How to Buy Land: 8 Steps, Checklist and Land Loans

To buy land, decide what you will use it for and what you can spend, find a parcel, and confirm its zoning, legal access, utilities and soils. Then make a written offer with contingencies, order title work and a survey, arrange a land loan or pay cash, and close by taking a deed.

Pillar, a land research software company, wrote this guide. Each rule, form and program links to the agency that published it, and we checked every source on November 14, 2026. Contract forms and land law differ by state, so each example applies only where named. This is general information, not legal, lending or investment advice. Confirm your deal with a real estate attorney, a surveyor and a lender licensed in your state.

How to buy land: the 8 steps

1. Set the use and the budget

Write the use down first: one house, a farm, recreation, or a project with several homes. The use decides which zoning, access, utility and soil answers count as a pass.

Then budget past the price: a survey, soil tests, utility connections and closing costs come on top of it.

2. Find land for sale

Listing sites, land brokers, auctions and owners you contact directly are the usual routes. Identify the parcel by its county parcel number and legal description, not by the pin on a listing map.

If you buy a lot from a developer, a federal law may apply. The CFPB says the Interstate Land Sales Full Disclosure Act requires the developer of a subdivision "containing one hundred or more nonexempt lots" to register it and to give lot buyers a property report "before a sales contract is signed" (CFPB). A contract for a lot that is not exempt may be revoked by the buyer "until midnight of the seventh day following the signing," or later if state law requires (15 U.S.C. 1703(b)). Unless a sale is structured to evade the act, lots in a subdivision of fewer than 25 lots are exempt, among others (15 U.S.C. 1702(a)).

3. Check zoning and access

Find the parcel on the city or county zoning map and record the full district label. Then open that district in the current code and read the permitted uses, minimum lot size and setbacks. Our R1 zoning guide compares single-family districts in ten codes. A future land use map is policy, not zoning; see zoning vs. future land use.

Access is a separate question from frontage. Touching a road does not show a recorded right to use it or permission for a driveway. Our guide to road frontage vs. legal access covers the documents to ask for. If the parcel is landlocked, read how an easement by necessity is proved before you count on one.

4. Check utilities, soils and environmental limits

• Water, sewer and power. Ask each provider in writing whether it can serve the parcel and on what conditions. Our will-serve letter guide has a request template.
• Septic. Where there is no sewer, a house usually needs a permitted septic system. The EPA says it "does not regulate single family home septic systems" and that in most states local health departments issue the permits under state law (EPA). See septic vs sewer and what a perc test decides.
• Soils. USDA's Web Soil Survey publishes soil data from the National Cooperative Soil Survey. It is a screening map, not a site test. Our soil survey guide shows how to use it.
• Flood. FEMA calls its Flood Map Service Center "the official public source for flood hazard information" produced for the National Flood Insurance Program.
• Wetlands. The U.S. Fish and Wildlife Service's Wetlands Mapper is a first look. The agency says its data should not be read as showing which wetlands federal, state, Tribal or local laws cover. A wetland delineation is the field survey that marks the boundary.
• Contamination. If the land has had a commercial, industrial or dumping use, a Phase 1 environmental site assessment reviews its records and condition before you buy.

5. Make an offer with contingencies

A contingency is a contract term that lets you cancel if a check fails by a deadline, usually with your earnest money back. How it is written depends on the state's form. Two forms published by state real estate commissions show two designs.

• Texas: one option period. The TREC Unimproved Property Contract (Form 9-18, effective July 1, 2026) is for property "that does not have physical buildings, additions or fixtures on the land" (TREC). The buyer pays an option fee, and the seller grants "the unrestricted right to terminate this contract" within a number of days the parties fill in. A buyer who terminates in time gets the earnest money back but not the option fee. If no option fee is stated, or the buyer does not deliver it on time, the buyer does not have that right (paragraph 5).
• Colorado: a deadline for each check. The Colorado Real Estate Commission's Contract to Buy and Sell Real Estate (Land) (form CBS4, mandatory from January 1, 2026) has separate dated deadlines for title, appraisal, survey, inspection, environmental inspection, water rights and mineral rights, among others (section 3.1). The buyer may terminate over "any unsatisfactory zoning" if the seller receives written notice on or before the due diligence documents objection deadline (sections 10.6.3 and 24.1). A deadline left blank or completed with "N/A" or "Deleted" does not apply, and "the corresponding provision containing the deadline is deleted" (section 3.2). Check that every protection you need has a date filled in. Its loan availability clause warns that if the seller is not in default and does not receive the buyer's written notice to terminate on time, "BUYER'S EARNEST MONEY WILL BE NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey)" (section 5.2.2).

Neither form is a model for another state. Whatever the form, ask for enough days to finish the slowest study on your list.

6. Order title and survey work

The title company issues a title commitment, which lists what must happen before closing and what the policy will not cover. Read each exception document, especially easements and deed restrictions. Those are private limits, separate from zoning.

A boundary survey locates the lines and corners on the ground. If you will build, a topographic survey maps the elevations a site plan is drawn on.

Then use the objection deadline. Under the Texas form, a buyer who does not object to the commitment and survey within the time allowed waives the right to object, except for the requirements in the commitment's Schedule C (paragraph 6D).

7. Arrange financing

Land is bought with cash, a loan from a bank or Farm Credit lender, a USDA program, or financing from the seller, all covered below. Talk to lenders before you make an offer, so the loan deadline in your contract is one you can meet.

8. Close

At closing the seller delivers the deed and the buyer pays. In the Texas form, the seller "shall execute and deliver a general warranty deed conveying title to the Property to Buyer" and the buyer pays "in good funds acceptable to the Escrow Agent" (paragraph 9B).

If a lender finances the purchase as consumer credit, federal mortgage disclosures can apply. The CFPB's compliance guide (October 2017, section 4.1) lists "Loans secured by vacant land or by 25 or more acres" among the loans subject to them. It says the rule generally does not apply to a lender that is not a creditor under Regulation Z.

After closing, ask the closing agent for the recorded deed and keep it with the survey and the title policy.

Buying land checklist: free checks first, paid studies last

Run the checks in this order, so a free one can end the deal before you pay for a study. Each line gives what the check answers and which contract term protects you if the answer is bad, in the terms of the Texas and Colorado forms above. Your state's form will use its own. We list no prices, because they depend on the site.

Free, from a desk

1. Zoning map and code. Answers: is my use allowed, and what lot size and setbacks apply? Protected by: an option period, or a zoning termination right like Colorado's section 10.6.3.
2. County parcel, tax and deed records. Answers: who owns it, how is it described, and are the taxes paid? Protected by: the title objection deadline.
3. FEMA flood map. Answers: is any part in a mapped special flood hazard area? Protected by: an option period. The Texas form also lets the buyer object to "any portion of the Property lying in a special flood hazard area (Zone V or A)" on the current FEMA map (paragraph 6D).
4. Wetlands Mapper and Web Soil Survey. Answers: are there mapped wetlands or soil limits worth testing? Protected by: an option period. These maps do not replace site studies. They tell you which ones to order.
5. Recorded plat and covenants. Answers: do easements or private restrictions limit the use? Protected by: an option period. The title objection deadline covers less in Texas: the form's general right to object to title matters leaves out "Restrictive covenants common to the platted subdivision" and "Utility easements created by the dedication deed or plat of the subdivision" (paragraphs 6A and 6D). The buyer may still object to "any exceptions which prohibit the following use or activity," followed by a blank. Read the plat and covenants before the option period ends, and ask your attorney what belongs in that blank.

Free, by phone or letter

6. Planning office and road agency. Answers: is my reading of the zoning right, who maintains the road, and can I get a driveway permit? Protected by: an option period.
7. Health department and utilities. Answers: how is a septic system approved here, and will each utility serve the parcel? Protected by: an option or inspection period. Colorado's inspection clause covers utility service to the property (section 10.3).

Paid, usually after the offer is accepted

8. Title commitment. Answers: can the seller deliver title, and subject to what? Protected by: the title objection deadline, with the Texas limits in item 5.
9. Boundary survey. Answers: where are the lines, how many acres, and does anything cross them? Protected by: the survey objection deadline. The Texas form also lets the parties tie the price to the surveyed acreage (paragraph 3D).
10. Perc test or soil evaluation, and wetland delineation. Answers: can the lot have a septic system, and how much of the site is wetland? Protected by: an option or inspection period long enough to get the results.
11. Phase I environmental site assessment. Answers: are there signs of contamination? Protected by: an environmental deadline like Colorado's section 10.6.4, which is extended by a number of days the parties fill in if the Phase I recommends a Phase II.
12. Topographic survey. Answers: what will grading involve? Protected by: the inspection period.
13. Appraisal. Answers: does the value support the price and the loan? Protected by: an appraisal objection deadline. In Colorado's form, the buyer may terminate or object if the appraised value is less than the purchase price (section 6.2.1).

Raw land vs. improved land vs. entitled land

Listings use these words loosely, and official sources use them differently.

• Raw land. The federal bank lending guidelines list raw land as a loan category without defining it. They define a land development loan as credit "for the purpose of improving unimproved real property prior to the erection of structures," such as laying sewers, water pipes, utility cables and streets (12 CFR Part 365, Appendix A). As we read it, raw land is land before that work.
• Improved land. In listings it usually means a lot with a road and utilities. That is trade usage, not a legal definition. The Interstate Land Sales Full Disclosure Act uses "improved land" for land with a residential, commercial, condominium or industrial building on it. The lending guidelines' improved property category includes completed commercial property and farmland, ranchland or timberland in ongoing agricultural production. The Texas form uses the test quoted in step 5: no physical buildings, additions or fixtures on the land (TREC). If utilities or other improvements are installed on a vacant lot, ask which form applies.
• Entitled land. We found no federal definition. Developers use it for land that already holds approvals a project needs, such as zoning or an approved plat. Ask which approvals exist, and whether they expire or pass to a buyer.

How do land loans work?

A land loan is credit secured by the land. Official sources document how it differs from a home mortgage.

Fannie Mae does not take it. The Selling Guide's list of properties whose mortgages Fannie Mae does not purchase or securitize includes "vacant land or land development properties" (B2-3-01, dated September 3, 2025). As we read it, that is one reason terms vary from lender to lender. We found no federal source that sets the rate or length of a land loan, so this guide gives none. Ask each lender for the term, whether the payments end in a balloon, and the down payment.

Bank regulators set lower loan-to-value limits for land. The Interagency Guidelines for Real Estate Lending Policies are published for FDIC-supervised banks in 12 CFR Part 365, for national banks in Part 34 and for state member banks in Part 208. They say institutions "should establish their own internal loan-to-value limits," which "should not exceed" these supervisory limits:

• Raw land: 65 percent
• Land development: 75 percent. A 2005 interagency FAQ on residential tract developments of five or more units puts "land development or finished lots" here.
• Construction of commercial, multifamily and other nonresidential property: 80 percent
• Construction of 1- to 4-family residential property: 85 percent
• Improved property: 85 percent
• Permanent mortgages and home equity loans on owner-occupied 1- to 4-family homes: no limit set, but at 90 percent or more at origination the institution should require mortgage insurance or readily marketable collateral

These are limits on banks, not offers to borrowers. A bank may set lower limits of its own. The guidelines also say it "may be appropriate in individual cases" to lend above the limits, "based on the support provided by other credit factors," within a cap tied to the bank's capital. Some guides call the gap below each limit a down payment that the FDIC requires. The text does not say that.

For a loan to buy existing property, "value" is "the lesser of the actual acquisition cost or the estimate of value." As we read it, on raw land bought for $100,000 and appraised at $100,000 or more, a loan at the 65 percent limit is $65,000. The figures are illustrative.

Farm Credit and USDA have their own rules.

• Farm Credit. Farm Credit describes itself as "a nationwide network of customer-owned cooperatives" whose customers include farmers, ranchers and rural homebuyers (Farm Credit). Under its regulator's rule, funds may not be advanced on a long-term real estate mortgage loan if the balance after the advance would exceed 85 percent of the real estate's appraised value, or 97 percent as section 1.10(a) of the Farm Credit Act provides. A loan with private mortgage insurance may exceed 85 percent to the extent the insurance covers the excess. The real estate counted toward the limit "must be comprised primarily of agricultural or rural property" (12 CFR 614.4200(b)(1)). Paragraph (b)(2) still lets the lender advance funds for taxes or insurance premiums on the real estate and take other actions needed to protect its collateral position. An action that exceeds the loan-to-value limit must follow its board's policy and be adequately documented in the loan file.
• USDA farm loans. The Farm Service Agency's Farm Ownership Loans are for farmers and ranchers. Applicants need farm education, training or experience, among other requirements. The page lists direct loans of up to $600,000 and a Down Payment Program that helps beginning farmers and ranchers "by requiring only a 5% down payment."
• USDA home loans. As we read the program pages, these finance a home, not bare land held for later. Section 502 Direct funds can be used "to build, repair, renovate or relocate a home, or to purchase and prepare sites." Section 502 Guaranteed loans may be used for a site "with a new or existing dwelling." The next section covers who qualifies.

Seller financing. The seller takes payments instead of a bank. You negotiate the down payment, rate and term with the seller, within any state or federal limit that applies. Colorado's form warns that "Unless the transaction is exempt, federal and state laws impose licensing and other requirements and restrictions on sellers and private financiers" (section 4.7). Have the financing documents reviewed before you sign. Our land contract guide covers how these deals work and what happens on default.

How to buy land with no money

We found no federal program that lends an individual the whole price of bare land for any use. The sources above leave four routes, each with conditions.

• A USDA home loan, if you will build and live there. USDA says that under Section 502 Guaranteed, eligible applicants may "purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing." Among other requirements, household income cannot exceed 115 percent of the median and the home must be a primary residence. Section 502 Direct, for low- and very-low-income applicants in eligible rural areas, typically requires no down payment, though applicants with assets above the limits may have to use some of them.
• The FSA Down Payment Program, if you are a beginning farmer or rancher. It requires 5 percent down, not zero.
• Seller financing. A seller may accept little or nothing down. That is a negotiation, not a program.
• Other collateral. The lending guidelines count "any readily marketable collateral and other acceptable collateral that secures the extension of credit" in the loan-to-value ratio. As we read it, pledging other assets can lower the ratio without cash. The decision is the bank's.

No down payment does not mean no costs. USDA says that in the Section 502 Guaranteed program, "Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction." Ask the lender which costs the loan can cover, and budget cash for the checks above and whatever is left.

How to buy land to build a house

Do steps 3 and 4 against the house, not the land: the zoning must allow it, the lot needs legal access, and it needs sewer or a septic approval. Road access is on Fannie Mae's list too: it excludes "properties that are not readily accessible by roads that meet local standards."

Then decide whether to finance the lot and the house together. The CFPB describes a construction loan as "usually a short-term loan that provides funds to cover the cost of building or rehabilitating a home," with the money typically advanced as construction progresses (CFPB). You may be able to convert it to a conventional mortgage. If it does not convert automatically, you may have to reapply.

The lending guidelines apply the final phase's limit to a loan that funds several phases of one project, as long as disbursements do not exceed actual development or construction outlays. As we read them, a single loan for a lot and a 1- to 4-family house falls under the 85 percent construction limit, not the 65 percent raw land limit.

Buying land to subdivide or build several homes

Two things change when the plan is more than one home.

• Dividing the land is regulated. Thresholds are set by state law. In Washington, dividing land into five or more lots, tracts, parcels, sites or divisions for sale, lease or transfer of ownership is a subdivision. Dividing it into four or fewer is a short subdivision. A city or town may raise that number to as many as nine by ordinance. A county that plans under RCW 36.70A.040 and has adopted a comprehensive plan and development regulations complying with chapter 36.70A may do so only in an urban growth area (RCW 58.17.020).
• The loan is underwritten as a project. The guidelines say a bank's policy for development and construction projects should set "Requirements for feasibility studies and sensitivity and risk analyses" and minimum "hard equity" from the borrower.

Run the purchase as a project test, not a lot check. Our land feasibility study guide has the checklist.

Where Pillar fits

Pillar's property search shows a parcel's boundary with the ownership, acreage, zoning and land use from its record, and draws floodplain, wetlands, slope and roads on the map. That is a first screen. It is not the code, the survey or the title work.

Quick answers

What are the steps to buying land? Set the use and budget, find a parcel, check zoning and access, check utilities and soils, make an offer with contingencies, order title work and a survey, arrange financing, and close.

What should I know before buying land? Whether your use is allowed, whether the parcel has legal access, how it gets water, sewer or septic and power, and what the title and survey show.

How do land loans work? A lender takes the land as collateral. Federal guidelines tell banks to keep their own loan-to-value limits at or below 65 percent for raw land and 75 percent for land development, with exceptions allowed.

Is it hard to get a loan for land? It depends on the lender, the land and your credit. Fannie Mae does not purchase mortgages on vacant land. Federal guidelines set a 65 percent supervisory loan-to-value limit for banks' raw land loans, with exceptions allowed. They call loan-to-value "only one of several pertinent credit factors," so ask each lender what it requires.

Can you buy land with no money down? Sometimes. USDA says eligible rural buyers can build a primary residence with 100 percent financing, and a seller may accept little or nothing down. Ask which due diligence and closing costs you must pay in cash.