks, credit unions, or lenders like Movement Mortgage RGV offer flexible options based on your goals and timeline.

How to Get a Land Loan in the RGV

Here in the Rio Grande Valley, land ownership is a big deal. Whether you’re looking at Hidalgo County, Starr County, or somewhere more remote, there are lenders who know this market , and who won’t treat land financing like a one-size-fits-all thing.

Here’s how to get started:

1. Figure Out What You Want to Do – Build now? Build later? Hold as an investment?
   
   

2. Scope Out the Land – Get a survey, check zoning, utilities, and road access.
   
   

3. Talk to a Local Lender – This is where Movement Mortgage RGV comes in.
   
   

4. Get Prequalified – Know your budget and possible down payment needs.
   
   

5. Start the Application – Be ready to submit your credit, income, and land details.
   
   

Why Work with Movement Mortgage RGV?

At Movement Mortgage RGV, helping families own land or homes isn’t just a business , it’s part of something bigger. We’re proud to serve the communities of the Rio Grande Valley with transparency, fast turnarounds, and loan options that actually make sense for Texans.

We get that land ownership isn’t always about square footage , sometimes, it’s about building a legacy. Whether you’re putting up a barndominium in Donna, planning a ranchette in Edinburg, or simply looking to escape the city noise, we’ve got your back.

More than just lenders, we’re part of the community, and we bring that same heart into every loan.

Before You Apply: A Quick Checklist

Here’s what you’ll want to have lined up before you go mortgage hunting for land:

• Credit score of 680+ (the higher, the better)

• Clear land purpose (and maybe even blueprints if building)

• Land survey and legal description

• Proof of income and assets

• Down payment (10–35%, depending on land type)

• Patience , some land loans take longer than a standard mortgage
  
  

Ready to Own a Piece of Texas?

So, can you get a mortgage for land? Yes, you can. It just takes the right kind of loan, a bit more prep work, and a team that understands how things work around here.

If your heart’s set on owning land in South Texas, now’s the time to get the wheels turning. With the right lender and a solid plan, it’s not only possible , it’s totally within reach.

Whether you're looking to build your dream home or finally secure that weekend getaway plot, Movement Mortgage RGV is here to help you move from "maybe one day" to "day one."

Schedule a Consultation with our team and learn about the best land mortgage options in the Valley , no pressure, just real answers.