In recent years, the popularity of pole barn houses has grown significantly. One of the main reasons for this is because of how affordable these structures can be. While this is true, there are some possible obstacles that some people don’t think about as they begin considering if this type of house is right for them. Being fully informed and knowing what is offered by these structures is the best way to know if it is a venture someone should get into. Keep reading to learn more about these structures.
Financing Considerations
When it comes to pole barn houses, often called Shouses, it can be more challenging to get a traditional mortgage. For example, the big lenders like Fannie Mae and Freddie Mack don’t offer these loans – at all.
The small number of entities that offer mortgages for a pole barn home will usually have more stringent requirements. This is because they use internal funds for financing. In most cases, the buyer will have to make a down payment of at least 30%, but sometimes it can be significantly more than this.
The Reasons Behind the Additional Down Payment Required
To put things simply, the pole barn houses are much more challenging to resell. Traditional lenders, such as banks and credit unions are going to want to get their money back, along with interest, on the loans that are issued. Today, most lenders view traditional construction home loans as a more reliable investment than pole barn homes.
Because traditional home-building has garnered so much interest for more than 100 years, it is predicted that this enthusiasm will remain in place for the duration of an issued loan. Because home loans are considered long-term investments, lenders want to make sure potential clientele is interested in the property, even when the current buyer no longer is.
Framing and Insulation Considerations
While financing may be difficult, these homes are typically much more affordable than traditional homes, which makes it possible to purchase the structure outright. Even with the additional framing between the posts and additional insulation required, the cost is usually much lower than traditional building methods.
Keep in mind that the additional insulation should not be skipped, as this may make it harder to keep the interior a comfortable and consistent temperature. If someone is not sure what is needed, it is best to work with the builder and make sure the right specifications are provided.
Building a Pole Barn House
When building a pole barn house, there are a lot of factors to think about. Be sure to keep the information here in mind to know what to expect and think about when it comes to this type of construction. In the long run, this type of house can help someone get the house they want and minimize the issues that may go along with traditional construction. Being informed and knowing what to expect from the building process is the best way to make the right decision about this type of construction method.
