Just want it as an investment
I'll try a few commercial banks next. Someone has to have money to loan for this purpose, right?
Probably not.
First, you shouldn't take out a loan for an "investment" that isn't producing an actual cash flow sufficient to cover the loan. Something like a rental property, or even farmland where you can show the bank you expect to harvest and market $XX every year. Even then it's risky, but a legitimate investment.
Taking a loan to pay for something that doesn't pay you back isn't wise. We do it with residential mortgages because it's either that or pay rent, so it's a trade-off.
Let's say the property is worth $100,000 today. 7% interest rate on the note. You'll pay $188,785 over the next 20 years to own it. Annual payments will by $9,439.
(I'm just assuming $100,000 to make all the math easier)
Take that $9,439. Let's round that down to $9,000 assuming you'll need to buy a load of logs each year for your firewood since you don't own the woodlot.
Let's put that $9,000 in fairly safe investment portfolio that's appreciates, on average, 5% per year. Back in the early 2000s we used to assume 10% for young folks, so even now 5% should be very doable. 20 years of investing $9,000 @ 5% = $297,593 in easily sold assets.
Unless the land is in area where development pressure isn't currently but will be soon, I would think it rising in value by 3 times over the next 20 years is a darn poor assumption.
Second, banks tend not like land as collateral for itself.
When I bought my house there had to be some sharp pencils on the appraisal some put more value in the land then the house. But the bank won't lend if the land made up too high of a proportion of the loan.
It's always easier to sell a residence then raw land even in a bad market like today. Again, folks need a place to live, they don't need woodlands.
If you don't have the cash to buy the land, but that's your goal, I'd say start putting the money aside in investments like "Index mutual funds." To use for what the next step is you don't want them as retirement 401(k) or IRAs.
Because in 10 years you take your portfolio statement to the bank and say, "Ok, I want to buy this land for $120,000."
"We don't lend on land, do you have any collateral for a personal loan?"
"Why yes I do this $115,000 in mutual funds."
"Hmmm, a loan will be $950 a month, how do we know you're good for that?"
"Because for the last 10 years I've been putting $750 into the mutual funds every single month."
The bankers will probably be your best buddies by about this point in the conversation.
