I've resisted home ownership (reason: my odds of remaining in this city are small), but I've given some thought to buying some land, either in a location where I might one day build a vacation home, or just some raw land to sit on for 10-15 years.

I'm reasonably familiar with mortgage financing for residences, but not aware of the rules / procedures for borrowing money secured by land.

What's the typical down payment? Who do you get the loan from? Are rates comparable to home mortgages, or different? Does a land-based loan not have the mortage interest deduction a residence does?

Thanks in advance.

I don't know anything about it, but I predict this: there will be several voices saying you should not get any kind of financial advice on an internet forum, and you should talk to a financial/investment expert, etc. For the most part it is true, but there is NOTHING wrong with asking here. You will also receive some good advice from nice fellow members.

OT: the real estate values are sky-rocketing in Eastern Europe, especially in the new EU members, I should have bought some land or some apartments a few years ago, I would be rich now. My wife still has an apartment there that quadrupled its value in 8 years since she bough it. We rent it now.

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I don't know anything about it, but I predict this: there will be several voices saying you should not get any kind of financial advice on an internet forum, and you should talk to a financial/investment expert, etc. For the most part it is true, but there is NOTHING wrong with asking here. You will also receive some good advice from nice fellow members.

OT: the real estate values are sky-rocketing in Eastern Europe, especially in the new EU members, I should have bought some land or some apartments a few years ago, I would be rich now. My wife still has an apartment there that quadrupled its value in 8 years since she bough it. We rent it now.

Where in Eastern Europe are you from? I've been meaning to ask and keep forgetting.

Land ownership can be tricky depending on where it is.

You will be paying property taxes on the full appraised value. You may need someone to keep it up (mowing, fenceline, etc) as well.

I bought land using an equity loan but was told it would otherwise be like taking out a mortgage and interest would be similar, though a bit higher.

That said buying investment land can be a excellent idea if you are careful about where you buy. The two acres I bought in the Caribbean in 1998 have quadrupled in value and are still skyrocketing.

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Ombligo, the Caribbean is exactly what I was thinking.

Vieques off Puerto Rico, to be exact. It's a very special place to me, and I could envision going there again and again.

Banks and mortgage lenders are reluctant to loan on raw land unless you plan to build in a reason length of time, usually two years at the longest. The best way to buy raw land is using a land contract with the seller. This is indeed the way much rural property is handled since banks aren't into rural property and seller are often looking for monthly income rather than cash. When you pick an area, look in local papers and talk to local people. You may be able to locate a seller looking for you, too.