Thinking about buying acreage in Taylor County but not sure how to finance it? You’re not alone. Land loans work differently than home mortgages, and the details can shape your budget, timeline, and next steps. In this guide, you’ll learn the main loan options, typical down payments and terms, what lenders check on rural parcels, and the local factors that matter most in Taylor County. Let’s dive in.

Loan options for Taylor County land

Lot and unimproved land loans

Lot or vacant land loans work for raw parcels without utilities or septic. These loans fit if you plan to hold the land as an investment or build later. Expect higher down payments, higher interest rates, and shorter terms compared to a home mortgage. Community banks, credit unions, specialty land lenders, and some regional banks offer these.

Improved-lot loans

If the parcel already has access and utilities in place, lenders may treat it more favorably. Improved lots can be easier to finance and may offer lower down payments than raw land. When a lot is buildable with utilities and septic approvals, terms can be closer to conventional mortgage standards.

Construction-to-permanent loans

Planning to buy the lot and build a home soon after? A construction-to-perm loan can bundle the lot purchase and construction into one process. You’ll typically need building plans, a builder contract, a budget, and inspections during construction. Once the build is complete, the loan converts to long-term financing.

Farm and agricultural loans

For productive acreage, look to USDA Farm Service Agency programs and Farm Credit System lenders. Eligibility focuses on agricultural use, borrower experience, and farm income plans. Some programs support beginning farmers and may offer lower down payment options if you qualify.

Owner financing and portfolio/private loans

When traditional bank financing is tough, a seller may carry the note. Terms are negotiable and require proper legal documents. Local banks that keep loans in portfolio or private lenders may also offer flexible solutions at a higher cost.

What lenders look for on vacant land

Buildability and zoning

Lenders want clear evidence that your intended use is allowed. They look for zoning confirmation, septic perc test results, well feasibility, and utility access. If you plan to build, a basic site plan can help.

Access and road maintenance

Legal, year-round access is essential. Public road frontage or a recorded easement is expected. Private roads often require a road maintenance agreement to satisfy underwriting.

Environmental constraints

Floodplain, wetlands, shoreland zoning, or conservation easements can limit building or increase costs. Lenders may adjust loan-to-value or decline financing if constraints are significant.

Survey and title

A current survey and a clean title commitment are standard requirements. Any access easements, right-of-way issues, or boundary splits usually must be resolved before closing.

Appraisal and comparable sales

Land appraisals rely on comparable sales and highest and best use. Because comps vary widely, lenders often build in buffers and lower LTVs for valuation risk.

Borrower profile and reserves

Solid credit, manageable debt-to-income, and liquid reserves strengthen your file. Investors and farm operators should be ready with experience, income documentation, and business plans.

Taylor County factors to check first

• Zoning and comprehensive plan. Confirm permitted uses with county zoning to ensure your intended residential or agricultural use is allowed.
• Soil, septic, and well suitability. A perc test and well feasibility letter are often decisive for financing on rural lots.
• Access. Verify legal access by public road or recorded easement and confirm any private road maintenance agreements.
• Floodplain, wetlands, and shoreland rules. Parcels affected by FEMA floodplain or Wisconsin DNR regulations may face added costs or restrictions.
• Timber and conservation programs. Managed forest or conservation easements can impact value and loan terms.
• Permit timelines and costs. Local septic, shoreland, and building permits can affect your construction schedule and the structure of a construction loan.
• Local offices to contact. Taylor County Zoning and Land Information, the Register of Deeds, the local USDA FSA office, and Wisconsin DNR are key resources.

Down payments, rates, and terms

• Raw or unimproved land. Plan on roughly 25 to 50 percent down. Very raw land may require 40 percent or more.
• Improved lots. Many lenders ask for about 15 to 30 percent down.
• Construction-to-perm. The lot portion often requires 10 to 25 percent down, depending on your profile and the lender.
• Agricultural loans. Down payments vary by program. Some FSA and Farm Credit options can be lower for qualified borrowers.

Rates for land loans are typically higher than conventional home mortgages. Terms are often shorter, commonly 5 to 15 years, and may include interest-only periods or a balloon payment. Construction loans are usually 12 to 18 months and convert to long-term financing once the build is complete.

Pick the right lender

• Start locally. Talk with a community bank or credit union that understands Taylor County land values and permitting.
• Add a specialist. If you’re buying farm or timber acreage, include a Farm Credit System lender. For agricultural purchases, also contact the local USDA FSA office to check program eligibility.
• Compare options. Consider including a regional bank or mortgage broker that offers land and construction-to-perm programs.
• Ask the right questions. Clarify down payment requirements, typical LTV, whether a perc test or survey is required, how appraisals are handled, and if a lot loan can convert to a mortgage after you build.

Your step-by-step path

1. Preliminary research

   • Check Taylor County parcel records and confirm zoning use.
   • Verify legal access and identify easements.

2. Financing check

   • Get pre-qualified with one to three lenders spanning a community bank, a Farm Credit or USDA FSA option if agricultural, and a regional bank or broker.
   • Discuss expected down payment, rates, and required site documentation.

3. Site due diligence

   • Order or confirm a recent survey.
   • Obtain a perc test and well feasibility if you plan to build.
   • Review FEMA flood maps, DNR wetland layers, and county GIS for constraints.
   • Confirm access standards and any private road maintenance agreement.

4. Title and legal

   • Order a title commitment and clear any liens or access issues.
   • Verify there are no unresolved boundary or split-lot problems.

5. Appraisal and underwriting

   • Coordinate the appraisal and be prepared for comp variability.
   • If buying as an investor or farmer, prepare a business plan and income documentation.

6. Closing and next steps

   • Confirm clear title and final loan terms.
   • If building, set your construction draw schedule and inspection plan.

Common pitfalls to avoid

• Skipping buildability checks. Without zoning confirmation and a perc test, financing can stall or cost more.
• Overlooking access details. Lack of recorded access or unclear private road agreements can delay closing.
• Underestimating environmental limits. Floodplain, wetlands, or shoreland rules can reduce LTV and increase costs.
• Assuming residential terms. Land loans often have higher rates and shorter terms than home mortgages.
• Rushing the timeline. Surveys, appraisals, and title work take time. FSA and some agricultural programs require longer lead times.

If you plan to build soon

Consider a construction-to-permanent loan that covers the lot and the build. You will need construction plans, a builder contract, a budget, and a realistic schedule. Make sure your septic, well, and utility approvals align with your lender’s draw and inspection process. Early coordination helps your loan convert smoothly to permanent financing after completion.

How a local expert can help

Financing land is part lending, part local due diligence. An experienced, Taylor County–savvy agent can help you confirm zoning, line up perc and well checks, coordinate survey and title, and introduce you to lenders that fit your parcel and goals. If you are weighing a build now versus later, you can also compare lot loans against construction-to-perm options with confidence.

Ready to move from research to action? Reach out to Wanda Johnson for steady guidance, local connections, and a clear plan from offer through closing.

FAQs

Can I get a 30-year loan for raw land in Taylor County?

• Long-term 30-year mortgages are uncommon for raw land. Most lenders offer shorter terms or require conversion after development.

Does USDA finance raw land, or only homes?

• USDA Rural Development programs focus on homes and improved lots. For agricultural land purchases, USDA FSA programs are the relevant path.

Do I need a perc test to finance a rural Taylor County lot?

• It is strongly advisable. Many lenders require a perc test for residential financing or will price the loan more conservatively without one.

How do land loan rates compare to home mortgages?

• Land loan rates are typically higher due to added collateral risk and valuation variability.

Can I finance farmland or timberland like a residential lot?

• Usually not. Productive farms, timberland, and recreational acreage are often financed through agricultural lenders with underwriting focused on income potential.