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Duct Tape Bikini Girl
Posts: 2554
  
| Hmmm....never finance for hobbies. I take it you didn't major in education. Sorry, I would have absolutely NOTHING without the option to finance! I am proud to say my husband and I, both RICH teachers, have a home, 3 acres, two trucks, a horse trailer, and a barn. YES, they were all financed, and paid for completely. It is possible. Never give up.  |
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Elite Veteran
Posts: 1074
| I agree. You need to be reasonable with what you finance, but financing isn't evil. If you don't have to finance that's great, but don't make others feel bad because they went to the bank and borrowed money. Everything needs to be within reason, and if you can afford the payment, then go for it. It's no one else's business anyway. I know of several people that have financed barns. Some have done it with a home equity loan and some have financed the actual barn. |
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 Baby Blue's
Posts: 7304
 
Location: Texas | TACKyPaints - 2015-01-17 9:33 AM We are hoping to build a barn this summer/fall too. My husband went and talked to a local bank and they basically said the way they do it is by doing a home equity loan. So we'll have to have our house appraised and then whatever amount OVER that it's appraised for is the amount we can borrow. So if a house was bought for 100k, but appraised out at 150k, then you would be able to borrow 50k. That's how they explained it to us.
I'm pretty sure home equity loans will lend at 80% of the appraised value. I've never had one but in your example, you would receive $20,000 since 80% of $150,000 is $120,000.
As to the financing of the barn, I mean, you gotta do what you gotta do. Just last Saturday we paid cash for a barn to be built. I was grateful because when you pay cash, you spend much differently than if you're financing but at the end of the day, you have to have a barn. We live in a VERY mild climate but watching our horses get rained on for 6 months was not fun.
Like anything, I'd always advise getting only what you need. The average horse trailer on the road is ridiculous (the purpose for 90% of the ones on the road are to get from point A to point B) and it depreciates! More than likely, a barn will not increase the value of your property dollar for dollar - especially if you go over the necessities that a barn actually provides (storage and shelter). |
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 Midget Lover
Location: Kentucky | We financed our barn through a home equity loan. We live in horse country, so although a barn doesn't add monetary value to our house, it will beat out a comparable piece of property with no barn.
We have very, very little debt, so taking out this loan didn't stress me out. |
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  Warmblood with Wings
Posts: 27846
Location: Florida.. | I have never financed either.. paid for a morton barn which I love and highly recommend.. but it didnt add much to property value.. so dont count on that..
nice barns are great!!
do whats needed but keep it within your own limits.. |
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 Worst.Housekeeper.EVER.
Location: Missouri | Murphy - 2015-01-19 9:33 AM We financed our barn through a home equity loan. We live in horse country, so although a barn doesn't add monetary value to our house, it will beat out a comparable piece of property with no barn.
We have very, very little debt, so taking out this loan didn't stress me out. I was surprised by this when we started the process of building our home/barn.
We ended up doing separate loans so that we could get the house on the secondary market without the hassle of including the barn.
I PMd the OP with our lending options. Don't get discouraged! It's a headache getting started. Hope it works out! And, remember to post pics!!!!!
Edited by just4fun 2015-01-19 10:00 AM
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 World 4D Champ
Posts: 28264
Location: PA | Thanks everyone for the options!! Many different avenue to look into! |
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