1-877- 292-7350 jhurst@hurstlending.com

Bardominium Loans

Financing for your construction project.

Barndominium Loans

Save up to 30% over building a traditional home.

A barndominium, also known as a “barndo,” is a single-family residence that has the appearance and feel of a barn on the outside but all the amenities of a home on the inside. Barndominiums typically have open floor plans that allow for extensive customization. They are primarily made of metal with wood, stone, or brick accents. Barndominiums have grown in popularity in recent years, particularly in more rural areas. The most significant benefit of constructing a bardominium is the cost, which is typically 20-30% less than that of a traditional stick-built home.

Barndominium Loan Solutions

Many lenders do not offer barndominium financing, but we at Hurst Lending do! We have multiple loan otions avalable, including low downpayment and 100% financing.

Construction Loans

Barndominiums can now get Single Close Construction-Perm and Two-Time Close Construction only loans!

Low Downpayment Options

We do not require the typical 20% down payment required by most lenders and veterans can get 100% financing!

Finance Options

VA construction mortgages can finance 100%, FHA 96.5%, and conventional 95% of your project.

Details on Barndominium Financing

Can You Finance Barndominium Construction?

Barndos are distinctive, which is what people like about them, but this can make traditional construction lenders wary of lending on them. For the few lenders who do, the majority will require a minimum of 20% down payment, making bardominium construction difficult for many borrowers. Borrowers will be required to qualify for the loan in addition to the down payment, just as they would for a home purchase. Lenders will look at your earnings, assets, liabilities, and credit score. They will use this information to determine whether you can “afford” the mortgage payment and make the loan. Meeting the appraised value is the most significant challenge, and the reason most lenders will not offer a bardominium construction product.

Why is the Appriased Value Important?

Before a lender will provide financing for a home construction project, the appraised value of the property must be determined. The lender’s loan amount will be determined by the appraised value. The appraised value is determined by examining recent sales prices of comparable properties in the area. The issue with bardominiums and other unusual construction types is that comparable properties are scarce. In other words, while traditional stick-built single-family homes are relatively easy to find in the area, comparable bardominiums are generally much more difficult to find. Positive news! Hurst Lending finances barndo building.

Who Can Build a Bardominium?

Because of the growing interest in this style of home, many traditional builders have added bardominium construction to their portfolio of offerings. There are even builders who specialize in bardonimium homes. Make sure you do your homework regardless of who you hire to build your home. For the majority of us, our home is the most expensive item we will ever buy. You want to ensure that the builder will complete your project on time, within the agreed-upon budget, and with the quality and craftsmanship that you expect. Check the builder’s references from previous clients, view other homes the builder has completed, and speak with the homeowners about their experience with the builder. Because “self-build” construction projects are not permitted by lenders, you will need to hire a general contractor.

5 Stars 300x52 1

I’ve worked with Jay Hurst on several loans.  Jay is extremely knowledgeable and helpful, and was able to advise me on the options for my recent purchase. Great guy to have on your side, and great rates!

Kevin B.

5 Stars 300x52 1

Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.

Naomi R.


Hurst Lending
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The Hurst Lending Difference

Funding Choices

Low downpayment options available.

Quick Decisions

With a quick closing and no red tape.

Great Rates

We offer some of the best rates available.

Problem Solving

Creative approaches for unique situations

Competitive Barndominium Rates

Our bardominium construction loan rates are competitive, and might even be lower.

Frequently Asked Questions

Do you allow barndominium construction projects?

Yes, we allow barndominium construction projects and provide loans for them.

Can I roll in the land loan into the construction loan?

If you currently have a land loan and plan to build on that property, you must roll the land loan into the construction loan.

Is there a maximum acreage restriction?

The maximum acreage for a bardominium is ten acres. However, you can subdivide a portion of your land to stay under the maximum.

What is the difference between a 1x close and 2x close construction loan?

A one-time close construction loan combines construction loan and permanent loan financing into a single closing. When the house is finished, you are not required to refinance the construction loan into a permanent loan. A 2-time close construction loan requires two closings: one for the construction loan and one for the permanent loan when the house is complete. Once the house is built, you must refinance the construction loan into a permanent loan.

Can I buy the land with the construction loan?

Yes, you can combine the purchase of the land and the construction loan into one loan with one closing.

What are the credit score requirements for a construction loan?

The minimum credit score for a conventional construction loan is 680.  The minimum credit score for a FHA or VA construction loan is 640.

Can I choose any builder?

Yes, you can choose any builder; however, there is a builder acceptance review process. We must approve the builder based on years of experience, size of the business, and in some cases, credit scores.

Can I build my own house?

We do not currently offer any products that allow for self-build homes. On all of our construction loan products, we do require a separate, unrelated general contractor.

What is the downpayment requirement for a barndominium construction loan?

The minimum down payment requirements are:

  • Conventional construction loan is 5%
  • FHA construction loan is 3.5%
  • VA construction loan 0%

Bandominium Expertise

We help simplify the barndominium loan process & get you a low downpayment.

About Hurst Lending

We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process.  Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to get a No-Seasoning Cash-out loan; Being unable to obtain a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments?  Our Industry-leading suite of short-term loans solves these issues.  We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.