Does a VA Loan Cover a Barndominium? Your Dream

Before knowing “Does a VA Loan Cover a Barndominium” Let’s learn actually what Barndominiums is. : the marriage of rustic charm and modern functionality. These unique structures are gaining traction, especially among veterans dreaming of their custom-built haven. But the question lingers: can you use a VA loan to finance your barndominium dream? Buckle up, future homeowner, cos we are diving deep into the exciting, nuanced world of VA loans and barndominiums.

Does va loan cover barndominium
Does va loan cover barndominium

Unveiling the VA Loan: A Boon for Veterans

Let’s start with comprehending the workings of VA loans. These government-backed mortgages are only accessible to qualified veterans and service personnel, and they have amazing advantages:

  • No down payment required: Instead of paying a large down payment, use your hard-earned money to customize the barndominium of your dreams.
  • Competitive interest rates: Take advantage of cheaper rates than traditional loans, which could save you hundreds of dollars throughout the loan.
  • Sensible credit standards: VA loans are available even if your credit isn’t ideal because they value your service more than credit scores. 

Here’s the catch: the VA doesn’t lend money directly. They guarantee a portion of the loan issued by an approved lender, ensuring minimal risk for them. This means lenders have some additional requirements on top of the VA’s guidelines.

Decoding the Barndominium Conundrum: What You Need to Know

The distinction between conventional houses and agricultural buildings is blurred by barndominiums. This special quality occasionally presents problems in obtaining VA financing. This is the reason why:

  • Minimum property requirements (MPRs): Certain requirements are required by the VA for houses financed by their loans. These rules guarantee that the property is sound, safe, and appropriate for long-term occupancy.
  • Obstacles to appraisal: Because barndominiums are unusual, they may cause some skepticism during the appraisal process. An experienced appraiser with knowledge of barndominiums is essential.
  • Lender discretion: The decision to approve a VA loan for a barndominium rests with each lender. Certain lenders may be more receptive to the proposal than others.

Pro Tip: Consult a dedicated VA loan specialist with experience in financing barndominiums. They can navigate the nuances and guide you towards lenders comfortable with these unique structures.

Building Your Dream: VA Loans and Barndominium Construction

Is it possible to construct your barndominium entirely using a VA loan? Although theoretically feasible, it’s usually not advised. This is the reason why:

  • Complexities of construction loans: For barndominiums, VA construction loans have more stringent standards and might be difficult to get.
  • Magic of refinancing: Alternatively, consider obtaining a conventional construction loan for the building phase and refinancing with a VA loan after the barndominium is finished and satisfies all VA standards.

Refinancing 101: Turn your construction loan into a VA dream

Refinancing involves replacing your existing loan with a new one, ideally at a better rate and terms. Here’s how it works for barndominiums:

  1. Build your barndominium with a traditional construction loan.
  2. Ensure the completed structure meets all VA MPRs.
  3. Work with a VA loan specialist to refinance your construction loan into a VA loan.

This approach leverages the flexibility of construction loans while securing the long-term benefits of a VA loan.

So, Can You Use a VA Loan for Your Barndominium?

The answer is a resounding maybe! While VA loans can indeed finance barndominiums, it requires careful planning and understanding of the following:

  • Meet all VA MPRs: Your barndominium must function as a primary residence and comply with specific construction and design standards.
  • Find a qualified appraiser: An appraiser familiar with barndominiums is essential for a smooth approval process.
  • Shop around for lenders: Not all lenders are comfortable with barndominiums. Seek one with experience in this unique niche.
  • Consider construction loan and refinance: Building with a traditional loan and then refinancing with a VA loan can be a strategic approach.

Remember: Each barndominium and veteran’s situation is unique. Consult a VA loan specialist to assess your specific circumstances and create a personalized financing plan for your dream barndominium.


There’s a possibility that a VA loan could be the key to unlocking your ideal barndominium. Even though there are challenges to overcome, success can be achieved by comprehending the prerequisites, getting professional advice, and thinking strategically. Recall that fulfilling VA requirements, locating a certified appraiser and lender, and investigating refinancing alternatives for construction loans are essential. Don’t let the difficulties stop you; with the correct team and careful preparation, your ideal barndominium can come true. Thus, take action, consider your possibilities, and allow a VA loan to assist you in realizing your distinctive home-building goals.

See Also: What Happens if You Don’t Pay Back a Life Insurance Loan

FAQs: Does a VA Loan Cover a Barndominium?

1. Can I use a VA loan to buy an existing barndominium?

Yes, as long as it meets all VA MPRs and you intend to live there as your primary residence.

2. Are there any size restrictions for barndominiums financed with VA loans?

No, there isn’t a set size restriction. Still, the barndominium needs to be big enough to suit your demands as your primary home. When assessing appropriateness, the appraiser will take into account elements including total space footage, the number of bedrooms and bathrooms, and general functionality.

3. What if my barndominium has a detached workshop or garage?

A detached garage or workshop shouldn’t be a problem as long as it serves as the primary purpose of the structure and meets VA requirements for living quarters. It’s advisable to make clarifications in advance with your appraiser and lender, though.

4. What are the closing costs associated with a VA loan for a barndominium?

Closing costs are similar to conventional loans and typically range from 2% to 5% of the loan amount. These might include origination fees, appraisal fees, title insurance, and recording fees.

5. Can I use a VA loan to finance a barndominium on non-traditional foundations, like a slab or piers?

Yes, as long as the appraiser determines that the structure is safe and long-lasting, VA loans do not require a particular sort of foundation. However, it’s important to check with the lenders as they may have their preferences.

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