Post-frame home layouts like pole barn homes have increased in popularity recently for their open-concept floor plans and versatile residential spaces. However, obtaining pole barn home financing requires research and a clear plan for your building project from day one.
For example, while financing for post-frame buildings can be harder to obtain from conventional lenders like banks and mortgage companies, you can still receive coverage for your pole barn home project with the right connections.
Many people don’t know that pole barn home financing can be obtained from a variety of lenders, including government loans and private companies. As long as you have a clear plan for your new home construction, pole barn financing is easier and more obtainable than you might think.
Read on to learn about the five main steps you need to complete to get a loan for your pole barn home. With the right plan, you can obtain pole barn home financing today!
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What is a pole barn home?
Because pole barn homes are still relatively new to the housing market, it’s important to make sure both you and your lender are working under the same definition when discussing your future pole barn home.
A pole barn home removes the need for load-bearing walls by shifting the weight distribution of the roof to four load-bearing poles at each corner of the building. This allows you to create the open-concept home of your dreams without any pillars, posts, or walls getting in the way.
It is also important to note that while metal building construction continues to gain popularity, pole barn homes help cut down the cost of a new home by remaining with traditional home construction supplies. That means instead of having to pay for a steel roof and siding, you can stick with tried and true treated wood and concrete for your pole barn home.
Connect with pole barn home financing lenders
When it comes to choosing the right lender for your pole barn home, you shouldn’t just go with the first option you find. Your options might vary based on where you’ve purchased land to build your pole barn home and how you plan to use your pole barn home once it’s built.
A pole barn home can meet a lot of needs of a wide variety of individuals. With its open floor plan, your pole barn home can double as a mechanical working space, a large home gym, or even a house church. Even the decision to farm the land where you’re building can impact the type of home construction loan you’re eligible for.
With all this in mind, you want to ask potential lenders if they have any prior experience with post-frame home financing and new construction loans. As the American housing market continues to fluctuate, many lenders have decided it’s safer only to support established home financing and refinancing.
Talking directly with lenders can also give you a clear checklist of what information you’ll need to collect to prove you are a valid investment of their money into the future.
Get Connected with a Pole Barn Lender
Narrow down pole barn home project cost details
Speaking of your pole barn home project checklist – the more you have figured out for your home project before choosing a lender, the more likely you are to end up with the best lender for your project. This means you must have already come up with the blueprint, interior customizations, and a building timeline, along with making connections with local contractors who will help you get your pole barn home to completion.
You have a few options when it comes to figuring out the layout of your new pole barn home. You can work directly with an architect to determine what you want to include. You can use online home design software to determine how you want your space to be laid out. Or you can work with a pole barn home kit provider. With the help of a pole barn home kit provider, you can finalize your new home layout and purchase materials to build your home in the same place.
In short, you need to have more than a doodle of your new home to show a potential lender. The more official paperwork you have to share, the better. And a pole barn home kit can even give you a clearer budget for your home construction supplies.
Often, new home prices can be tricky because they don’t include all the interior design costs upfront. For every extra window you choose to add, every high-end countertop or molding you include in a room, and every lighting feature you install, these can add up quickly if you’re not careful.
Once again, this comes back to proving to a potential lender that you’re a good investment. You can show them you have a budget and how you plan to stick to it by researching all the custom details you want to add to your pole barn home before you even build it.
Building timeline and contractors
A pole barn home can be constructed in as little as eight weeks. But to accomplish this goal, you need to know where all of your building supplies are coming from, when they will arrive on your site, and how much money you have to pay for labor to help you get the job done.
This research can be completed even faster with the help of a contractor. You want to make sure you end up with someone who has good connections in the area where you’re building and who is familiar with the unique zoning laws of your new pole barn home’s location. A contractor’s job is to help streamline communication between construction workers, housing material suppliers, and the homeowner. Make sure you have a list of potential contractors who also have experience in post-frame home construction that you can bring to your lender when asking for financing.
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Select a Floor Plan
Picking the right floor plan for your home shouldn’t be a quick decision. The best part of new construction is that you shouldn’t have to worry about repairs or relocation for a long time after it is built. This also means you must consider all potential future scenarios for your residential space before moving in.
Do you want your pole barn home to be your primary living space, or will it be a vacation getaway? Do you plan to host a lot of people at your pole barn home, or will there only be you as the primary homeowner? Do you want to have children in the future?
A pole barn home is usually a single-floor residence with high ceilings, or you can move the living quarters up to a loft and keep the main floor open. The more time you spend considering how you want to use your pole barn home in the future, the more likely you are to end up with a floor plan that fits your family’s needs for years to come. This also means you will have a clear blueprint to show potential lenders, and your pole barn financing will be even more likely to be approved.
What money do you have to spend on your pole barn home?
Once you have a clear budget and an official paper trail to show a potential lender, you also need to make sure you have a clear plan for a down payment on your pole barn home construction. Ideally, you should plan to pay 20% of the overall cost of your pole barn home construction.
If that number sounds impossible to obtain on your own, there are a few ways to work around this issue. First, there are a few low down payment mortgage options, including VA and FHA loans. Some state agricultural development loans also require lower down payments. You could also ask for down payment gifts or loans from family members to get your pole barn home financing started.
Make sure to talk to potential lenders about resources they might have to help you. Your down payment should not be the issue that stands in the way of your pole barn home dreams!
Talk to current pole barn homeowners
It’s also important to remember that many individuals have built pole barn homes and received pole barn financing for home construction projects. With the help of online communities like Barndominium Life, you can connect with current pole barn homeowners and learn from their experiences. Make sure to ask them specific questions, and you can see if they have already worked with a reliable financial lender in your area.
You can work smarter, not harder on your pole barn financing with the knowledge of those who have built before you!
Now that you’ve read through our complete pole barn home financing guide, the only thing left is to start building your pole barn home! Your pole barn home dreams are calling, so start researching the details today.
Ready to learn more about building your dream pole barn? Be sure to check out how to insulate your pole barn, unique pole barn storage ideas to help maximize the space you have, as well as great pole barn front porch ideas that boost curb appeal to a whole new level. Get started designing your own pole barn with the best pole barn software to start turning your dreams into a reality!
Feel free to also look for further building inspiration on our Barndominium Life blog, including 9 great pole barn storage ideas and tips on potential pole barn home builders like Hansen Pole Buildings.
If you would like more guides like this one, check out the rest of BarndominiumLife.com. 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 help you get the best results for your dream home.
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Alicia Drier is a wordsmith with over two decades of writing experience as an English teacher, marketing assistant, podcast cohost, and blogger. As a copywriter, she gets to daily invest in the research and writing she loves – while keeping the time and energy to be the parent she wants to be.