Exploring Recreational Land Loans: A Guide to Financing Your Dream Property
What are recreational land loans? If you’ve ever dreamed of owning a piece of recreational land—whether it’s for hunting, camping, or simply having a peaceful getaway—there’s a way to make that dream a reality through recreational land loans.
These specialized loans allow buyers to finance land purchases that aren’t meant for primary homes but instead for leisure activities.
While many traditional banks offer land loans, credit unions like us at Northwoods Credit Union provide distinct advantages.
What Are Recreational Land Loans?
A recreational land loan is a type of financing specifically designed to help individuals purchase land for personal enjoyment rather than business or residential use.
These properties can include:
- Forested areas perfect for camping or hunting
- Open fields for recreational sports or gatherings
- Waterfront lots for fishing or boating
Unlike residential mortgages, recreational land loans focus solely on the land itself, making them ideal for people who want to enjoy the outdoors or invest in a piece of property for future development.
However, because the land won’t be developed into a primary residence right away, the loan process can differ slightly from a traditional mortgage.
How to Get a Recreational Land Loan
The process for securing a recreational land loan is simpler than many people think, but it does come with its own set of requirements. Here’s a basic overview of what to expect:
- Find the Right Property – Before applying for a loan, you’ll need to identify the land you want to purchase. Consider factors like location, zoning restrictions, and access to utilities.
- Prepare Your Financial Information – Just like with any loan, you’ll need to provide proof of income, credit history, and sometimes a down payment. Recreational land loans often require higher down payments than residential mortgages, typically ranging from 15% to 30%.
- Apply for the Loan* – Once you’ve found your property and gathered your financial information, you can apply for a recreational land loan through a lender. Many turn to credit unions for their competitive rates and personalized service.
- Loan Approval – After submitting your application, the lender will review your creditworthiness and the details of the land purchase. If approved, you’ll work with your lender to finalize the terms and close the loan.
Why Choose a Credit Union for Your Land Loan?
Credit unions are member-focused, which means their primary goal is to serve their members—not shareholders.
This gives them an edge over traditional banks when it comes to offering recreational land loans. Here are a few benefits of working with a credit union:
- Lower Interest Rates – Credit unions typically offer lower rates than traditional banks, helping you save money over the life of your loan.
- Flexible Terms – Credit unions often provide more flexible loan terms, allowing you to customize the loan based on your financial situation and goals.
- Personalized Service – As a member of a credit union, you’re not just a customer; you’re a part-owner. This means you’ll receive personalized attention, making the loan process smoother and more transparent.
- Local Expertise – Northwoods Credit Union has deep ties to the community and understands the local real estate market, making us well-equipped to guide you through your land purchase.
Secure Your Recreational Land Loan Today
If you’re ready to explore the great outdoors and invest in your dream northern Minnesota property a recreational land loan from Northwoods Credit Union might be the perfect solution.
With competitive rates, flexible terms, and a focus on personalized service, Northwoods is here to help you turn your land ownership dreams into reality. We’re proud to serve the Cloquet, Moose Lake, and Floodwood areas all over the northland!
To learn more about how we can help you finance your dream recreational property, visit one of our local branches or contact us now!
*Not all applicants will qualify. Membership eligibility required. NCU is insured by NCUA. NCU is an equal housing opportunity lender.