by
Stacy Wise
| Aug 26, 2024
Recreational Land Loans
Written by Andrea Klinedinst, Executive Administrative Assistant
Do you enjoy hunting, fishing, hiking, or just being out in nature? Do you want to purchase your own land to do just that? Then you may be in the market for a Recreational Land Loan. But what is considered recreational land, and how do you know if a Recreational Land Loan is right for your needs? Our expert for this article, Zack Krulac, VP Commercial/Ag Loan Officer at our Canton Banking Center, has the answer to these questions and more below.
What is recreational land?
Zack Krulac (ZK): In banking, when it comes to financing real estate, it is most common to fall into one of three categories: Agricultural, Commercial, and Residential. Most folks are aware of what each of those are, but in our markets, a fourth category has become extremely desired and can sometimes be difficult to find financing for – Recreational Land.
Recreational Land could be defined as a property that isn’t more than 50% agricultural or tillable ground. It is one that isn’t being purchased for the sole purpose of generating income and renting or leasing, but instead, used personally. It is also one that does not have a dwelling and, therefore, cannot be considered residential. It is a property that a person is looking to buy to hunt and fish, or make trails for riding or hiking, or maybe just have a place to get outdoors and enjoy nature.
We often hear of financial institutions struggling to find a proper way to classify this type of property and, as a result, struggling to find the correct way to finance them.
MNB has created a specific loan program for these “in-between” properties to make sure we are offering as many solutions as possible for our customers and their various needs.
How can you start applying for a Recreational Land Loan with MNB today?
ZK: I suggest you reach out to a commercial/ag loan officer at any of our banking centers. They will be able to set up an appointment with you, email you the documents we will need to get started, or even take an application over the phone if that is easiest.
What else should you know?
ZK: Recreational Land Loans are very similar in underwriting requirements to the various other loans you may be familiar with, but it is always best to discuss specific requests with a loan officer, as we will do all we can to find a solution that works for you and the bank.
MNB offers many types of loans that can help you reach your personal, business, and financial goals, and MNB’s lenders work hard to continue to bring you the best service. If you would like to know more about Recreational Land Loans or would like to apply for one, give us a call today at 877-647-5050 or set up an appointment online.