🏦 LAND LOAN TOOL

Texas Land Loan Payment Calculator

Estimate monthly payments, qualifying income, and total loan cost for acreage lots in Greater Houston.

INSTITUTIONAL UNDERWRITING MODEL

Texas Land Loan & True Holding Cost Calculator

PITI + POA Full Holding Cost

1. Lot Purchase Price$150,000

2. Down Payment (20%)$30,000

3. Interest Rate7.50%

5.50% (TVLB / Prime)7.50% (Avg)10.0%+ (Raw Land)

4. Loan Term (Years)

15 & 20 Years are standard for Texas land lenders

5. Unimproved Tax Rate1.67%

~1.58% - 1.82% typical in No-MUD acreage corridors

6. Annual POA Dues$495/yr

Covers roads, reserves, and gate infrastructure

🏆 TRUE MONTHLY HOLDING COST

$1,362 / mo

P&I + Property Tax + POA

Principal & Interest (P&I)

$1,112 / mo

Loan: $120,000

Taxes & Maintenance

+$250 / mo

Tax: $209 | POA: $41

QUALIFYING INCOME30% DTI

$54,497 / yr

$4,541/month gross income

Underwriting Accuracy vs. Pure Debt Models:

Pure P&I modeling claims $47,675/yr qualifying income, understating true carrying costs by +$250/month in property taxes and POA assessments.

Total Interest Paid (15 Yrs)$80,235

Institutional Texas Acreage Lending Standards

Underwriting Guidelines from Texas Farm Credit, Capital Farm Credit & TVLB

1. Down Payment20% to 30% Down

Unlike primary home mortgages (3.5%–5%), unimproved land carries higher collateral risk. 20% is typical for platted subdivisions with roads/electric; 30% for raw unimproved tracts.

2. Loan Amortization10 to 20 Year Terms

Agricultural credit associations structure land loans over 10 to 20 years. 30-year terms are rare unless combined with an immediate construction-to-permanent build contract.

3. DTI Ratios36% to 43% Back-End

Lenders calculate total debt-to-income (DTI) including primary mortgages, car loans, property taxes, and POA dues. Land debt is generally capped at 28%–30% front-end.

4. TVLB Veteran Loans5% Down (Up to $150K)

The Texas Veterans Land Board (TVLB) provides eligible Texas veterans land loans with only 5% down payment on tracts 1.0+ acre up to $150,000 max loan amount.