How a barndo loan works
Most lenders treat barndominiums like a problem. This program was built around them — custom builds, shops with living quarters, and barn-style homes on your land. Four steps between you and breaking ground:
Get pre-qualified
Sixty seconds on the form, or call me. We'll review your project, budget, and land situation so you know exactly where you stand before you spend a dime with a builder.
Get your builder approved
Send me your builder's info. Approval typically lands in 24–48 hours — and once a builder is approved, they're approved. Your builder creates their own draw schedule.
Close once & build
One application, one closing covers the land (if you're buying it) and the construction. The build period runs up to 12 months, and you pay interest only on the amount drawn, at your permanent rate.
Convert & move in
At 100% complete, your loan converts immediately to permanent financing — with a rate float-down option at conversion. No second loan, no second closing, no surprises.
The barndo loan, in plain numbers
Construction-to-permanent financing for primary-residence barndominiums, sized by project amount:
| Project amount | Max financing | Down payment |
|---|---|---|
| Up to $1,000,000 | 95% | 5% |
| $1,000,001 – $1,500,000 | 90% | 10% |
| $1,500,001 – $3,000,000 | 80% | 20% |
- One-time close — one application and one closing for land, construction, and your permanent mortgage
- 12-month construction period, not counted against your permanent loan term
- Interest-only during the build — on the amount actually drawn, at your permanent rate; funds release in stages as work is completed
- Converts at 100% complete to permanent financing, with a rate float-down option at conversion
- Land can be part of the deal — buy your lot and build with the same loan, or build on land you already own
- PMI and escrow are required when financing is over 80% of the value — no surprises, it's right here in writing
- Primary residence only — no vacation homes or investment properties on this program
Program guidelines are subject to change; figures shown are a program overview only — final terms are determined in underwriting. Talk to a specialist, not a call center: (727) 415-9960.
Don't own land yet? Start with a lot loan.
Found the perfect piece of dirt but not ready to build? A lot loan lets you lock up the land now and build when the timing's right — for land you intend to build your primary home on.
- 80% financing — 20% down on your lot, up to 10 acres with intent to build
- 10-year fixed, or a 15-year term with a 20-year payment (balloon note) to keep the payment lower
- 680 minimum credit score · 43% max DTI · purchase only
- Down payment can be a gift — gift of equity allowed too
- Seller concessions up to 6%
- Extra Credit Discount eligible — 0.125% off with a Liberty FCU checking account + autopay
Buy the dirt now, build when you're ready. When that day comes, we structure the one-time-close construction loan around your lot — and if you want land + build in a single loan from day one, that's the construction program above. Either way: start with the form or call (727) 415-9960.
Your builder. Your schedule. Approved fast.
Liberty Federal Credit Union is proud to partner with buyers and builders to provide flexible financing solutions for primary-residence barndominiums. Bring the builder you already trust — here's how we treat them:
Builder approval in 24–48 hours
Fast approvals are the whole point. Send us your builder's info and approval typically lands in 24–48 hours — and an approved builder stays approved.
Builder creates their own draw schedule
Simple. Flexible. Built for you. Your builder sets the draw schedule that matches how they actually build — not a bank template that slows the job down.
Custom builds welcome
Barndominiums, shops with living quarters, and custom homes. If you can dream it on your land, we'll walk the financing — up to $3MM. Big dreams, bigger possibilities.
Already picked a builder? Start the form and put them in touch with me — or call (727) 415-9960 and I'll take it from there.
Barndominium loan questions, answered
What is a barndominium loan?
A barndominium loan is a construction-to-permanent loan built for barndominiums, shophouses, and barn-style homes. Instead of two separate loans and two closings, you get one application and one closing that covers the land (if you need it), the build, and your permanent mortgage. Many lenders won't finance metal-building homes at all — this program is built around them.
How much do I need for a down payment?
Financing runs up to 95% of the project on builds up to $1,000,000 — as little as 5% down. From $1,000,001 to $1,500,000 it's up to 90% (10% down), and from $1,500,001 to $3,000,000 up to 80% (20% down). When financing is over 80% of the value, PMI and escrow are required. All loans subject to credit approval and program guidelines.
Do I need to own land first?
No. The lot can be purchased as part of the same one-time-close construction loan, so land and build are financed together. If you already own your land, we'll structure it into the project. Either way, one closing covers it.
Can I finance just the land now and build later?
Yes — that's what the lot loan is for. Finance up to 80% of the lot (up to 10 acres, with intent to build your primary home), on a 10-year fixed term or a 15-year term with a 20-year payment (balloon). 680 minimum credit score, 43% max DTI, and your down payment can come from a gift. When you're ready to build, we'll structure the construction loan around your lot.
Can I use my own builder?
Yes — that's how this is designed to work. Your builder needs to be approved before we proceed, and approval typically takes 24–48 hours. Once approved, your builder creates their own draw schedule, so the build runs on their timeline, not a bank's template.
What are payments like during construction?
The construction period runs up to 12 months. During the build you pay interest only on the amount actually drawn, at your permanent loan's rate — funds are released in stages as work is completed. When the home is 100% complete, the loan converts immediately to permanent financing, with a rate float-down option at conversion. No second closing.
Is this only for primary residences? Where do you lend?
Yes — this construction program is for primary residences only, with no vacation homes or investment properties. I lend in 49 states, so the barndo you're planning almost anywhere in the U.S. can be financed here, subject to credit approval and program guidelines.
Justin Roth
Liberty Federal Credit Union | NMLS #470586
I help buyers finance custom barndominiums and barn-style homes across 49 states — one-time-close construction loans, competitive financing options that fit your budget, and local expertise from someone you can trust. You'll talk to me, not a call center.
📞 (727) 415-9960✉️ jroth@libertyfcu.org
Your vision. Our expertise.
Let's build your future. Fill out the form at the top of this page and I'll personally review your land, budget, and builder — then map out your next step.
Get Pre-Qualified →