Synopsis While home loan can be taken even for a property outside the municipal area, however, a land which is in a village or industrial area does not usually qualify for the land loan. Getty Images When it comes to getting loan to buy a property, a land loan and a home loan are treated differently by lenders. If you are someone who is planning on purchasing land to build a property, you should know how a land loan differs from a home loan. Read on to find out the key differences between a land loan and a home loan.