Financing a barn build?
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Thread: Financing a barn build?

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    Hey, I want a title too! ZachinCO's Avatar
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    Financing a barn build?

    Wondering if anyone can share their experiences.

    I've got the price for what we'd like to do and can put about 1/2 the total cost out of savings, but will have to finance the other half. Wondering what others have experienced.
    I know it probably depends on total cost, and I'd rather not give the total.


    I'm looking at what others have done as far as types of loans, what questions did the lenders ask, etc. I can do a HELOC, but I'd rather not.

    TIA for your insights and experiences.

    Zach
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    Senior GTT Super Slacker Gizmo2's Avatar
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    Why not a HELOC?
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    Keith

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    ky_shawn's Avatar
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    Do you have a farm/tax number or I guess in general set up as any type of "ag" operation?
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    Hey, I want a title too! ZachinCO's Avatar
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    Quote Originally Posted by Gizmo2 View Post
    Why not a HELOC?
    Home Equity Line of Credit
    Quote Originally Posted by ky_shawn View Post
    Do you have a farm/tax number or I guess in general set up as any type of "ag" operation?
    I'm registered with the county as Ag status with my cattle. That is a double edge sword with the current mortgage company. Basically they said the cattle may disqualify the loan and affect our current mortgage.
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    ky_shawn's Avatar
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    Quote Originally Posted by ZachinCO View Post
    Home Equity Line of Credit

    I'm registered with the county as Ag status with my cattle. That is a double edge sword with the current mortgage company. Basically they said the cattle may disqualify the loan and affect our current mortgage.
    Things vary state to state as with everything but I have worked with clients who wanted to do exactly as you are. For some they paid on their current mortgage for some time holding off on barn construction, then did some refinancing to pull their plan together. Others opted to use financing options from barn/construction outfits however the cost of the barn so far exceeded what local companies could build the barn for, I personally didn't see the cost of the barn being worth the ability to finance it through them. I know local banks can get a little fussy on their lending. They will loan for a detached "garage" but if you mention the word "barn" things can get shaky. I would google "ag construction lending (your state)" and research what is available. With some paper pushing a lot is possible. It may all become a major hassle and the home equity line of credit is the easiest or quickest option. I'm sure after recently paying closing costs to purchase your home, going through that whole ordeal is not appealing at all with refinancing and so forth.
    Last edited by ky_shawn; 03-16-2018 at 12:00 PM.
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    Senior GTT Super Slacker Gizmo2's Avatar
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    Quote Originally Posted by ZachinCO View Post
    Home Equity Line of Credit
    Yeah I know. Why not a HELOC?
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    Keith

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    Hey, I want a title too! ZachinCO's Avatar
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    Quote Originally Posted by Gizmo2 View Post
    Yeah I know. Why not a HELOC?
    Sorry, been sniffing paint fumes...

    It's rather complicated, but it relates to having cattle as a business and how that appears on your taxes. Loan institutions don't mind the horses on property, but cattle are a different story.
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    Hey, I want a title too! ZachinCO's Avatar
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    Well, for the moment my barn is on hold. Hopefully I'll have updates in the upcoming few months...
    MINE!! 2016 New Holland T4.75

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    Just wondering if the planned barn will generate any drect income for your farm? For example, will you use any of it for boarding horses?
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