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Sore and Tired 24/7
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Discussion Starter #1
Wondering what the best way to finance a barn at the best interest rate. My house is paid off, and I never had a bank mortgage on it, so I'm clueless when it comes to that stuff. I have an excellent credit score.
 

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Life=Short. Jeeps=Cool
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Are you on garage journal? They are my go to spot for things like this.

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Sore and Tired 24/7
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Discussion Starter #3
I'm not, I'll check it out though, thanks.
 

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Might be better to open up a home equity line of credit. Not sure how the rates are vs a traditional mortgage


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Gustafson
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I don't see why you couldn't take out a mortgage on your home for the value of building the barn. That would get you the best interest rate and you could always pay off early.

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Might be better to open up a home equity line of credit. Not sure how the rates are vs a traditional mortgage


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This is what I was going to say. We did a HELOC (home equity line of credit) to get rid of some debt and redo our patio. We did ours a while ago, but our rate is only 2.99%. This is probably the easiest and cheapest way to finance your barn.
 

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3,757 Posts
I would call

Caremy Snellenberger
Senior Mortgage Officer
| NMLS #771040, 771040

C (810) 334-9456
O 810-985-4551 x11104

619 Huron Ave
Port Huron, MI 48060






This guy is the guru of Rural Development loans, and it is not just for farms give him a call and explain what you are doing and he will find a way to get you building.






RBB
 

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My suggestion was also going to be a home equity loan. My house was given to my wife by her grandfather, so when we added onto it, we did a home equity loan. Bank was more than happy to sign you right up with no mortgage on the house and property.
 

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Yooper In Training
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Couple I found from a quick search



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There's always a ton of cool stuff to see on there and lots of great ideas, but the regular posters also seem to be arrogant as hell. It's like the pirate4x4 of garages. Even from scanning through those posts it's basically just "you're a fukking idiot if you do anything but pay cash for a hobby barn".

I'd agree that a home equity loan or HELOC is going to be the easiest/cheapest way to do it aside from cash up front. Home equity will be lower APR, but HELOC is nice in that you're only paying principle+interest on what you've actually spent. Home equity you take out the full chunk from the get-go and start paying the full value and interest immediately, even if it's just sitting in your account while you get your ducks in a row. But for a large mostly up-front expense like a barn, home equity likely makes more sense and costs you less.
 

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Low Range Drifter
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8,268 Posts
There's always a ton of cool stuff to see on there and lots of great ideas, but the regular posters also seem to be arrogant as hell. It's like the pirate4x4 of garages. Even from scanning through those posts it's basically just "you're a fukking idiot if you do anything but pay cash for a hobby barn".
Yeah, I scan through garage journal from time to time and see the same thing. It's also interesting to see the folks who collect old tools like they are baseball cards or something. At the same time, I've made a few good tool purchases based on what they've talked about.
 

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There is a federal loan option for home improvement, doesn’t matter what you do/want/ etc. I’ll ask my wife more about the specifics of it. I ran into issues trying to finanace my garage build because of how small my house is, so I had to get creative. Iirc it was $25k max, and the company I got it through could add an additional 10k loan if needed. I believe I got it through Huntington bank, only learned about it from a local pole barn dealer that offered financing. It was not tied to your mortgage, all I had to do was submit a plan, a local notary came out, took pics before the build, then after completion to make sure you spent it on what you said, and that was that. It was simple, little to no BS.
 
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