What Is A Barndominium?

In recent years, homebuyers looking for more flexibility, space, and affordability have started exploring alternatives to the traditional house. One option that has gained significant popularity is the barndominium — often shortened to “barndo.”

A barndominium is typically a metal or steel-frame building that combines the functionality of a barn with the comfort of a modern home. Originally inspired by agricultural structures, today’s barndominiums can include luxury finishes, open-concept layouts, workshops, garages, home offices, and expansive living spaces all under one roof.

Popularized by HGTV’s Fixer Upper, barndominiums have become especially attractive to buyers seeking rural living, customizable floor plans, and potentially lower construction costs compared to traditional homes.

In doing so, they educated millions on the term “barndominiums,” inspiring many to invest in and construct convertible barns. But why did that episode strike such a cord? In this article, learn why barndos are popular, the pros and cons of building them, and how to finance barndominium costs.

Why Are Barndominiums So Popular?

Barndominiums appeal to homeowners because they offer:

• Open floor plans
• High ceilings
• Large garages or workshops
• Flexible layouts
• Durable metal construction
• Energy-efficient design opportunities
• Lower maintenance requirements

Many buyers appreciate the ability to create a completely custom living space that fits their lifestyle — whether that means extra storage for recreational vehicles, a home business workspace, or multi-generational living arrangements.

In areas like Southern Arizona, barndominiums can also complement larger lots and rural properties where homeowners want additional flexibility and outdoor space.

The Appeal of Barndominium Living

Owners are drawn to barndos because they offer a blank slate for customization and design. They offer ample square footage with open-area buildings that can handle several uses traditional homes cannot.

Barndominium Pros

Customization and Flexibility

One of the biggest advantages of a barndominium is the freedom to design the interior however you want. Because many barndos are built with steel frames and wide-open interiors, owners can customize layouts with fewer structural limitations.

Durability

Steel-frame construction offers strong resistance to pests, fire, and severe weather. Metal exteriors also tend to require less maintenance over time compared to traditional wood construction.

Spacious Living

Barndominiums often provide significantly more square footage for the price, making them ideal for buyers who want large kitchens, oversized garages, workshops, or entertainment areas.

Potential Energy Efficiency

With proper insulation and modern HVAC systems, barndominiums can be designed for excellent energy efficiency — especially important in Arizona’s desert climate. 

Barndominium Cons

While barndominiums offer many advantages, there are also some challenges buyers should understand before starting construction.

Financing Can Be More Complicated

Because barndominiums are still considered somewhat non-traditional housing, some lenders may have stricter requirements or limited loan programs available.

Zoning and Permits

Local zoning laws and building codes can vary significantly by county or municipality. Some areas may impose restrictions on metal buildings or mixed-use structures.

Appraisal Challenges

Since barndominiums are less common than traditional homes, finding comparable sales for appraisals can sometimes be difficult.

Resale Considerations

Although popularity is growing, barndominiums may appeal to a smaller pool of buyers depending on location and design.

How Much Does it Cost To Build a Barndominium?

The cost of building a barndominium depends on factors like:

• Land acquisition
• Site preparation
• Foundation work
• Materials
• Interior finishes
• Plumbing and electrical systems
• HVAC installation
• Permits and inspections

According to industry estimates, converting or building a barndominium can range anywhere from approximately $120,000 to $500,000 depending on size and customization level. Basic barndominium kits may cost between $10 and $30 per square foot before interior finishing costs are added.

How Long Does It Take To Build A Barndominium?

The timeline for constructing a barndominium varies based on several factors. These include the design's complexity, the structure's size, the level of customization, and the efficiency of the construction crew. Here’s a breakdown of what you can generally expect:

1. Planning and Design Phase (1-3 months)

• Initial Planning: This includes deciding on the layout, design features, and overall vision for the barndominium. Consulting with architects or designers is a part of this phase.
• Blueprints and Permits: Finalizing blueprints and obtaining necessary building permits can take weeks to months, depending on local regulations and the project's complexity.

2. Site Preparation (1-2 months)

• Clearing Land: If the land is not prepared, clearing and leveling the site is the first step.
• Foundation Work: Pouring the foundation or laying a concrete slab typically takes a few weeks, depending on weather conditions and site accessibility.

3. Construction Phase (3-6 months)

• Framing and Shell Construction: Erecting the steel frame or wooden structure and installing the exterior shell, including roofing and siding, usually takes 1-2 months.
• Interior Build-Out: This involves installing insulation, plumbing, electrical systems, and HVAC, which can take another 1-2 months.
• Finishing Touches: Installing drywall, flooring, cabinetry, and other interior finishes can take 1-2 months, depending on the level of customization and detail.

4. Final Inspections and Landscaping (1-2 months)

• Inspections: Local building authorities will need to inspect the structure to ensure it meets all codes and standards. This can take a few weeks.
• Landscaping and Exterior Work: Final touches on the exterior, including driveways, walkways, and landscaping, usually take a few weeks to a month.

Total Time: Approximately 6-12 months

While the average time to build a barndominium is 6 to 12 months, this timeline can vary significantly based on factors such as weather conditions, materials availability, labor, and the complexity of the project. Efficient planning and hiring experienced professionals can help streamline the process and avoid unnecessary delays.

If you're considering building a barndominium, consulting with a contractor specializing in these types of structures can provide a more tailored timeline and help you navigate the specific requirements of your project.

Barndominium Financing Options

Prospective barndo owners have a few ways of financing their renovations. Again, these options may be limited by local building and zoning restrictions. Nevertheless, most renovators have access to some form of financing, whether traditional or alternative.

Conventional Loan

If available in your area, a conventional loan can help finance the renovation of your barndo. Certain traditional lenders may have specialized experience in barndos and are likely to accommodate your rebuilding needs.

The typical process for applying for a conventional barndo loan hinges on very specific, detailed renovation plans. Prospective barndo owners usually need to get the property value appraised and make a down payment. After they receive the construction loan and complete renovations, they convert the loan into a standard mortgage.

• The advantages of conventional loans for barndo dwellings are compelling. Interest rates are usually lower and can be either fixed or adjustable. They’re easily customizable and offer a direct way to increase home equity, with longer terms than other loan types.
• Some drawbacks of conventional loans include strict requirements. A positive credit history, reliable income sources, and a solid debt-to-income ratio are among the typical criteria for loan approval. 

Appraisals for barndos can be challenging as well. Interest-only payments may be difficult, especially if construction runs into delays. Upfront costs may also be prohibitively high.

Get Started With a Conventional Loan

Find the right conventional loan option for you.

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Construction Loan

A construction loan is short-term financing for building a new home. This option can usually be applied to renovating a barndo.

Like a conventional loan, the application process involves submitting very detailed construction plans and getting pre-approval. The borrower only pays interest during the loan term. When finished, the loan is converted to a traditional mortgage.

• The advantages of a construction loan are its flexibility. Construction lenders are diligent about vetting local builders and structuring loan payments. Along with paying off interest only, borrowers can obtain better terms according to their loan-to-value ratios.
• The cons of a construction loan include the strong possibility of higher interest rates and a complicated approval process. The short-term nature of construction loans can lead to timing challenges. Since 12 to 18 months may not be enough to complete construction, you risk ending up with partially built structures. This can lead to budget overruns. 

How To Get a Construction Loan

Learn how to get a construction loan—the types, qualifications, and application process—to finance your dream build.

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Final Thoughts

In conclusion, building a barndominium offers a unique and customizable living experience that many homeowners find appealing.

However, the financial aspect of such a project can be complex. Understanding your financing options ensures a smooth construction process and a successful outcome.

You can explore the best loan options for your barndominium project by consulting with a knowledgeable mortgage lender. They can help you navigate the application process, secure favorable terms, and ultimately bring your dream barndominium to life.

Don’t hesitate to contact a mortgage lender today to discuss how you can finance your barndominium and start building your ideal living space.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.