With the high costs of home construction, historically low housing inventory and active marketing listings, and fewer and fewer builders to call, it may be time to consider new options.
The Rise of Barndominiums
Rural areas, especially, are seeing increased buyer interest in barndominums— barn-style buildings typically made from metal, steel, or wood that are used for residential purposes.
Barndominums have recently become a popular alternative due to their numerous benefits. They tend to offer better energy efficiency and lower maintenance than traditional homes, and can last 100 years. They also offer a unique esthetic.
Barndominium Values
Buyers looking to maximize their investment appreciate the lower cost and higher value of a barndominium. The home looks and feels just like a traditional home, but tends to cost much less, allowing buyers to afford additional square footage, higher end design choices, and a quicker construction timeline. In fact, one of the only challenges buyers face when choosing a barndominium is securing a loan.
Loans to Finance Barndominiums
Most financial institutions will not provide mortgage loans for barndominiums, largely due to a lack of comparable sales during the appraisal process. Western State Bank, however, has created an internal lending program to simplify the process and ensure hopeful barndominium buyers have the opportunity to secure funding as long as all other qualifying factors are met.
Through its barndominium loan program, qualifying buyers may secure an in-house loan, which will also cover the costs of construction. While traditional, fixed-rate home loans like Freddie Mac will not be an option, Western State Bank offers customized lending solutions including variable and fixed rate loans, with various term lengths and a personal experience with local lenders.
To learn more about barndominium loans, and to begin the process of preapproval, contact your local Western State Bank mortgage loan officer in Garden City, Dodge City, Scott City, Leoti, Colby, St. Francis or Goodland today. View contact information, hours and locations on our website.
Western State Bank is an equal housing lender. Member FDIC.
FAQs
Barndominums have recently become a popular alternative due to their numerous benefits. They tend to offer better energy efficiency and lower maintenance than traditional homes, and can last 100 years. They also offer a unique esthetic.
What are the advantages of a barndominium? ›
Barndominium kits are prefabricated, which means less on-site labor is required. This leads to reduced labor costs, faster construction times, and lower construction costs. Lower costs, combined with the efficiency of the building process, make barndominiums an attractive option for budget-conscious homebuyers.
Why are barndominiums better than houses? ›
Barndominiums have the strength and durability that comes with being made from metal, making them just as safe or even more secure than a traditional home. The structural integrity of a barndominium also makes them last longer with less maintenance.
What's the downside to a barndominium? ›
Barndominiums May Lack Adequate Sound Insulation
A drawback worth mentioning about barndominiums is their potential for loudness. The primary material used in their construction is typically a thinner metal, which doesn't provide an effective sound barrier against outside noises.
What makes a barndominium unique? ›
Since they are made of steel, barndominiums don't require the same repairs and maintenance as traditional wood-framed homes. If they are properly maintained, their steel structures are also less susceptible to common home issues including standard deterioration, rot, and termites.
What do I wish I knew before building a barndominium? ›
Here are the most important things to know about building a barndominium.
- Obtain a permit for your project. Photo by Bridger Steel, Inc. ...
- Test the paint. Photo by Justin Doyle Homes. ...
- Prepare for surprise costs. ...
- Plan for electrical work. ...
- Choose your windows and doors wisely. ...
- Add insulation—it's important.
Insurance can be complicated for barndominium homes. According to Barndominium.org, not all insurers cover barndos, especially if they're mixed-use instead of residential only, and those that do might have barndo-specific policies.
Are barndominiums good in hot weather? ›
Barndominiums can indeed be a good option for hot weather, provided they are designed with the climate in mind. Proper insulation, ventilation, and the use of reflective materials are key factors in ensuring these homes remain cool and comfortable even during the hottest months.
Are barndominiums good in cold weather? ›
Open Layout: Barndominiums are known for their open and spacious layouts. This design can be beneficial in cold weather because it allows for efficient distribution of heat. With proper insulation and heating systems in place, you can maintain a comfortable temperature throughout the entire space.
Do barndominiums hold their value? ›
Barndominiums normally retain their resale value and may even increase in value gradually, although more slowly than a standard home. However, these homes are still rare in some parts of the country, and it may be challenging to get an accurate appraisal in an area where there are few.
List of the Cons of a Barndominium
- Barndominiums are not immune to corrosion. ...
- There is still a cost element to consider with barndominiums. ...
- Some cities may not allow you to build a barndominium. ...
- Most barndominiums are single-story homes. ...
- You don't receive the same perks as you would with the typical condo community.
Longevity: Although they may not last as long as traditional homes, a well-maintained barndominium can provide comfortable living for around 50 years. 5. Durability: Barndominiums are built to withstand the elements, ensuring they remain sturdy and reliable over the years.
Why can't you finance a barndominium? ›
Appraisal and Valuation Issues
One of the most significant hurdles in securing financing for a barndominium is the challenge of obtaining an accurate appraisal. Banks require appraisals to determine the property's value, which in turn, informs their lending decisions.
What is the most expensive part of a barndominium? ›
Steel framing, popular in barndominium construction for its durability and resistance to pests, can be more expensive than traditional wood framing. Framing costs can range from $20 to $50 per square foot, making it one of the most significant portions of the construction budget.
Are barndominiums worth the money? ›
Barndominiums can make fantastic homes for a fraction of the cost of traditional homes. This makes them an especially great option for those looking to purchase: A large home for less.
Are barndominiums safe in storms? ›
Constructed with metal, a barndo offers superior protection from severe weather. The steel structure of a steel barndominium has a higher wind resistance than a conventional wood frame home. While the metal integrity of your home can endure a tornado, the windows and doors may not.
What is the lifespan of a barndominium? ›
Longevity: Although they may not last as long as traditional homes, a well-maintained barndominium can provide comfortable living for around 50 years. 5. Durability: Barndominiums are built to withstand the elements, ensuring they remain sturdy and reliable over the years.
Are barndominiums hard to heat and cool? ›
Barndominiums, living spaces converted from metal buildings, can present cooling challenges compared to conventional homes due to their distinct construction and design. Unlike traditional homes made from insulating materials, barndominiums often feature thin metal walls that lack the same insulation capabilities.
