Traditional mortgages are hard to get for vacant land. If the plot is inexpensive (e.g., $20,000), a personal loan might be the only way to finance it quickly. Better Alternatives FHA Loans: Require as little as 3.5% down.

State and local programs that provide grants or forgivable loans to first-time buyers.

Even if you find a lender that allows it, a personal loan carries a monthly payment. Mortgage lenders look closely at your . Adding a large personal loan right before applying for a mortgage can spike your DTI, potentially causing the bank to reject your mortgage application because you now look "over-leveraged." 3. The Timing Issue

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