Barndominiums

When Chip and Joanna Gaines renovated a barndominium on Fixer Upper in 2016, they had no idea how they would transform America’s rural landscape. While the term was coined in 1989 by Karl Nilsen, a real estate developer in Connecticut, it wasn’t until HGTV’s golden couple focused their talents on this non-traditional construction type that demand skyrocketed.

In states like Texas and New Mexico where wide-open spaces beckon residents to enjoy practical living, barndominiums have surged in popularity in recent years. These unique homes combine rustic charm with modern convenience, offering a cost-effective, customizable, and versatile alternative to traditional homes.

If you’re curious about what makes a barndominium appealing and whether it’s the right housing option for you, keep reading to learn everything you need to know about them, including financing options and construction costs.

What is a Barndominium?

A barndominium, often referred to as a “barndo,” is a type of residential building that blends the design and structure of a barn with the comfort and amenities of a condominium or traditional home. Barndominiums typically feature large, open-concept floor plans and are often constructed using metal building materials, giving them a rustic yet modern look.

Since barndominiums are typically built using steel frames, the structures are highly durable and resistant to elements like fire, termites, and severe weather. They often boast expansive open layouts, giving owners lots of flexibility for creative interior customizations. For owners looking to combine a living area with room for their hobbies, barndominiums easily accommodate workshops, garages, art studios, storage, or even space for animals.

What’s the Difference Between a Barndominium and a Traditional Home?

While barndominiums and traditional homes both offer comfortable living, the way they are constructed and their aesthetic appeal differ significantly.

Traditional homes are typically framed with wood, whereas barndominiums are predominantly steel-framed, offering increased durability. The steel construction of barndominiums is less susceptible to common issues like wood rot or termite damage, making long-term maintenance more affordable.

Barndominiums fit in perfectly with the rural landscape of Texas and New Mexico. They often offer the perfect blend of rustic charm and farmhouse style, but customizations can make the home more modern or contemporary. For example, the state-of-the-art appliances, sleek light fixtures, accent walls, and even paint colors can bring a more modern aesthetic to the home.

From an interior design perspective, a barndominium is like starting with a blank canvas. The open floor plans of barndominiums offer greater flexibility in terms of layout, with fewer load-bearing walls than traditional homes, making it easier to adapt interiors over time.

Barndominium Financing Options

Now that you’ve fallen in love with barndominiums and can picture yourself living the good country life in one, the next step is figuring out how to finance it. It’s important to know the financing process differs slightly than that for traditional home loans, but there are several options available to get you in your dream barndominium.

• Specialized Loans
  Since the barn style and agricultural purpose of the original structure falls outside many lenders’ norms for home loans, some offer specialized barndominium loans. These loans are built specifically to cater to this type of construction.
• FHA, VA, and USDA Loans
  These government-backed loan programs may be available for barndominiums, depending on whether the applicant and property meet specific criteria, such as being a U.S. veteran, the location, or intended use.
• Traditional Mortgages
  Although less common, some lenders offer traditional mortgage products for barndominiums. These loans typically require a down payment and have a fixed or variable interest rate over a set period of time, such as 15 or 30 years.

Barndominium Lenders

Many lenders are unfamiliar with barndominiums, so finding a financial institution experienced in barndominium projects is crucial to making your dreams come true. It’s important to select a lender early in the process so you have a full understanding of how down payment requirements and closing costs will impact your budget.

A lender like AgTrust can be a valuable partner, helping prospective owners navigate the financing process, ensuring that building or purchasing a barndominium is affordable and seamless.

Expect to make a down payment, which may be higher compared to traditional homes, depending on the loan product. Your interest rate will vary based on factors such as loan type, your personal credit, and the property’s location. You can calculate your estimated monthly payment with our loan calculator.

Understanding Barndominium Costs

Whether you’re looking for a primary residence or a country house to get away to, barndominiums are often more affordable to build than traditional homes. If you’re building, it’s worth investing in high-quality insulation to make your barndominium more energy efficient to reduce your utility costs over the long term.

The costs of building a barndominium can vary widely depending on several factors. Here’s a breakdown of what you can expect.

• Construction Costs
  In Texas and New Mexico, the cost to build a barndominium can range from $80 to $150 per square foot or more, depending on materials, location, and complexity.
• Factors Influencing Cost
  Prefabricated barndominium kits can lower costs, while customizations, material choices, and finishes can increase overall expenses.
• Additional Expenses
  Like any other construction project, obtaining permits and preparing the land for building can add to upfront costs. The quality of finishes you choose, such as flooring and cabinetry, as well as the installation of essential utilities like plumbing and electricity will also add to the price tag.
• Long-Term Costs
  Barndominiums generally require less maintenance than traditional wood-framed homes, which can translate into savings over time. The energy-efficiency of steel-framed structures can also save you on your monthly utility bills. But, be aware of potential tax differences, as barndominiums may be taxed differently than conventional homes, depending on their location and use. You’ll want to do your research to understand how your region taxes this type of property.

Benefits of Choosing a Barndominium

There are several reasons why homeowners, especially in rural Texas and New Mexico, are increasingly flocking to barndominiums. With lower construction and maintenance costs, it’s a great option for homebuyers on a budget or those looking for a second country home.

The structures offer flexibility and adaptability that can evolve with families and accommodate a wide range of hobbies. If you’re only looking for a short-term investment, a well-built barndominium in a desirable location can offer excellent resale value, particularly for buyers looking for versatility.

Barndominiums offer an attractive blend of affordability, durability, and versatility, making them a popular choice for homeowners in Texas, New Mexico, and beyond. Whether you’re drawn to their rustic appeal, open floor plans, or cost-effective construction, it’s worth exploring whether a barndominium is right for you.

If you’re considering a barndominium and need financing assistance, contact AgTrust to discuss how we can help you turn your vision into reality. With the right financial support, your dream barndominium could be closer than you think! Ready to get started? Fill out an application online!