- VA loans can be used to purchase a barndominium if it serves as a primary residence and meets VA property standards.
- Building a barndominium with a VA loan is possible, but lender availability may be limited.
Barndominiums have become an extremely popular home option over the last few years, and you may be wondering if this property type can be used with a VA loan. They've been showcased regularly on DIY and real estate shows, which has helped to introduce these unique homes to a wider group of homeowners. In turn, barndominiums have become a top choice for many homeowners.
If you’re looking for a home with room to live, space to work and the option to customize it to your needs, a barndominium may be worth considering. Here’s what you need to know about this unique home type.
What is a Barndominium?
A barndominium — a combination of the words “barn” and “condominium” — is what it sounds like: a barn that has been converted into a home. These types of homes are created either by converting an existing barn into a living space or building from the ground up to the owner’s specifications.
One of the main attractions of barndominiums is that their interior spaces are easily customized and versatile. There are typically two options for the exterior of these structures:
- A pole barndominium, which often uses wood post-frame construction
- A traditional barndominium, which often uses a metal and steel frame for support
In both cases, the exterior provides a solid structure and does not require load-bearing walls on the interior, which means the construction process is less labor-intensive.
Can I Build or Buy a Barndominium With a VA Loan?
Yes, generally it’s possible to build or buy an existing barndominium with a VA loan. The barndominium must meet the VA’s occupancy requirements and property standards, along with other lender guidelines.
A VA loan requires that the property being purchased be used as a primary residence. Therefore, if you are applying for a VA loan to build or buy a barndominium, you must intend to live in the home full time.
Note: Veterans United does not offer financing for new construction.
Barndominium Property Requirements
All barndominiums must be in line with the VA loan inspection requirements, which include the following:
- Electric, heating and cooling systems must be working and in good condition
- Roofing must be adequate and built to last
- The size must be sufficient for basic living needs
- Water supply must be continuous and clean
- The home must be free of any lead-based paint and any issues with wood-destroying insects, fungus and dry rot
- The home must have safe and sanitary sewage disposal
- The home must be accessible from an all-weather public or private street
- Attics and crawl spaces must be accessible and properly vented
If the barndominium can meet these minimum VA standards, you are potentially eligible to build or buy it with a VA loan.
The VA appraisal is also a key part of the process. One challenge with this type of housing is that it’s uncommon. That can make it tough for appraisers to find good recent comparable home sales.
If you're interested in this type of home, be sure to let your real estate agent and lender know as soon as possible.
Using Your VA Loan Benefit to Build a Barndominium
Building a barndominium from the ground up with a VA loan can be tricky. It’s possible to do, but because there are risks associated with new construction, many VA lenders, including Veterans United, opt not to offer VA construction loans.
In some cases, it might be easier to obtain a construction loan from a builder or bank instead. Construction loans are short-term, higher-interest loans that give you the funds required to build your home. These loans will typically be issued for a one-year period and are used to finance only the construction of a home.
If you choose to finance the construction of your barndominium with a conventional construction loan, you may be able to refinance the loan with a VA Cash-Out refinance after the home has been built. Refinance guidelines can vary by lender.
Are Barndominiums Cheaper Than Regular Homes?
Barndominiums are typically cheaper than traditional brick-and-mortar homes because the construction process is much simpler. That said, the type of exterior construction materials will have an impact on the total price.
In general, steel barndominiums are more expensive to build than pole barndominiums. But in both cases, many other factors, like the cost of the interior fixtures, the materials and the size of the structure, can add to the cost of the home.
Final Thoughts
Barndominiums can be a great option for buying or building an affordable, versatile and custom home. These structures make it easy to combine work and living into one open-concept space and the purchase can typically be funded by a VA loan.
If you're interested, alk to a Veterans United VA loan expert at 855-870-8845 or get started online today.
How We Maintain Content Accuracy
Our mortgage experts continuously track industry trends, regulatory changes, and market conditions to keep our information accurate and relevant. We update our articles whenever new insights or updates become available to help you make informed homebuying and selling decisions.
Current Version
May 16, 2025
Written ByChris Birk
Reviewed ByTara Dometrorch
Minimal updates to content and fact checked by team lead underwriter Tara Dometrorch.
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