What Is A Barndominium?

In doing so, they educated millions on the term “barndominiums,” inspiring many to invest in and construct convertible barns. But why did that episode strike such a cord? In this article, learn why barndos are popular, the pros and cons of building them, and how to finance barndominium costs.

The Appeal of Barndominium Living

Owners are drawn to barndos because they offer a blank slate for customization and design. They offer ample square footage with open-area buildings that can handle several uses traditional homes cannot.

Barndominium Pros

Barndos take advantage of high ceilings and open floor plans to serve the needs of a common living or work space. Renovators also work to ensure the transformed space meets local building codes with proper standards for: 

• Utilities 
• Plumbing
• Energy efficiency
• Heating
• Cooling 

The versatility of barndos can expand the possibilities of residential living. The metal buildings are durable, and maintenance is fairly straightforward. 

Barndominium Cons

There are, however, some drawbacks. Obtaining a permit for a barndo may be hard in certain places and could entail an expensive home inspection. The “curb appeal” of barndos can be relatively unexciting as well. 

Additionally, barndos are not classified as manufactured homes. Buyers may find financing through conventional loans somewhat tricky, although the growing appeal of barndos may inspire lenders to find new ways to accommodate renovators.

How Much Does it Cost To Build a Barndominium?

The most typical expenses of converting a barn into a living or work space include:

• Acquiring and preparing the land
• Rebuilding the foundation and manufacturing the “shell”
• Building and finishing the interior space
• Installing plumbing, electrical, insulation, and HVAC systems
• Constructing doors, windows, and a new roof
• Refinishing the exterior spaces
• Installing bath and kitchen appliances
• Obtaining required and sometimes expensive renovation permits 

According to U.S. News & World Report, transforming a 2,400-square-foot barn into a living space costs an average of $120,000 to $500,000. Barndominium kits range between $10 and $30 per square foot.

How Long Does It Take To Build A Barndominium?

The timeline for constructing a barndominium varies based on several factors. These include the design's complexity, the structure's size, the level of customization, and the efficiency of the construction crew. Here’s a breakdown of what you can generally expect:

1. Planning and Design Phase (1-3 months)

• Initial Planning: This includes deciding on the layout, design features, and overall vision for the barndominium. Consulting with architects or designers is a part of this phase.
• Blueprints and Permits: Finalizing blueprints and obtaining necessary building permits can take weeks to months, depending on local regulations and the project's complexity.

2. Site Preparation (1-2 months)

• Clearing Land: If the land is not prepared, clearing and leveling the site is the first step.
• Foundation Work: Pouring the foundation or laying a concrete slab typically takes a few weeks, depending on weather conditions and site accessibility.

3. Construction Phase (3-6 months)

• Framing and Shell Construction: Erecting the steel frame or wooden structure and installing the exterior shell, including roofing and siding, usually takes 1-2 months.
• Interior Build-Out: This involves installing insulation, plumbing, electrical systems, and HVAC, which can take another 1-2 months.
• Finishing Touches: Installing drywall, flooring, cabinetry, and other interior finishes can take 1-2 months, depending on the level of customization and detail.

4. Final Inspections and Landscaping (1-2 months)

• Inspections: Local building authorities will need to inspect the structure to ensure it meets all codes and standards. This can take a few weeks.
• Landscaping and Exterior Work: Final touches on the exterior, including driveways, walkways, and landscaping, usually take a few weeks to a month.

Total Time: Approximately 6-12 months

While the average time to build a barndominium is 6 to 12 months, this timeline can vary significantly based on factors such as weather conditions, materials availability, labor, and the complexity of the project. Efficient planning and hiring experienced professionals can help streamline the process and avoid unnecessary delays.

If you're considering building a barndominium, consulting with a contractor specializing in these types of structures can provide a more tailored timeline and help you navigate the specific requirements of your project.

Barndominium Financing Options

Prospective barndo owners have a few ways of financing their renovations. Again, these options may be limited by local building and zoning restrictions. Nevertheless, most renovators have access to some form of financing, whether traditional or alternative.

Conventional Loan

If available in your area, a conventional loan can help finance the renovation of your barndo. Certain traditional lenders may have specialized experience in barndos and are likely to accommodate your rebuilding needs.

The typical process for applying for a conventional barndo loan hinges on very specific, detailed renovation plans. Prospective barndo owners usually need to get the property value appraised and make a down payment. After they receive the construction loan and complete renovations, they convert the loan into a standard mortgage.

• The advantages of conventional loans for barndo dwellings are compelling. Interest rates are usually lower and can be either fixed or adjustable. They’re easily customizable and offer a direct way to increase home equity, with longer terms than other loan types.
• Some drawbacks of conventional loans include strict requirements. A positive credit history, reliable income sources, and a solid debt-to-income ratio are among the typical criteria for loan approval. 

Appraisals for barndos can be challenging as well. Interest-only payments may be difficult, especially if construction runs into delays. Upfront costs may also be prohibitively high.

Construction Loan

A construction loan is short-term financing for building a new home. This option can usually be applied to renovating a barndo.

Like a conventional loan, the application process involves submitting very detailed construction plans and getting pre-approval. The borrower only pays interest during the loan term. When finished, the loan is converted to a traditional mortgage.

• The advantages of a construction loan are its flexibility. Construction lenders are diligent about vetting local builders and structuring loan payments. Along with paying off interest only, borrowers can obtain better terms according to their loan-to-value ratios.
• The cons of a construction loan include the strong possibility of higher interest rates and a complicated approval process. The short-term nature of construction loans can lead to timing challenges. Since 12 to 18 months may not be enough to complete construction, you risk ending up with partially built structures. This can lead to budget overruns. 

Final Thoughts

In conclusion, building a barndominium offers a unique and customizable living experience that many homeowners find appealing.

However, the financial aspect of such a project can be complex. Understanding your financing options ensures a smooth construction process and a successful outcome.

You can explore the best loan options for your barndominium project by consulting with a knowledgeable mortgage lender. They can help you navigate the application process, secure favorable terms, and ultimately bring your dream barndominium to life.

Don’t hesitate to contact a mortgage lender today to discuss how you can finance your barndominium and start building your ideal living space.

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