Tag Archives: floor plans and elevations

Barndominium Plans Before Land?

Barndominium Plans Before Land?

Unlike chicken or egg coming first, barndominium floor plans should come second, after a place to build has been determined.

Reader STEVE in MILWAUKEE writes:

I am interested in developing plans for the barndo-square with internal courtyard. I don’t have the land for it bought yet, so is it a waste of time to get started on the plans already? If the foundation will be a slab, can the specifics about the land it is going on be on be determined later? Maybe assume the land will simply be level to start? Or is the point of owning the land to make sure the building plans follow the local building code from the start?

As for making the property wheelchair accessible, I plan on having my parents move in with me eventually. They are not in wheelchairs yet, but my uncle is and I see what a hassle it is for him to get around normal houses when we have family gatherings. Plus I think one-level and wider doors and wider hallways are good things if the square footage allows.

My current situation is a ranch house with a large shed outbuilding on 13 acres, on its own well, septic, furnace fuel oil. This is just so you know I am not naively wanting the country life, it is how I grew up and how I prefer to live. I also plan to build in an area with a few good barndo-type builders, north of Milwaukee WI. So I think the entire plan is doable once I secure financing. It is my understanding that having plans in hand makes it more likely to get a construction loan.

This might be against your own interests, but do you think I should develop the plans directly with the builder I choose since I will choose a barndo-builder and not a traditional house builder? Each of their websites show that they can make the plans too. Or is it a good idea to approach the barndo-builder with general plans and fine-tune the plans with the barndo-builder?”

Mike the Pole Barn Guru advises:

I didn’t learn much in architecture school however one lesson was your site should be determined so room orientations can be appropriate in relationship to access from roadways, any possible views, north-south orientation, slope of site, etc. Other than minimum room dimensions and egress issues, your floor plans will have little to do with Code requirements. Your structural plans will need to be generated after you have developed a floor plan and will be relevant to climactic conditions specific to your site (most often overlooked is wind exposure).

You will need to have professionally produced floor plans and elevation drawings to secure financing. You do not need structural drawings. Very few builders have an architectural or structural background adequate to prepare or provide what will truly best meet your needs. An experienced professional Building Designer should be just the ticket. You can find ours here: http://www.hansenpolebuildings.com/post-frame-floor-plans/

Things to Complete Before Going to a Barndominium Lender

Folks who are contemplating building a barndominium come in a variety of shapes and sizes, as well as financial positions. Some are at or near an end to their working careers and are downsizing, selling or have sold a long term family home and have equity to be used for their last home. Others are at an opposite end of life – young(er), working hard, have a few dollars squirreled away, but need assistance from a financial institution in order to put everything together.

Prior to delving deeper into this financial pond, I will give you my one most important piece of advice to successful barndominium financing (drum roll please)……

Do not EVER say, “I need a loan to build a barndominium”. (Barndominium can be replaced by shouse, pole barn (or post frame) home with equally bad results.

Should you choose to ignore this advice, it will result in eyes glazing over and most often hearing these dreaded words, “We do not do those types of loans”.

What you DO say is, “I need a loan to construct a fully engineered, custom designed, wood framed home with steel roofing and siding”. Period.

But won’t my lender send out engineers and inspectors who will “catch” me building a barndominium, shouse or post frame home?  No. Your lender will be concerned about progress, not how you are getting there.

Before going to a lender you will need a place to build (land), blueprints (floor plans and elevations) and a budget (or contract subject to finance approval with a builder).

Lenders for construction loans have to know a few things:

Your mortgage ceiling. No matter what you will not be approved for a construction loan higher than an amount you would be approved for a mortgage. Obviously this is because when construction is done this loan has to convert to a mortgage.

This is your top end budget.

Your lender needs to appraise both land and plans. Where you are going to build needs to be, at a minimum, under a purchase contract. It doesn’t matter if you owe on it, but it can’t be just “a place we’d like to get”. In addition they’ll need your blueprints with a fairly solid idea of finishes. These do NOT need to be structural drawings, but must include complete floor plans as well as elevation drawings.

You can get those floor plans and elevations done with a minimal investment here http://www.hansenpolebuildings.com/post-frame-floor-plans/?fbclid=IwAR2ta5IFSxrltv5eAyBVmg-JUsoPfy9hbWtP86svOTPfG1q5pGmfhA7yd5Q

They need this because they need to appraise your land and your future house. They need to put a value on it so they can give you a funding total.

Normally they’ll fund 80% of their appraised value.

Your builder contract (or your budget). This lets them know how much you NEED to borrow to pay off  land (if you owe on it) and build whatever was in your plans they appraised.

You can use this to help develop a budget: https://www.hansenpolebuildings.com/2019/07/how-much-will-my-barndominium-cost/

If your costs are below 80% of their appraised value you don’t need to pay them any money down. If it however is HIGHER than 80% of appraised value, you’ll need to put down money to cover this gap.

Basically no one can loan you money unless they have a very detailed idea of what you are going to build, how much you are approved for, and what it is going to cost. Pretty much every detailed aspect of budget, plan and approval need to be nicely put into a package and tied with a ribbon and a bow prior to heading to a lender.