Barndominium Financing: A Case Study

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Phillip and Emily Bromley hoped to purchase 20 – 40 acres near Birmingham, Alabama.

“We wanted our property to have land near water with some abandoned fields and hardwood timber,” Phillip Bromley explains.

“We’d planned to use the land for recreational hunting, a mini-farm, and a mini-orchard.” Phillip looked for a place where he and Emily could escape their busy lives as nurse anesthetists (CRNAs), get away from the traffic and noise of the city and enjoy the outdoors.

If they could also build a barndominium then that would be icing on the cake.

Trading the city life for the country

“My wife is somewhat a city girl,” Phillip explains. “I didn’t know if she’d enjoy owning property or not.

“If we lived on the land in Sterrett, Ala., we were interested in, we’d have at least a 17-minute further drive to Birmingham area hospitals than we’d had originally.

“When we first looked at the land we eventually bought, and I pulled down into a field, Emily announced, ‘This is it.’””

The 40 acres the Bromleys decided to buy was unique with a couple of sloughs flowing into it and a stream that fed and gave access to a 56 acre lake. Phillip admits they were inexperienced in buying rural property.

After investigating several land and barndominium financing options, a friend suggested to the Bromleys they check out First South Farm Credit.

Farm Credit comes through

“The first person we talked to at First South Farm Credit was very helpful and we felt we could accomplish the financing we needed through it,” Phillip recalls.

“But our initial lender moved, and Daily Thomas, Jr., then became our teacher, mentor and adviser on buying rural property. Once we bought the land, we wanted to begin living on it as soon as possible.”

Daily has written before about questions to ask when buying land. Daily explains, ”If there are already improvements on the land that you wish to purchase, land loans can finance both.

If you wish to improve your land with ponds, barns, cabins, country homes, or in the case of the Bromleys, a barndominium, these are all improvements that we can finance.”

Have your ducks lined up before applying

Daily recommends having all of the plans and costs of improvements ready before applying to finance.

After the Bromley’s learned First South Farm Credit could finance improvements, they built a drive-through barndominium with two-bedroom living quarters upstairs.

Then they could move onto the land and live there. “We planned to use the downstairs part of the barn to hold our farm equipment. In the next 5 years, we’ll build our home on the land, but during that time, we’ll live in our barndominium, which eventually we’ll use as a guesthouse.”

Read the rest of the article here.

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