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Mike Tanas

Barndominium loans

Financing for barndos, built or bought.

Buy or build
Purchase and construction options
Appraisal
Depends on comparable sales nearby
Property
Permanent foundation, residential use
Lenders
A limited group, so matching matters

What it is

A barndominium is a home built with a metal or post-frame shell, often with a shop or garage under the same roof. Many lenders will not finance them. The ones that do have specific requirements for the build and the appraisal.

How it works with a broker

The two usual hurdles are finding a lender that accepts the construction type and getting an appraisal with similar properties to compare against. I know which lenders finance barndominiums and what each needs to see.

For a new build, the loan works like any construction loan: funds are released in stages, then the loan converts to a regular mortgage when the home is complete.

Common questions

Can I get a regular 30-year mortgage on a barndo?

Often, yes, when the home is on a permanent foundation, is primarily residential and the appraiser can find comparable sales.

Does the shop space cause a problem?

It can. Lenders look at how much of the building is living area compared with shop or storage. Tell me the layout early and I will place the loan accordingly.

Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.

Find out what you qualify for.

Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.