3d village creation

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Please can someone give me some advice. I want to try and create a village/town for a game I am attempting to write.

I am looking to create an early 20th century rural english village, so need to create a terrain and on it some houses. Yes eventually i would like to be able to go inside these houses too.

What package and blitz loading method can I use to create a terrain and then place on it houses, trees and bushes.

Thanks in advance.
Chris.