Buying recreational land

[valley_man0505]

I bought a house a few years back, and I used these forums to educate myself on the home-buying process while I was in the process.  Now, I am gearing up to purchase some hunting land in the next 1-2 years.  However, I have no idea where to even start educating myself on this process...or where to even go for a loan.  I am anticipating that I would end up needing around $150,000 - $200,000 (hunting land is expensive in Wisconsin).

Does anything know how this process works?  What are typical downpayment requirements?  What kind of interest rates are expected?  Are loan terms 30 years like they are with homes?  Do "normal" banks even deal with rec land loans?

 Like I said, I am a at least 1-2 years off from starting a serious search for land, but I want to educate myself ASAP so I can begin preparing and setting goals for myself so I am completely prepared when that time comes.

[GregB]

You might do a search on the Internet to look for land advertised for sale and see if there are any terms quoted. You could also talk to a real estate agent in that area who has experience selling that type of properties.

Based upon my experience in more rural areas, I would guess that there is no conventional financing available. Banks probably only loan on the land if you have lots of assets and give them an all inclusive guarantee, which includes other assets. I'm guessing that the sellers are probably financing the sale themselves. It will really vary according to how easily properties can be sold and if a bank wants them as collateral.

All the ones in which I have been involved were all cash or seller financing. One purchased by a group of friends was done by the one with the strongest credit getting a personal loan and then the rest of us paid him back.