Nationwide Barndominium Financing

A Barndominium is a great way to construct a home to match your lifestyle.

Customizable space

• Weight-bearing posts are located on the exterior, providing an open concept, customizable indoor living space, and the ability to renovate or add square footage in the future.

Metal construction

• Barndominiums are constructed with low-maintenance and energy-efficient exterior materials with higher wind resistance than traditional stick-built homes.

Practical style

• Barndominiums often combine a living and work space, flowing from living area to workshop without exposure to weather.

Barndominiums can look different from a traditional home, but the biggest difference is often in how the home is designed and built. Barndominiums may use post-frame, steel-frame, or post-and-beam construction and can combine traditional living space with large garages, workshops, or other non-living areas.

Construction and appraisal

When building a barndominium, your construction plans should clearly show how the property will be used, including the finished living space and any shop or garage areas. An appraisal considers the expected value of the completed property, so detailed plans and specifications are important.

Land and financing

Whether you're purchasing land or already own it, your property is an important part of the overall project. Depending on your situation, existing land equity may also be used toward your down payment and closing costs.

Building and financing

Barndominium construction is typically financed as the project progresses, with funds provided through construction draws as work is completed. Once construction is finished, your loan can transition to permanent financing, depending on your loan structure.

Building a barndominium is different, but you don't have to figure out the financing on your own. Our team understands the unique considerations that come with barndominium construction and can help you plan for the entire project.

Because barndominiums are specialized buildings, financing eligibility differs from a traditional mortgage loan.

Eligibility guidelines

• At least 15% of the property value (land + build cost) in the form of cash, land equity or equity in your current home to cover down payment and closing costs
• All loans subject to credit approval. Rates, terms and conditions subject to change

It's preferred to have the following land and build information in hand before the initial conversation with our lending officer.

Land

• The date you acquired the land
• The amount you paid for the land, if any
• Your estimated market value of the land
• Your current loan balance, if any
• The number of acres

Build

• Square feet of finished living area, by level (main floor, 2nd floor, basement)
• Square feet of unfinished area (garage/shop)
• Square feet of covered porch and/or portico

Typically, borrowers use:

• Cash
• Equity in the property upon which you plan to build your new home
• Equity in your current home

First Federal Bank offers these unique permissions to borrowers:

• Borrower can serve as the General Contractor, except in the state of Texas.
  • The General Contractor manages the entire build process and is responsible for all aspects of the build, including adherence to all laws and regulations
• During the build process, borrower may live on-site in an RV, camper, or other dwelling, provided all local laws and regulations are met.
• All work must be performed by professionals who do the work for a living, except for finish work.
  • Finish work generally means any work taking place after placing interior walls, like painting, laying floor tile, installing trim work or hanging cabinets and fixtures.