To mortgage land in the United States, the property must first be titled in your name without liens. Contact a licensed title company to confirm ownership and obtain a title insurance policy. Next, select a lender specializing in commercial or agricultural land loans, as residential mortgage programs often exclude raw land. Submit an application with proof of income, property appraisal, and a survey. The lender will assess the land’s value, check creditworthiness, and underwrite the loan. If approved, sign closing documents, including a promissory note and mortgage deed, transferring a lien to the lender. Repayment typically spans 15-30 years with fixed or adjustable rates.

The process ensures financial institutions mitigate risks by verifying ownership and land usability. According to the Federal Housing Finance Agency (FHFA), land loans require a minimum 20% down payment, reducing default risk. The American Land Title Association (ALTA) reports that 18% of U.S. land transactions face title disputes, emphasizing title insurance’s role. In 2023, average land prices rose 15% nationwide (U.S. Department of Agriculture), justifying thorough appraisals. Lenders also consider local zoning laws; 30% of U.S. counties restrict land use without permits (National Association of Realtors). These steps align with the Consumer Financial Protection Bureau’s findings that structured underwriting cuts default rates by 25%. Combining title verification, lender criteria, and market data ensures sustainable land financing.