Barndominiums and VA loans are becoming an increasingly popular match among veterans who want flexible, affordable living. These unique barn-style homes offer wide open layouts and lower building costs—ideal for those looking to maximize space and value. If you’re an eligible service member or veteran, you may be asking: Can you use a VA loan to buy or build a barndominium? The short answer is yes, but only if the property meets all VA loan requirements.

What Is a Barndominium?

A barndominium—a blend of “barn” and “condominium“—is a barn-style building that has been converted into a residence or constructed as a home from the start. Known for open-concept layouts and durability, barndominiums offer customizable living spaces that appeal to both rural and modern buyers.

There are two primary types:

Barndominium Type	Description
Pole Barn Home	Built with wood post-frame construction.
Steel Frame Barndo	Constructed using a steel shell and interior framing for long-term strength.

Both designs allow non-load-bearing interior walls, giving homeowners full control over their floor plans.

Can You Buy a Barndominium with a VA Loan?

Yes, you can buy a barndominium with a VA loan if it meets VA’s minimum property requirements (MPRs) and will serve as your primary residence.

Here’s what the home must include to qualify:

VA Requirement	Details
Safety and Soundness	Structurally sound, free of hazards like lead paint or pest damage.
Functional Utilities	Must have working plumbing, electrical, and HVAC systems.
Clean Water & Sewage	Requires access to potable water and adequate sewage disposal.
Road Access	Accessible via a public or all-weather private road.

One potential hurdle is the VA appraisal process. Since barndominiums are less common, appraisers may struggle to find comparable nearby sales. This can delay approval or reduce the loan amount.

Can You Build a Barndominium with a VA Loan?

You can build a barndominium using a VA loan, but the process is more complicated. Not all lenders offer VA construction loans, and those that do may impose strict guidelines.

If your lender doesn’t offer construction-to-permanent VA financing, consider this path:

1. Secure a construction loan from a local lender, bank, or credit union.
2. Complete the build, making sure all features meet VA MPRs.
3. Refinance using a VA cash-out refinance to pay off the construction loan and convert to a VA mortgage.

Always check if your lender supports this two-step process or offers a VA-backed construction loan.

Are Barndominiums Cheaper to Build?

Barndominiums are often more affordable than traditional homes, primarily due to faster, simpler construction. However, prices vary based on:

Cost Factor	Impact on Price
Framing Material	Steel typically costs more but adds durability.
Square Footage	Larger spaces cost more to finish and furnish.
Interior Finishes	Custom cabinets, flooring, and fixtures can increase the final cost.

While barndominiums save on construction, high-end finishes or larger footprints may raise the total investment.

VA Loan Tips for Buying or Building a Barndominium

To make the process smoother, consider the following tips:

• Hire an agent familiar with both barndominiums and VA loans.
• Review VA guidelines early to ensure the property or floor plan complies.
• Expect delays during the appraisal or construction phase.
• Prepare a backup plan if VA construction loans are unavailable from your chosen lender.

Is a Barndominium Right For You?

Barndominiums offer a unique blend of modern living and rural charm, making them an attractive option for many veterans and service members. With the right planning and lender support, you can absolutely use your VA loan to buy or build a barndominium. Just be sure the property meets all VA guidelines and that you’re working with professionals experienced in both VA lending and non-traditional homes. Whether you’re dreaming of wide-open spaces or a fully customized interior, your VA benefits can help turn that vision into reality.

 

Get My Custom Rate Quote

No SSN required. Zero impact to credit. Your Information is never sold.