Land equity is valuable, but does not work the same as cash. It can potentially be used to secure home purchase financing, but will not lower your actual loan amount like a cash down payment.

Many lenders will allow land — either owned or given as a gift — to be used as collateral instead of a cash down payment when obtaining financing to purchase a new home. Basics of land in lieu ...

If you want to build a house or a commercial property, a land loan can help you secure a location. However, land loans are considered risky investments for lenders because there’s no property to ...

Down payment: Typically larger than for a home purchase. Closing costs: May include survey fees, environmental assessment costs, and other land-specific expenses.

Homebuyers are making bigger down payments, but the average is well below 20%. While the share is considered a standard, it’s not “the law of the land.” ...

Even low down mortgages like an FHA loan can cost you 3.5% plus closing costs, requiring $10,000 or more. So, how can people save up the massive down payments needed to purchase a property?