You have a couple options available if you really want the property.
1. As you mentioned, tap into your 401k and buy the property outright. If it doesnt drain your funds, and you can afford to pay it back and not hurt your retirement budget, its a viable option. Since your retiring, you could always consider it a investment, or diversification of your funds into more tangible assetts instead of stocks. Depending on what your currently earning on that cash, it isnt a crazy idea, unless it drains your 401k. Plus, any interest you pay on it, goes right back to you in the long run. Just make sure you pay it back before you retire, or I think it would be a early withdrawl, and you be taxed to bejesus. But if its a loan on yoru 401, and pay it back before you retire, then there shouldnt be any issues of early withdrawl. Of course, check with your plan if they offer loan option, most of them do.
2. Check with your local COMMUNITY banks. I know in WNY area, Alden Bank or Akron Bank provide "raw" land loans with 20% down I think, or it could be 10%. I was looking into this option a couple years ago, so its worth a try checking with your community bank to see if they offer "raw" land loans. Not all banks do this, and the bank requires it to be in thier area. Plus the APR was high.
3. Land Contract - If your series, and can place a good % down, most owners will consider this if your willing to cover the legal costs, and give them a good APR on holding the note. Of course, I would reccomend a real estate lawyer, and do a serach on property to make sure the owner has no leins or judgements on property. As mentioned, I would never buy land without timber or mineral rights, and I would suggest to also encourage the owner your good fatih, is to stipulate that until the note is paid in full, you do not have the right to timber or mine property without owners permission, and as well, he does not have the right to log or mine property while your contract is valid and your not late on payments. Look at it this way, you could be some douchebag, buy a piece of land on contract, clear cut it, and then default on the loan or vice versa. The purpose is to protect his and your rights, cause nobody in thier right mind would sign a one sided contract.
I purchased property via a land contract, and had no issues with it. Its a viable option, and one worth looking into if options 1 & 2 dont work out. I think option 1 or 3 would be the best solution.
Good luck !
