Land tools
Land Equity Calculator
If you own land — or will own it before construction — a lender may allow some of its value to count toward your contribution. The lender decides whether and how.
Your numbers
Inputs
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Estimated results
- Gross land equity
- $60,000
- Net land equity
- $60,000
- Estimated loan-to-value
- 81.3%
- Potential borrower contribution
- $80,000
Estimate only. Actual costs, rates, taxes, insurance, loan terms, and program requirements will vary.
Questions for your lender
Ask before you count on land equity
- Do you allow land equity to count toward my down payment or borrower contribution?
- Do you use the appraised value or my purchase price, and does how long I have owned the land matter?
- Must the land be free of liens at closing, and can the existing land loan be paid off through the construction loan?
- What loan-to-value limit applies to a single-close construction loan on this property?
- How is the site work I have already paid for treated — as equity, as a cost, or not at all?
- If the appraisal comes in low, what are my options before closing?