#1 Barndominium Problem That No One Talks About

Barndominiums pros usually outweigh the cons. However, they do have an Achilles heel, financing. If you plan on building a barndominium one of the most common challenges is getting a loan. Finding banks and credit unions that will finance a barndominium can be difficult. If you are building a DIY barndominium, that may limit your options of banks and credit unions even more.

One thing that may not be on your mind, because no one talks about it is, REFINANCING. Are there any issues that you may run into? Will you be stuck with that interest rate? What to look out for? Find out how you can avoid issues down the road when you want to refinance your barndominium!

FINANCING YOUR DREAM HOME, SO THAT YOU CAN LIVE YOUR DREAM LIFE

Local mortgage company based out of Chelsea, MI

Jon Mykala - Senior Mortgage Banker NMLS# 728191
Spencer Mykala - Associate Mortgage Banker NMLS# 1967832
Kaitlyn Weaver - Associate Mortgage Banker NMLS# 2302683

Equal Housing Lender | Member FDIC
All loans subject to credit approval

[barndobankers]

Do you want information on how to start your barndominium build? - Go to www.projectbarndo.com/guides

[andyk]

The reason Barna minium’s got started in the first place was so that you could build it out of your pocket as you go no need for Financing in the first place

[uweober]

Just purchased a huge barndominium with 4500 square feet of living space, had no issues getting financed, and contrary to others on this thread very best insulated house I ever owned, the end of October, and still did not need to heat anything! Wish I would have done this many years ago.

[getinthespace]

#1 Advantage... Because the cost is so much lower I'm paying cash for my build.
Debt free and never looking back.

[homestead_diy]

When we bought ours it was a new build on 10 acres. 2 Story Metal building. But I never mentioned the term Barndomimium. The bank never asked. Same bank I had used on a previous house. Never really thought about the refinance deal. But we closed in Jan 2021. Rates were still great at that point.

[smaggums]

I am in the market for a barndo and John was extremely helpfu, l explaining my options for refinancing in a clear concise manner. When the time comes to refinance I will definitely be calling John back!

Thanks for the call!

[WaitWhatsMyName]

I paid cash for my land and shop/apartment. Debt is evil

[ralo]

Good stuff John! 👊🏼💯🇺🇸
Thanks for the tips my friend!

[bmlotus]

Even bigger problem is.... Gov getting out of mortgage backed money.

[areece]

Why would a bank pay for the closing cost? Would they agree to that in the initial contract and if so, what are they getting out of it?

[seanbrock]

I plan on building in cash after my current house sells

[terryneal]

I remember mortgage rates mid to upper teens, rates won't ever be 2 or 3 ever again IMO

[ze_german]

Is it more difficult to finance a Barningham, will it be considered commercial building not residential? I’m worried that I can’t sell it when the time comes.

[parksal]

Is it possible to do a VA one time close to build a barndo as well as purchase the lot?

[aaliyah]

I would love to talk more about the financing . I will be doing something in the very near future. Do you recommend a company to purchase from or build with?

[jeffstrains]

Random question what is the percentage of people who build these that do not finance? Seeing a ton of them on acreage I would assume a lit of build someone moves a few acres and just pays. Of course that keeps banks slower to come around to them

[nofurtherwest]

Are Barndominium's harder to finance and appraise? Kinda like pre-fab homes?
are they harder to resell? Are the viewed differently than regular stick frame houses?

[zxtrev]

Refied mine for 2.25% 3 years ago...so glad I did!

[REEFBLUENOTCH]

If there's a short answer, sure...explain the scenario where the BANK pays the closing costs. TIA

[bridaw]

Looks like a pain in the butt to heat, cool, or be as energy wise as some other home builds.