Financing Your Metal Building Barndominium: A Guide for First-Time Builders

While steel structures are familiar in high-rises and industrial buildings, they're now creating a buzz in the residential world in the form of metal building barndominiums. Compared to traditional construction, metal building barndominiums can save you time and money. But don't be fooled by the affordability—these structures are built to last. With the right manufacturer, you can ensure your barndominium is built with top-quality steel for long-lasting durability, safety, and energy efficiency. 

That said, although a metal building barndominium is more affordable than traditional construction, the project is still a substantial investment, and you might want to spread out the payments with financing.

In this guide, you will learn everything about financing a metal building barndominium. Read on to discover different financing options and how they can benefit your project.

Types of financing for metal barndominiums

One-time close loans are a popular way to finance steel buildings for residential use. It’s a single, all-in-one loan that combines both the construction loan and the permanent mortgage into one product. This means you will only go through the application and underwriting once and pay closing costs only once.

With a one-time close loan, you'll make interest-only payments during the construction phase of your metal building barndominium. This helps with cash flow while your new home is being built. Once construction is complete, the loan automatically converts into a traditional mortgage with regular principal and interest payments.

Apart from one-time close loans, the following options can also help you finance a metal building barndominium:

• Conventional loans - If you have a steady income with good credit, you may qualify for a non-government-backed traditional loan from a bank. This typically requires a 20% down payment.
• VA loans: These loans are ideal for eligible veterans and their spouses, with competitive rates and requiring no down payment.
• FHA loans: These loans have stricter guidelines (including a mortgage insurance requirement) because they’re backed by the government. The upside is that credit score and down payment requirements are lower.
• USDA loans: Available to builders in rural areas, these loans don’t need a down payment and offer competitive interest rates. However, income restrictions apply and are only suitable for certain property types.

Choosing a financing option

Take the time to find out your credit score, down payment amount, and income, so you can choose the right financing for your metal barndominium. Don’t forget to compare terms and rates from several lenders.

Metal-building fabricators can help.

Talk to an expert at Armstrong Steel Building Systems for personalized advice on your metal building barndominium. You can also check if your project is eligible for their Direct Buy program. Visit their website or call 1-800-345-4610 to get a quote.

About the Author:

Armstrong Steel, established in 2006, is your premier source for exceptional pre-engineered steel construction solutions. Specializing in manufacturing pre-engineered metal buildings, they offer durable, easy-to-assemble structures with versatile interior design options. Covering a wide range of building types such as commercial, residential, garage, workshop, religious, agriculture, industrial, aviation, and more. As the leading American manufacturer of steel buildings, Armstrong Steel provides versatile, custom-designed solutions for all your construction needs.