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Does Fannie Mae Allow Barndominiums?

No matter what kind of home you are trying to build, it can be difficult to get financing. Banks and lenders are often reluctant to give individuals the loans needed to get their dream homes built. This is usually because they want to be sure that the project will be completed and that the loan will be paid off. Many banks will be reluctant to finance a type of home that they aren’t sure about and that they might not be able to verify in their current repertoire of homes. This is why many people ask “Does Fannie Mae allow barndominiums?”

fannie mae allow barndominiums

One of the places people used to be able to get reliable construction loans is with Fannie Mae. This federal lender has always been a good choice for people looking to build their dream home with a stable loan. However, does Fannie Mae allow barndominiums? In this article, we have laid out everything you need to know. 

What is Fannie Mae? 

Fannie Mae is short for the Federal National Mortgage Association and they are a government-sponsored lender for home loans. Created in 1938 by Franklin D. Roosevelt, Fannie Mae was designed to help individuals and families build their homes in the aftermath of The Great Depression. Since then, they have been working with all kinds of people to help them get the financing they need for their homes. 

In the early 2000s, Fannie Mae strengthened their qualifications for getting home loan financing. This was designed to react to the predatory lending going on during this period. Since then, however, getting a loan for new home construction has been getting harder and harder. 

Does Fannie Mae Allow Barndominiums?

Since you are in the market for a barndominium build, you are probably asking, “does Fannie Mae allow barndominiums?” Unfortunately, in 2020, Fannie Mae disallowed barndominiums and shouses as being eligible for loans. They began to describe them as “unique property types,” which made them ineligible for home and construction loans. 

While this is bad news for many home builders and homeowners, it isn’t the end of the world. Knowing that the answer to “does Fannie Mae allow barndominiums” is “no” allows you to explore other options. Fortunately, there are several other places you can get financing for your barndominium. 

Where Can I Get Financing for My Barndominium?

There are a few different places and ways you can get financing for your barndominium. Of course, all these places will have their own sets of requirements and qualifications you need to meet. Knowing this can help you be ready when shopping for a loan for your barndominium build. 

fannie mae allow barndominiums

Before speaking to any of these lender types, you should be sure that you are as prepared as possible. Have a detailed construction plan and a floor plan ready to go and know the answers to any and all questions. This will increase your chances of getting the financing you need so you can get your barndo built. 

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Credit Union 

Credit unions should be your first option when the answer to “does Fannie Mae allow barndominiums?” comes up short. Credit unions are usually family-owned and independent, which means they have a lot of leeway with their loans. They will be much more likely to give you a loan for a unique property. 

Unfortunately, credit unions are getting less and less common every year as bigger banks buy them out. If you are lucky enough to have one in your area, it is a good idea to do all your banking with them. This will increase your chances of getting a loan with them in the present and the future.

Agricultural Banks 

Agricultural banks can be another great resource when the question “does Fannie Mae allow barndominiums?” comes up with a “no.” Agricultural banks give loans to people looking to build in rural areas, and they are very involved with pole buildings. This makes them a great choice for building your barndominium and getting the financing you need. 

One of the stipulations with agricultural banks is that you usually have to do some kind of agricultural work. However, this isn’t always the case, and sometimes you just have to be building a certain type of structure. Check with each individual bank before you start the process. 

Mortgage Brokers

Mortgage brokers are a great way to get the financing you need for your barndominium. They essentially act as middlemen between you and the lenders who might be able to get you financing. This is especially useful when trying to build a unique home like a barndominium. 

One of the best ways to find a mortgage broker is to talk to other barndominium owners in your area. They will have a good idea of who to look for and who will be the best choice for you and your project. They probably wondered, “does Fannie Mae allow barndominiums?” at one point as well and had to look elsewhere, just like you. 

Online Loan Entities 

One of the newer ways to get financing for your barndominium is to look at online loan entities. There are all kinds of online lenders and brokers opening up for business all the time, and they could be a great choice. It opens up many possibilities when you know that the answer to “does Fannie Mae allow barndominiums?” is “no.” 

fannie mae allow barndominiums

Online loan entities will also be much more open to unique types of homes like yours. On top of this, there are also a lot more of them out there, and they can offer you many incentives. Do as much research as possible before signing up with any online lending entity to ensure they are legitimate. 


By understanding the answer to “does Fannie Mae allow barndominiums?” and the alternatives that are available, you can find the best financing for your barndominium. There are so many options available to you, and you must find the right one. Having a good lender on your side will make all the difference. 

If you would like more guides like this one, check out the rest of There, you will find more helpful tips and tricks from the pros. You will also find featured barndominiums, barndominium floor plans, and information on financing and insurance. Knowing as much as you can will help you get the best results for your dream home.