Verified answer

i would go with a conventional loan only because you don`t know what the market will be like in 2-5 years

The answer is absolutely a "yes". Interest only is the best loan because it allows you to control the asset (the land) with the lowest payment. Most land deals are "Hard Money" or "Private Money" especially on commercial transactions which would be fixed payments rather than a floating rate. These rates are normally high, so you want every option available to you to keep the payments lower in which an interest only loan does to this. Commercial lenders view land as the most risky type of loan because it is a non-producing income asset.

Therefore conventional loans on land are fairly rare outside of a local neigborhood bank which has a portfolio of land loans. If you have plans to improve the land then you could qualify for a a construction loan which has many more advantages than a land loan.

Best to you!