Best way to finance recreational land | TigerDroppings.com

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BayouNation
New Orleans Saints Fan
Member since Sep 2008
234 posts

Best way to finance recreational land


What is the best way to finance land for recreational use (hunting). No improvements will be made. What are the typical loan rates for this type of land?






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CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
2413 posts

re: Best way to finance recreational land


I've been looking into it, but others will be able to give better opinions. I''m finding that they are much more difficult than a home loan, require 20% down at at minimum and It's tough get fixed rate terms over 7- 10 years.

I'm sure a land bank may offer better options.






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BayouNation
New Orleans Saints Fan
Member since Sep 2008
234 posts

re: Best way to finance recreational land


quote:

I've been looking into it


Do you mind sharing what you find out?

quote:

I'm sure a land bank may offer better options.


What is a land bank?






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67292 posts
 Online 

re: Best way to finance recreational land


Start here

LINK /






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sig3197
LSU Fan
Baton Rouge
Member since Dec 2003
111 posts

re: Best way to finance recreational land


or here.

Land Bank






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CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
2413 posts

re: Best way to finance recreational land


Does anyone know the fundamental reason that it's more difficult to finance land-only over a home mortgage? Do the banks see land as being less "liquid" than a home from a risk perspective?

(Good links on the land banks)






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67292 posts
 Online 

re: Best way to finance recreational land


More likely to default on recreational property than primary residence I would assume





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Bill Parker?
Member since Jan 2013
1326 posts

re: Best way to finance recreational land


20% down if you are strong, more if not. Rates will be higher. Some banks are no longer loaning on timber value, but that probably depends on the client as well.

If you have not located a tract yet, it might be worth looking in an area where recreational tracts (good soil nutrients for increased carrying capacity, water features, etc) have kept their values.

And taking your loan officer hunting or fishing might help.






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