Do you dream of moving to a peaceful, rural setting in the countryside, far away from the hustle and bustle of the city? Perhaps you relish the idea of owning a couple horses, goats, or chickens, or having your own workshop where you can focus on your personal hobbies. If so, then a barndominium could be perfect for you! But first, you’ll need to secure financing. Here’s everything you need to know about home loans for barndominiums.
What Are Barndominiums?
A barndominium (also referred to as a “barndo”) is a type of dwelling in which a person’s living quarters are incorporated into a barn or similar structure used on a farm. Usually, the person’s living area is built above the barn, on the second floor of the building and the area beneath is used to house animals or as a workshop space. While most barndominiums are made from steel, some incorporate other materials such as wood, brick, and stone.
While barndos have been around for quite some time, they have become increasingly popular in recent years due to the higher availability of remote work. Barndos are not only faster and cheaper to build, but are also lower maintenance and more eco-friendly.
Home Loans for Barndominiums
Getting a home loan for a barndominium can be tricky since many lenders are unfamiliar with these types of structures. However, it is far from impossible. You just need to be able to fulfill your lender’s requirements as well as the stipulations set out by your particular loan program. Here are some possible avenues that may be available to you:
- USDA Loans: It may be possible to purchase an existing barndominium with a USDA loan. Keep in mind, you’ll need to meet the income requirements for this loan program and purchase a property in an eligible rural location. Furthermore, the barndo that you buy will need to meet the HUD’s minimum property requirements and pass an appraisal inspection.
- Construction Loans: If you want to build a custom barndominium from scratch, you may be able to finance the operation with a construction loan. These short-term loans can be converted over to permanent mortgages once construction is complete.
- Other Options: It may be possible to purchase a barndominium with other means of financing such as a conventional mortgage. Keep in mind, this is a unique purchase that will need to be assessed on a case-by-case basis. It’s important that you inform your lender of your plans so that they can guide you in the right direction.
Learn More about Home Loans for Barndominiums
Do you have questions about home loans for barndominiums? We can help! Call today to speak to a mortgage expert!
