In addition to the steady increase in average interest rates, very few loans in the first quarter were made at an interest rate of less than 4 percent. In 2015, more than 40 percent of farm loans used to finance non-real estate purchases were originated with an interest rate of less than 4 percent (Chart 3). At that time, only about 10 percent “Land loans” is a broad term and there are several types of land loans to consider. They’re all used to purchase land but are offered by different providers like local banks, the SBA, credit unions, and more. These different types of land loans are used for a variety of purposes including commercial, recreational and agricultural uses. How to Secure Favorable Land Loan Rates. Finding quality land loan rates to purchase land is the first step to building a custom house designed just for you. This can lead to many questions, including what are the current land loan rates and what is involved in this process, as well as many others.