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The Texas Land Blog

How to Finance Land in Texas

So, you have finally found that perfect piece of property here in the State of Texas. You have made a great decision, especially because Texas is actually leading the way in economic recovery efforts. In fact, San Antonio and Austin are part of America’s fastest-recovering cities. Amongst the top of the list is San Antonio, Texas and Austin, Texas, with San Antonio ranking 2nd and Austin ranking 3rd, Omaha Nebraska was ranked 1st.

There is a good chance that the piece of property that you’re considering is on one our master planned communities. So, what is the next step to purchasing the land? If you are not going to pay cash for the property, then you will need to secure financing for the land if you are not going to build on it right away. (If you are going to build, though, you might want to take a look at our recent information about home construction loans.)

For a land purchase, you will most likely want to shop around a bit and talk to a few different lenders. Here are a few that you might want to consider:

University Federal Credit Union offers Land loans. With a UFCU land loan, you can finance as much as 90% of the lesser of the sales price or the appraised value of the land.

Texas Land Bank is also an option. Texas Land Bank offers a variety of flexible loan programs to meet all of your rural real estate and agricultural financing needs.

Texas Veterans Land Board is an option reserved for Veterans. Housing loans are available with 15, 20, 25 or 30-year terms. Home Improvement loans are available with two to 20-year terms.

Another option that you might consider is acquiring the land through a land contract. This might be an option for you if your credit is less than perfect. A land contract is a type of “private mortgage agreement” where the seller (the current land owner) agrees to finance the land, usually for a specified period of time, like 5 to 10 years, and usually through private land owners.


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  1. How to Finance Land Purchase | Finance Search

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