Financing a new barn?

[cold1313]

I just noticed that there isn't a storage or barn section to TBN. I posted under rural living because I am hoping to catch the attention and knowledge of the farmers out there.

I am in need (aren't we all) of an additional barn. I've owned the current home and small pole barn for 4 years, so equity is low and I have a extremely low interest rate from back then.

Plenty of banks are willing to let me refinance - no thanks. Local Ag Credit was ready to help me out with some good (farm related) finance options but I lease my fields, not personally farm them - so the programs didn't apply.

So I'm looking to see if there are other programs out there (small town bank, not sure the gentleman is aware of all possible programs). OR if there are programs where I can plant / raise, etc a specialty item and qualify for financing assistance, etc. I know there are programs to bring back wildlife, CRP, etc.

I doubt I'll find anything but I thought it would be worth asking on here. I only have a few acres to farm, so on paper, the "farm" doesn't bring in much revenue, but paying for it myself, I just need something to tide me over for 5-10 years I think. I plan to build it myself - so it's really just materials.

 

[rustyshakelford]

How big are you wanting and what’s the approx cost it’ll be?

Brett

 

[cold1313]

I've designed several sizes, 40x60' being the smallest. $50k in materials, all in I estimated and priced. That was for a larger size barn, maybe 60x80 or 40x80. Gabriel style barn, so I'll have a 2nd floor to store or use as a living area or something.

 

[smstonypoint]

I don't think you will find any cheaper source than a refinance if you can do so without paying any closing costs.

What is your current mortgage rate? The current (Nov. 16) average 30-year fixed rate is 3.95%.

Steve

 

[rustyshakelford]

Could do a personal line of credit. Seen them advertised for reasonable rates around 5-6% and terms of 60-72 months. Might be an option to look into

Brett

 

[rustyshakelford]

I don't think you will find any cheaper source than a refinance if you can do so without paying any closing costs.

What is your current mortgage rate? The current (Nov. 16) average 30-year fixed rate is 3.95%.

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Steve

He said he doesn’t have much equity built in so might be more trouble than it’s worth to do a cash out refi

Brett

 

[smstonypoint]

He said he doesn’t have much equity built in so might be more trouble than it’s worth to do a cash out refi

Brett

But he said "Plenty of banks are willing to let me refinance - no thanks."

Steve

 

[cold1313]

Agreed. The equity won't cover the funds required for the barn. I don't remember exactly but I'm under 3.5%

 

[smstonypoint]

Agreed. The equity won't cover the funds required for the barn. I don't remember exactly but I'm under 3.5%

Then put off building until you can afford to do so.

Steve

 

[cold1313]

Then put off building until you can afford to do so.

Steve

Doesn't address my question but thank you for your thought.