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.