*Our* pole barn house deal in No Idaho is falling apart...

[mom25kiddles]

We have been struggling to get financed on a *pole barn turned home* we want in North Idaho but it seems as if it's not going to go. Our finances are fine, credit is excellent, down payment is there, no debt other than our home turned rental property in So Cal... but we want to move in to a pole barn and there isn't a bank out there who wants to finance us.

So... questions for those of you who currently live in a home like this. Did you purchase your home or build yourself? Did you have difficulty w/ financing or pay cash? Are you happy and would you do it again? Are there a lot of *cons* to a home such as this that we aren't considering but the banks are? We can do a couple things for financing... land loan w/ a larger down, slightly higher interest or a construction loan to complete the 80% completed interior at 7 1/2% interest for 1 year and then have to refinance to a conventional. So... the financing is doable, kind of... but we are concerned that if we ever care to sell, our resale value will be nil based on the fact that we would have to have a cash buyer or someone willing to do this creative type financing.

On the other hand... we could just go back to Priest River or Reload Road, buy the beautiful land that we wanted initially and live in the travel trailer!!! It doesn't sound like a horrible option... until you consider the S N O W!!!!

Thanks for any input!! It is very much appreciated!!!!

Carmen

[Batt]

The problem is that you have to have X number of comparables within Y number of miles sold within the last Z months. Otherwise they will not lend the money, too many unknowns. Also we found on our place that since the wall were sheathed in metal we were rated the same as a mobile home. When we did the add-on we enclosed the living are in vinyl siding--they loved it. HTH

[mom25kiddles]

Thank you, Adron... you are singing the same song the bankers are singing... nice to know that everyone is in *tune* and we are understanding the issues correctly!!! This particular home is sided upper floor in metal and lower floor in vinyl... but it still looks very much like a pole barn, small windows, plain metal doors, etc... The banks have said that in order to convert a construction loan to a conventional, we would need to have a front porch, wood siding, etc. in order to give it more comparables for the appraisal. Everyone just seems so *iffy* on everything... scares us!!!

Rose ~ Yes, Priest River is our very favorite area!!! We were trying to stay close to my mother (in Careywood) and grandmother (in Cocollala)... Priest River is about an hour away... but WAY more affordable than Careywood. We would love a log home!!!!! There would be a few years in a travel trailer before that would happen... but if we build, log is definitely our first choice!!!

Carmen

[Sawmill Jim]

Can you get a loan to build a barn ?? Budget your money where you can finish it the way you want after you get what you want ?? Garage builders some even finance . Just tell me what the rules are i'll make it work

[mom25kiddles]

Jim ~ Unfortunately, the banks are not wanting to deal with this home much at all 1. because it is a pole barn and they don't have comparables to work with and 2. because it isn't finished. We have the funds available to finish it, but were certainly planning on taking more than a year. Taking a construction loan, we would lose all our *sweat equity* and have to use contractors. We *do* need to build a barn as soon as we close escrow, if we ever close escrow, because there are no outbuildings on the property and we need somewhere for the goats!!

Thanks for offering your ingenuity... my husband is just like that... typically, all he needs is some time to ponder the situation, look at the rules and regs and then figure out how to work it... and he usually does!!!

Reminds me of that thread in Countryside Families a few days ago, I think it was titled *I Love Men* or some such... pics of men doing what they do... had us rolling!!

Carmen

[MN Gardener]

Around here only small banks will finance these types of properties. If you do need / want to sell you will have problems because whomever goes to buy it will have the same problems you are. Unless you are planning on living there forever I would seriously reconsider the property. Can the bank have to property appraised as raw land and if so, will it appraise high enough for you to do what you want with it? Other then a CFD, that is the only financing I can think of.

[seedspreader]

Most banks wouldn't touch a Pole building with a (pardon the pun) 10 foot pole.

Proper foundations for the house, codes and resale value MATTER to banks who are investing in your home.

Everyone I know who did a pole home, built it themselves with cash or home equity loans on OTHER homes.

Be careful because if you think you may EVER want to sell this home, others won't be able to finance it either. Which may not be a big deal, but something to consider.

[WildernesFamily]

Sorry mom25kiddles, we faced the same thing when we were looking for a place to buy.

Same thing for Amish homes that have had all the plumbing and electric removed... some really beautiful farms, but the banks simply won't finance them because they aren't in "livable" condition (according to the bank, anyway.)

I hope you find a solution, or else another wonderful property to call home.

[ronbre]

try a new approach..ask to buy land with pole barn on it..not house..and then move in.

[mom25kiddles]

Ronbre ~

Great minds and all that... We did try for a straight land loan. Unfortunately, the *barn* is too much of a liveable residence to be considered for a land loan... crazy, isn't it?!

Decision day is today... we have to decide if we go further with the *creative* financing they have offered us... unfortunately, that creativity will cost us many thousands more than we were planning to spend. Not that we don't feel the property and home is ultimately worth the extra dollars... we just aren't sure that it is the right home for us and that we should spend the extra dollars that we had not alloted for this. Life has certainly been an adventure up to this point, boy howdy... and so many paths have been taken that we would never have imagined ourselves taking. We can't help but think about being *locked in* to this property by simply having a home that is not marketable by comparisons... limits the possibilities for the future, in our mind. And based on many of the responses here, it sounds like the problems we are facing are not uncommon.


Carmen

[Veronica]

We live in a house that was originally a barn. But it wasn't a pole barn - it was built at the turn of the century and converted in the 80's. I'm not sure of how the original owner financed the house - I know he did build two other houses on the land and then sell them off - so maybe that's how he did it. We had no problem getting financing but that was about 10 years ago.

[lmrose]

I am amazed at the different "houses" folks can live in the USA! Here in Nova Scotia there are so many building codes it is almost impossible for the average person to build or renovate even an old house. We live without insurance because it would be impossible to bring our old 1829 house up to the modern building code which the insurance companies would demand.

People aren't allowed to live in travel trailers, or buses or mobile homes unless they are on a permanent foundation. We can't even build a small house on our farm without subdividing and putting in a well and septic and building according to code.

We did all our own electrical and plumbing but that is out lawed now too. If we were younger we would move but atleast we got established here before there were so many laws. We can't build on as that would give the inspectors the right to inspect our whole house and make demands. So we fix the house on the inside and say nothing. Even our kitchen stove isn't considered legal by the insurance company because it is old. However it is in excelent condition and perfectly safe.

So be glad if you live in a place where you can live in a pole barn, travel trailer or mobile until you can do something different. Not everyone has the money to buy a ready made home or build to code.

[mom25kiddles]

lmrose ~

Thank you for a fresh perspective!! We really do forget sometimes just how fortunate we are to have choices and freedoms. I'm sorry to read about how your building codes have made it impossible to be insured and make the improvements you want... what a sad statement on the local governments. Thanks again for helping me *keep it real* and not get caught up in the *poor me's*!!

Carmen

[hotzcatz]

Can you get one of those rural loans? The property for those isn't so restrictive, I think. Otherwise, check out private lenders or a line of equity from your existing house. Will the sellers finance? If they can carry the note, they will end up with a lot more money than if they sell for cash.

[just_sawing]

Since I saw Patterns for barns I have seen this. I tell people up front that you save money by building a barn then converting it to a house but when you sell it it is a barn. That is the down side of barn living. I would suggest that the people selling you the barn either sell you the place under a land contract or as a barn unimproved. You can purchase the barn contents (IE HOUSE) separately under a personnel loan to them.
Land = X-House/barn(y)
Peronnal Loan to owner =Y