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How to Finance a Barn, Building, or Barndominium

By September 20, 2023No Comments
Finance a Barn at MD Barnmaster

Exploring the different types of financing available

The most difficult tasks in financing your project are choosing the right lender and selecting the best loan offer. With thousands of banks with dozens of loan products, your loan search has become a daunting task. Furthermore, who has time to spend countless hours researching banks? This article explores the different types of financing available and shortcuts to finding the right financial institution to work with.

Step 1: Obtaining a Quote

This may sound like an obvious first step, but many customers miss this essential starting point. Instead of planning their project and receiving a building quote, individuals and businesses will begin researching banks and financing first. Without a building estimate, the conversation with a financial expert will be limited and vague. This can lead to project details being missed or hypothetical scenarios being misinterpreted.


Once you have a quote, our lending manager will help you finance your project.

Step 2: Finding a Lender

Now that you have a quoted design, it is time to speak with a bank. It is ideal to work with a manufacturer who has customer financing options available. With established lender relationships, your building expert provides you with financial institutions that understand your project. MD Barnmaster works with a variety of lenders to meet our customers’ unique needs. We have you covered whether you need a horse barn for your home, a workshop for your business, or a riding arena on a plot of land. There is also financing for metal buildings, livestock/animal shelters, agriculture facilities, steel structures, barn kits, hobby barns, and barn homes.

Step 3: Finding a Loan Product

Financing your dream barn or building has never been easier! Below is a brief outline of financing options from our lending partners. Affordable financing is available for just about any project, but please use this information for educational purposes. MD Barnmaster is not a bank, lender, broker, or financial institution. This article is not a solicitation to lend.

Personal & Agriculture Lending

Loan products are geared toward individuals applying with their personal credit reports. You cannot apply for credit as a business entity.

  • Consumer Financing

We work with several lenders offering financing up to $150,000 in unsecured loans. Some applications can be approved instantly without providing proof of income. Barndominiums and barn homes are eligible. Structures for vacant land qualify. There are no restrictions for using the building for business purposes.

  • Home Improvement Financing

Unsecured financing up to $325,000. These loans are for projects at your primary residence where you live. Depending on the lender, Barndominiums or barn homes may be disqualified. Structures strictly for “business use” may be restricted.

  • Home Equity Products

Approvals up to $500,000 with payment options up to 30 years. You can choose between a term loan and a line of credit. One of our lenders can fund loans in five days. Other lenders offer introductory “No Monthly Payment Options.”

  • Personal Loans

These loans offer flexibility to build where you want without restrictions on how you use the funds. The price of this flexibility comes with lower loan limits of $40,000 – $100,000. The payment terms are often limited to 7, 10, or 12 years.

  • Farm, Agriculture & Equine Financing

If your new structure is for agriculture purposes or you are building on agriculture-zoned land, then you may be eligible for specialty Ag Financing. This includes farming, ranching, dairy, and equine services.

Agriculture lenders tend to be the most flexible and often approve customers without proof of income. Ag lenders consider all income and assets of the borrower. Many farm lending products have no loan limits.

Specialized payment plans are available, such as annual payments, semi-annual payments, and interest-only loans for up to 5 years. There are building loans up to 20 years, lines of credit up to 10 years, and building leases up to 10 years. The industry’s government-backed FSA financing boasts terms of up to 40 years and offers beginner loans for farmers and ranchers.

Business & Commercial Lending

  • Business loans consider the credit report and cash flow of a business. The structure you finance must be used for your business.
  • Building Lease

This option is similar to a rent-to-own arrangement. You are essentially renting the barn from the lender for a specific period. You become the owner of the building after making your final lease payment. The benefits may include a faster approval process and potential tax benefits (consult your tax advisor). Our leasing partner offers financing up to $5 Million with same-day approval. Proof of income may not be required for lease amounts below $500,000. Payment terms are limited to 5 years, and the business entity must be established for at least two years.

  • Interest Only Business Line of Credit

A line of credit may offer the flexibility that most business owners need. If you have been in business for at least three years, you may qualify for a revolving line of credit of up to $150,000. The first 12 months are interest only, with the ability to convert the outstanding balance into a 3 to 5-year term loan. There is no restriction on how you use the funds if it is for your business. Bank statements and a debt schedule are required for approval.

  • Commercial & Industrial Financing

These lenders offer financing up to $100 Million through SBA, USDA, and non-government facilities. Credit terms are from 10 years to 30 years, depending on the loan product. Eligible loan types are working capital, commercial real estate, equipment financing, and construction. Lines of credit and loans based on business assets or accounts receivables may be offered. Financing for new businesses and startups is also available.


Once you have a quote, our lending manager will help you finance your project.

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Sales: 3489 Hwy. 99 West Corning CA 96021

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