At United Ag Lending, we’re enthusiastic about financing solutions for unique agricultural properties, including barndominiums. Discover how we maintain our reputation as a solid wholesale partner for barndominium loans in this blog.
What’s a Barndominium?
A barndominium (also known as a barndo or shed home) is a smaller home that can work as a farmer’s workspace. It has a
typical house setup with a kitchen, bathroom, and bedrooms separated from the living space.
UA’s Wholesale Barndominium Loans
We frequently use our hobby farm loan and rural real estate loan program to finance barndominium loans. That’s because most commonly, clients who wish to have a barndominium are choosing to:
- Use it as their primary or secondary residence.
- Live on some land for small-scale farming purposes.
Wholesale Barndominium Hobby Farm Loan
Do you have a client who wants to use their barndominium as their primary or secondary residence, which also serves as a small-scale, part-time farm? This program is a great option!
Loan Considerations
- We offer 15- and 30-year fixed loan rates.
- Clients must want farming property on a minimum of 5 acres and an adjustable maximum of 160 acres (more allowed on a selective basis).
- Your customer can make money from their hobby, but it can’t be their leading source of income.
- We don’t have prepayment penalties.
- The hobby farm property’s primary home must only be 25% of its overall value, and its land can be greater than 30% of its appraised value.
- We allow multiple structures and homes on hobby farm property.
- Schedule F (Farm) income allowed.
Wholesale Barndominium Rural Real Estate Loan
This program is a good option if your client wants to live in a barndominium-style house in a rural setting.
Loan Considerations
- Loans for rural property with a dwelling up to 30% of its overall value.
- Can finance multiple structures on the property (pastures, sheds, and more).
- Combining multiple parcels of land is permitted.
- Fixed-rate 15- and 30-year loans.
- Schedule F (Farm) income allowed.
- Ag-exempt properties are accepted.
- Purchase, cash-out, and refinance loans accepted.
- The property must have a pre-existing home in a rural area.
- It must be your client’s primary or secondary house.
- Minimum credit score of 680.
- The property must be on a minimum of 5 acres and a maximum of 160 acres (some exceptions allowed).
Additional Wholesale Barndominium Loan Guidelines
The barndominiums we finance must have a house-like floor plan. We cannot finance structures such as open garages or studios. Structures also must be at least 1,000 square feet.
Choose UA as Your Wholesale Partner for Barndominium Loans
United Ag Lending is a powerful partner for financing rural property your clients need. Our knowledge, customer service, responsiveness, and communication skills make us an excellent resource for anyone who wants to originate an agricultural loan.
We are an exceptional wholesale partner for barndominium loans. Our loan officers are skilled at taking the conventional understanding of financing rural property and turning it into a flexible solution. You can count on our business to continue expanding its offerings, bringing the opportunity to originate mortgages for agricultural real estate to more and more loan officers nationwide.
Are you interested in becoming one of our trusted lending partners? Contact us today to find out more about our loan products and services.
United Ag Lending’s TPO Licensed States: Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and Wyoming
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