Financing for Barndominiums

Barndominiums or “barndos”, are a relatively new property type which means you may have a hard time finding a lender in the traditional mortgage space that’s willing to give you a loan on this unique property. Loan program guidelines in the traditional space, present hurdles, especially when it comes to determining the homes value. Lenders can’t approve you to borrow more than a home is worth so they require and count on the appraisal to tell them what the homes value is. If there aren’t similar homes nearby, it can be difficult, even impossible to assign a value, which means the lender can’t abide by the program guidelines they are required to follow. 

Alternative financing such as Non-QM, can provide the flexibility needed for unique properties like barndos. 

What is a barndominium?

A barndominium or barndo, is a type of home that combines the features of a barn and a condominium, typically using steel or metal framing with an open-concept floor plan. Originally designed as a functional space for farming or agricultural purposes, barndos have been gaining in popularity as an affordable, customizable home due to it’s quick construction, low maintenance, energy efficiency, versatility and rustic appeal.