In many ways, a land loan is similar to a traditional mortgage. However, there are some important differences. Down payment requirements for land loans typically ranges from 20% to 50%. You can get a conventional home mortgage with as little as 3% down. When you apply, the lender will evaluate your credit score and finances as a part of the loan decision. As with a home loan, you'll need to provide extensive documentation of your finances including bank statements and pay stubs. Additionally, "you need to have a detailed building plan to show lenders and assure them that you can complete your building project," says Jeffery Zhou, co-founder and CEO of FigLoans. The amount of time a land loan will also probably be much less than you would have to pay off a mortgage, which is typically 30 years. "Most land loans are shorter in term," says Will Curtis, a certified commercial investment member (CCIM) at Crossed Sabers Commercial Real Estate. "Three to 5 years is not unheard of." Some land loans are structured with balloon payments at the end of the term to finish paying them off.