Answers · Rates, LTV & Loan Structure
What interest rate should I expect on a land loan?
Expect land loan rates to run 1–4 percentage points above a comparable home mortgage, depending on the lender type. Subsidized farm credit sits lowest, banks in the middle, hard money highest. Turnrow prices each loan per asset — above farm credit, below hard money — with a written term sheet in 24–48 hours.
The rate you see quoted depends heavily on who is quoting it. Farm Credit associations and USDA-backed programs lend below market because they are subsidized or guaranteed, but they underwrite slowly and demand full financials. Community banks price a point or two higher. Hard money lenders on land routinely price in double digits with heavy points.
Within any lender's range, your rate is driven by loan-to-value, the asset's marketability, and term length. A 55% LTV loan on irrigated row crop ground in a strong county prices better than 70% on a remote parcel with one access road. Credit matters less on asset-based loans than on consumer mortgages — the land is the underwriting.
Do not compare rates in isolation. A loan that closes in three weeks at a higher rate often nets you more than a subsidized loan that takes four months and dies in committee. Price the whole transaction: rate, points, speed, certainty, and prepayment terms.
The Turnrow angle
Turnrow sets rates per asset rather than off a rate sheet, positioned above subsidized farm credit and below hard money. You get the actual number on a written term sheet within 24–48 hours — no application fee to find out.
See how Turnrow prices land loans →
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