Waterfront, lake properties and wooded acreage real estate for sale in WI and MI
Financing Your Land

Since the beginning of time land has been one of the soundest investments one could make. In recent times, banks have recognized vacant land is a particularly strong investment. Consequently, many banks have developed financing programs for vacant land purchases.

Programs vary, but it is possible to finance vacant land for as little as 10% to 20% down. This means that the bank will provide 80% to 90% of the financing. Generally, payments will be amortized over a 15 to 25 year term to keep the payments reasonable. Most banks offer various interest rates depending on the financing program you select. You will normally be required to make a balloon payment in either 1 year, 3 years, or 5 years. At this time you may either pay off the loan or refinance.

You may also opt to use home equity to purchase your vacant land. This may have tremendous tax advantages for you, because in many cases the interest paid on this type of loan is tax deductible. You should always contact a professional accountant or tax advisor if there are any questions about this.

As a land owner, you may find that you are saving money faster than if it were deposited in a bank! You start out with 20% equity in your land. As land prices continue to rise you may realize a greater return on your investment in land than you ever thought possible! For example, the June 17th, 2000 issue of the Milwaukee Journal Sentinel reported that the average price of an acre of land in Wisconsin rose by 24% in 1999, "the largest one-year increase in at least 20 years..."  Between 1999 and 2000 the average price for an acre of land increased by 42%! Very few investments pay such high dividends!  Look at the example below. It shows standard financing of a $35,000 property.

Purchase price $ 35,000
10% initial Investment $   3,500
90% Bank Financing $ 31,500

Monthly payment based on financing $31,500 at 7.5% amortized over 25 years


As a Land Specialist I am prepared to assist you with arranging your financing. Most vacant land purchases are straight forward and can conclude within 2 to 3 weeks. Approvals take as little as 3 business days. It's fast, free, and confidential. Financing made simple.