Can I buy land with a personal loan versus or do I need a mortgage loan?

If you can get a personal loan for enough money, yes. You can use any loan type you like to get the funds for land.

The rules for financing the purchase for land is different than for buying land with a residential structure on it. Although some lenders may balk at using a personal loan to make a land purchase, it is legal to do so. You really can't get a true mortgage to buy land because most land loans are shorter term with either a balloon payment or an adjustable rate that makes keeping the land loan long term unattractive. Every lender is going to ask you what you are going to use the loan proceeds for. Depending on the amount, and if you already own a home, you can likely get by with saying the proceeds are for investment and other miscellaneous projects around the home, or something similar. Personally, I wouldn't mention the land, because then they are likely to ask for details about the taxes (which they would want to include in your qualification). Since you will not incur any tax liability until you actually identify the parcel, contract for and close escrow on the purchase, it really does not need to be in the equation. I would go ahead and get the loan now, so the money is in the bank when you are ready to make the offer. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except VA and we're pending approval in MA and NY. ~ www.ApplyYes.com 480-889-9000.