Welcome to FAQ

Frequently Asked Questions

1. Is barndominium financing really harder to get than a traditional home?

In many cases, yes. This is because many lenders don’t have extensive experience with barndominiums and metal construction and therefore, consider them a higher-risk loan. Some lenders don’t offer barndominiums financing at all and others have much higher requirements on down payments and credit scores to offset the perceived risk.

Lenders with deep expertise in barndominiums understand they are no different from a risk perspective than traditional homes. We specialize in barndo financing and can help you find the right lender with the right terms.

2. How do I know what kind of loan is right for me?

Different loan types have different requirements and different benefits. If you are a veteran, building in a rural area, have lower income, or a lower credit score, you should consider a VA, FHA, or USDA loan. They may have better terms than a conventional mortgage. A one-close loan is always a good option to consider for new barndo construction.

3. Can I get a one-close USDA, VA or FHA construction loan?

Yes, single-close loans are available for multiple loan types, but it can be more difficult to find lenders that specialize in barndominiums, offer single-close loans, and the specific type of loan you want. We can help. Contact us to find eligible lenders.

4. Can I build a barndominium with a low credit score and/or a small down payment?

Yes, there are multiple types of financing available for households that may have a lower income or credit score. Veterans should explore VA loans. Those building in rural areas should explore USDA loans and other low-to-moderate income or first-time homebuyers can consider FHA loans.

5. Do I need design plans to secure financing?

Yes, lenders need to feel confident that the loan is a good investment and the house will be valued at the appraised value. Comprehensive design plans, including everything from foundation, roof, HVAC, electrical, plumbing, cabinets, doors, and windows demonstrate to lenders that you have a well-thought-out construction plan. Barndominium specialists, including American Barndominiums, have the expertise to provide mortgage-ready design plans as well as barndominium-specific financing options.

Happy Clients with Barndominiums Financing

As a first-time homebuyer, the process of financing can be daunting. However, American Barndominiums made it seamless with their expertise in FHA Loans. Their team walked me through every step, providing detailed construction plans that reassured both me and the lenders. I’m now the proud owner of a beautiful barndominium, thanks to their comprehensive services and support.

Emily Thompson

I opted for a conventional loan for my barndominium project, and I couldn’t be happier with the support from American Barndominiums. Their comprehensive plans and expertise in zoning and appraisal made the financing process smooth. Their dedication to going beyond just financing helped me build my dream home with ease.

Alex Rivera

Living in a rural area, I thought building a barndominium would be complicated, but American Barndominiums proved me wrong. They specialize in USDA Loans, which was perfect for my situation. Their zoning expertise and specialized appraisers made the financing process straightforward, and now I have the perfect home for my family.

Marcus Johnson

American Barndominiums’ claim of full-service support is 100% true. From securing a conventional loan to navigating the construction and appraisal process, their team was there every step of the way. Their detailed plans and zoning knowledge were crucial in getting my project off the ground. I’m deeply grateful for their dedication.

Natalie Kim

As a veteran, I wanted to utilize a VA Loan for my barndominium. American Barndominiums’ team was incredibly knowledgeable about the VA Loan process. They provided detailed construction plans and had specialized appraisers who understood the unique value of barndominiums, ensuring I got the best deal possible. Their full-service support was invaluable.

Jessica Walters

The team at American Barndominiums is phenomenal. Not only did they help me secure a USDA Loan, but their full-service approach covered everything from construction plans to dealing with zoning. Their specialized appraisers and comprehensive support were key to the success of my barndominium project. They truly go beyond financing.

Derek Smith

Tested and tried for over 20 years

With the Right Financing, Your Dream Barndominium Can Become a Reality

Barndominium financing provides significant benefits for new and existing homeowners.

  • Leverage: With a small down payment (or in some cases no down payment), financing can help you afford a larger asset
  • Tax benefits: Deduct your interest payments to save at tax time
  • Equity and diversification: Building equity in a home through financing can diversity your financial portfolio
  • Stability and predictability: Fixed-rate mortgages can provide stable monthly housing costs and hedge against inflation
  • Credit building: On-time mortgage payments can improve your credit score
  • Long-term appreciation:  Financing enables you to make a long-term investment that should appreciate over time, leading to a higher net worth