Everything you wanted to know about recreational vacant land loans 
9/2/2021
Camping on Rec Land
 

 

Vacant land, home site and recreational property loans have recently become especially popular as families look for ways to get away and enjoy nature.  

 

With current low interest rates, it’s a great time to look at financing a new piece of property. Whether you’re interested in building your dream home on vacant land or owning recreational property, GreenStone helps you finance property that fits your current budget, plus matches your plans for future growth. 
 
Which land loan is the best fit for me? 
As the number of people interested in these loans continue to grow, so does the frequency of this question. To find the best answer, it’s important to understand the characteristics of each loan, beginning with the type of property being financed and your long-term goals. 
 
What’s a recreational land loan? 
Recreational land is often greater than 10 acres used primarily for recreational purposes. A recreational land loan typically requires a 20 percent down payment and offers 30-year amortization terms for affordable payments. This land is usually used for hunting, fishing, hiking or ATV-riding, with no immediate plans for building at the time of purchase. If you do have interest in building a home, pole barn or outbuilding later, GreenStone can provide do-it-yourself or contracted construction loans to fit your needs. 
 
How does a vacant land loan work? 
Similar to recreational land, vacant land is also often property that is greater than 10 acres. What’s the difference? This property is purchased with the intention of building a structure on it. The typical down payment for a vacant land loan is 20 percent. 
 
What defines a home site loan? 
A home site property financed with GreenStone is commonly land that is less than 10 acres and does not have any structures on it. These loans are typically used by customers who plan on building a home or cabin on the land. Financing options vary for each individual and property type. However, 20 percent down is usually required on home site loans up to $125,000. Property with a purchase price greater than $125,000 generally requires a down payment over 20 percent.  
 
Recreational Land FAQs 
 
What are my down payment options? 
Typically, mortgages require a 20 percent loan to value down payment. We have options for borrowers looking to secure their down payment, including: 

  • Providing 20 percent cash down 
  • Other property or forms of collateral to meet some or all of the down payment requirement. 

 
How do I reamoritize my loan? 
Loan reamoritization, referred to as an interest rate loan conversion, can be done quickly without the need to refinance throughout the life of the loan as equity is accumulated. A visit with a local financial services officer can get the process started. 
 
Can I finance vacant land for up to 30 years? 
Yes, GreenStone is one of the few lenders who will write mortgages on land without the stipulation to build within a certain timeframe. Many of our customers use our land mortgages to purchase hunting land or recreational land. 
 
Many people are taking advantage of GreenStone’s flexible financing to purchase property not just for today, but for a place they will keep in their family for generations to come. To learn more about home site loans, recreational land loans, country home mortgage loans and finding the best loan for your needs, visit www.greenstonefcs.com or stop in a GreenStone branch near you
  

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