Yes, you can buy land as a first-time home buyer, but not with a traditional mortgage. Standard home loans only apply when a residence already exists.

Check Your Land Purchase Eligibility in Florida

In this guide, we’ll show you exactly how to make it work—what to avoid, which loans to use, and how to turn a piece of land into your first home without getting stuck in the common first-time buyer traps.

Can a First-Time Home Buyer Buy Land?

Yes, but how you finance it depends on your goals. If you’re buying land to hold or develop later, you’ll need a specialized land or lot loan, which comes with higher down payments and shorter terms.

But if your plan is to buy land and build right away, first-time buyers can unlock powerful options through FHA One-Time Close or USDA Single-Close Construction Loans.

These government-backed programs let you buy the land and build your home with one low-down-payment loan, often just 3.5% with FHA or 0% with USDA.

In short: whether you’re buying land now or building immediately, there’s a path that works—you just have to choose the right loan for your timeline.

Does Land-Only Still Count as a “First-Time Homebuyer”?

Not quite. Vacant land alone doesn’t count as homeownership, so it won’t qualify you for first-time homebuyer perks like down payment assistance, tax credits, or Mortgage Credit Certificates (MCCs).

Those benefits only apply when you’re purchasing or financing a primary residence—not just the land underneath it.

The good news? Buying land now doesn’t disqualify you later.

When you eventually build and occupy your home, you’ll still be considered a first-time buyer in the eyes of most programs, since you’ve never owned a completed primary residence before.

There’s a small gray area during construction—programs like MCCs usually kick in only after the home is finished and you’ve moved in.

So while land ownership doesn’t make you a homeowner, it also doesn’t take away your shot at first-time buyer benefits once your dream home stands on it.

Your Financing Options

When it comes to buying land as a first-time buyer, your loan type depends on your plans and timeline.

FHA and USDA Construction-to-Permanent Loans (Best for Building Now)

If you’re ready to build right away, these government-backed programs are the easiest way to buy land and build with one affordable loan.

• FHA One-Time Close: Combine the land purchase and home construction into one loan with as little as 3.5% down. Once the home is built, it automatically converts to a standard FHA mortgage.

• USDA Single-Close Construction: For eligible rural areas, you can finance land and construction together with no down payment if you meet income and credit limits. The finished home must be your primary residence

Both programs save you from juggling separate land and construction loans—and keep you eligible for first-time buyer perks like low rates and flexible credit.

Land Loans (Lot Loans)

If you want to buy land now and build later, a land loan may be your best bet.

• Expect higher down payments and shorter terms, but it gives you flexibility to hold the property until you’re ready to build.

• Look for lenders like community banks, credit unions, Farm Credit institutions, or specialized land lenders.

• Some sellers may offer owner financing, which can make it easier to buy without traditional bank approval.

In short, if you’re building now, go with an FHA or USDA single-close loan. If you’re buying land to hold, explore land loans or owner financing until you’re ready to start construction.

Down Payment, Credit, and Terms — Plus a Few Smart Hacks

If you’re buying raw land, traditional land loans usually require larger down payments—often 20–50%—because there’s no home to secure the loan.

Improved lots (with road access or utilities) can sometimes go lower. These loans also come with shorter terms, higher rates, and sometimes a balloon payment at the end.

But here’s where smart buyers find a shortcut:

• 🏗️ Build instead of just buy. Using an FHA One-Time Close or USDA Single-Close Construction Loan lets you roll the land, build, and mortgage into one package with as little as 3.5% down (FHA) or 0% down (USDA).

• 💰 Layer first-time buyer assistance. Some state and local programs allow you to pair down payment assistance (DPA) or grant funds with an FHA construction loan once the property qualifies as a primary residence under construction.

• 🤝 Boost approval odds. If your credit or cash is thin, consider adding a co-borrower or exploring owner financing for the land first—then refinance into a government-backed loan when you’re ready to build.

In short: land loans demand cash, but construction-to-permanent programs and creative DPA stacking can open the door to homeownership much sooner than saving up half the purchase price.

Two Smart Paths — Choose Your Lane

When it comes to buying land as a first-time homebuyer, your best route depends on your timeline and how ready you are to build.

Here are the two most common paths that actually work in the real world:

Path 1: Buy Land Now, Build Later

Pros: Locks in your dream location early and gives you time to design, plan, and save.
Cons: Comes with higher down payments, higher rates, and ongoing holding costs like taxes, insurance, and maintenance.
Best for: Long-term planners who want flexibility, custom builds, or are waiting for the right financial moment to start construction.

Path 2: One-Time Close (Land + Build Now)

Pros: One loan, one closing, and potentially a low or zero down payment through FHA or USDA construction programs. You can lock your rate and roll land, materials, and labor into a single mortgage.
Cons: You’ll need to have your house plans, budget, and builder ready before applying.
Best for: Buyers ready to move forward immediately who want to take advantage of first-time homebuyer programs without juggling multiple loans.

How to get started (step-by-step)

1. Decide path: buy-now/build-later vs. single-close build-now.

2. Price the land + sitework: utilities, driveway, well/septic, permits.

3. Pick lender type: community bank/credit union/Farm Credit; ask about land loans, construction-to-perm, and owner financing.

4. Assemble your build file (if building): plans, specs, GC contract, timeline, budget + contingency.

5. Down-payment plan: target 20–35%+ for land; confirm reserves for sitework overruns.

6. Make offer with right contingencies: survey, perc, zoning, access/utility feasibility.

7. Lock insurance + holding plan: taxes, mowing, equipment storage.

FAQs: What First-Time Buyers Ask Most

Buying land as a first-time buyer comes with lots of “what ifs.” Here are quick, straight answers to the questions people ask most before they take the leap.

Can a first-time home buyer buy land only?

Yes—but you’ll need a land or lot loan, since standard mortgages don’t cover vacant land.

Does buying land disqualify me as a first-time buyer later?

No. You’ll still qualify as a first-time buyer when you purchase or build your primary residence later.

Can I use FHA to buy land?

Only with an FHA One-Time Close construction loan that includes immediate plans to build—not for land-only purchases.

Can I use USDA to buy land?

Yes, through a USDA Single-Close Construction Loan if the property is in an eligible rural area and you meet income requirements.

How much down for land?

Typical land loans require 20–50% down, but improved lots with roads or utilities may qualify for less.

Is owner financing realistic?

Sometimes—especially in rural areas. It’s a flexible option if you can’t qualify for traditional land financing.

Are there timelines to build?

Usually not by law, but construction and agricultural loans often set build timelines as part of their loan terms.

The Bottom Line 

First-time buyers can buy land—it just takes the right strategy.

If you’re planning to build soon, FHA and USDA one-time close construction loans let you roll the land, build, and mortgage into one low-down-payment package.

If you’re buying land to hold, specialized land loans or owner financing can help you secure your spot now and build later.

Either way, the key is to plan your timeline, line up the right lender, and understand that land ownership is just the first step toward homeownership.

With the right approach, your “empty lot” can become the foundation of your first home—and your future.

Check Your Land Purchase Eligibility in Florida