Depending on how much equity you have in your current home...taking a 2nd out to pay for the land might be your best bet as far as interest rates go. Our local banks that deal with farmers and rural land loans generally have the rates set about 1.5% higher (fixed) for land only loans. They also require 20% down and give you a max of 20 yr term. This seems to be somewhat of a standard, at least around our area for this type of loan. When we bought our first peice of property, thats what we did. Also we did not put any insurance on it, since it was land only. Just posted the entire thing very well and that was it. Never had any problems.