1. Traditional Land Loan (Bank or Credit Union Financing)
- Loan Type: Raw land or improved land loan
- Down Payment: 20-50% (higher for raw land)
- Interest Rate: 7-10% (higher than home mortgages)
- Loan Term: 5-20 years
- Best For: Buyers with strong credit and a large down payment looking for a long-term investment
2. Owner Financing (Seller Carry-Back Loan)
- Loan Type: Agreement between buyer and seller
- Down Payment: 10-30% (negotiable)
- Interest Rate: 6-10% (flexible terms)
- Loan Term: 5-15 years (often with a balloon payment)
- Best For: Buyers who struggle to qualify for a bank loan or want to avoid traditional lending
3. USDA Farm Service Agency (FSA) Loan
- Loan Type: Agricultural or rural development loan
- Down Payment: As low as 5% (some programs may be 0%)
- Interest Rate: Below-market rates (as low as 3-5%)
- Loan Term: 10-40 years
- Best For: Farmers, ranchers, or those looking to develop rural land with agricultural use
4. Home Construction Loan with Land Financing
- Loan Type: Construction-to-permanent loan
- Down Payment: 10-25%
- Interest Rate: 6-9% (may adjust after construction phase)
- Loan Term: 15-30 years
- Best For: Buyers who plan to build a home on the land and want a bundled financing option
5. Montana Board of Investments or Rural Development Loans
- Loan Type: State-sponsored rural or business development loan
- Down Payment: Varies by program (as low as 10%)
- Interest Rate: Typically lower than commercial bank rates
- Loan Term: 10-30 years
- Best For: Buyers looking for economic development funding, business expansion, or conservation efforts
Each option has its pros and cons depending on your land use, credit score, and down payment ability.
