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.

 

[lennyzx11]

When I did door's and windows, Home Depot offered me a substantial 0% line of credit or credit card. I took the credit card.
It's only a 24 month payback for interest free but they keep offering to so the same deal on other purchases.
I don't need to borrow but 0% is 0%!

 

[cold1313]

Never thought about that, since I'm mostly after materials. Aside from concrete, I could stock up mostly at HD

 

[TheMan419]

Most of the big box stores will have zero percent for a period of time. How long do you need to pay the $50k back?

 

[mobilus]

If you have a paid-off vehicle, ask your bank or credit union what they can offer with the vehicle (s) as collateral. Four years ago, I did just that, at 1.5% IIRC. It'd be like buying your truck back and getting a barn to boot!

 

[kenmac]

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

Steve

It doesn't answer your question, but I agree

 

[cold1313]

If you have a paid-off vehicle, ask your bank or credit union what they can offer with the vehicle (s) as collateral. Four years ago, I did just that, at 1.5% IIRC. It'd be like buying your truck back and getting a barn to boot!

Truck isn't quite done yet. Offered up the two new tractors (paid for) and 10 acres of land (paid for) and still wasn't good enough. Banker couldn't understand it, but just repeating what the underwriters told him.

 

[mobilus]

It doesn't answer your question, but I agree

Agreed. I couldn't get the original builder to come back out to finish my shop. I had a weld-up metal building erected, but didn't want to touch savings, so I had one bay, 20'wide x 30'deep completed for a two-point lift, with a 40x30 shed left without concrete or a front/doors. After a couple years, the builder had lept into the big time and I was on my own. So I went to a concrete plant and asked for some names...one guy said he'd be out to bid the pad job that afternoon. After the concrete was down, I basically copied what the original builder did on the first bay to close it in. Had the doors installed professionally for less than I could get them retail. That's my story, and experience taught me that it is always better to finish the building at first than to do it in phases.

 

[rustyshakelford]

I don’t think someone needs to wait until they have 50k extra in their acct to get a shop to protect their stuff or have a place to work on things. Dave Ramsey thinking has a place but in our case I’d rather use someone else’s money for a cheap rate vs mine. Money in the bank/safe is liquid.

We just bought an rtv and diesel zero turn. About 35k worth of equipment. If I paid cash I could’ve saved a little bit of money. Maybe 1-2k. I decided to take advantage of kubotas 0% financing and keep the liquid cash. If something comes up I still have a surplus of cash and am only responsible for a small monthly note.

To the OP. Like I said earlier, check into a personal line of credit. I would imagine a smaller bank would be easier to work with unless you have a relationship with a larger company. Also, ask the barn builders. I know for pools they have companies that finance them left and right. Just had a buddy do that and it was easy as can be

Brett

 

[kcflhrc]

I guess if you want to build it yourself then the Home Depot route is probably a good and maybe your only choice. I think Butler and Morton Buildings has some kind of finance options. It will also depend greatly on your credit.

 

[MossRoad]

Have you ever done a net worth statement?