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Couldnt get a loan for our barn... now what

Around The Farm
#1

So my husband and I bought our dream property last winter and it is definitely not turn key. But it did have a house on it with 20 acres. Since we have moved in, we have cleared 8 acres. seeded and fenced the entrance, and 2 pastures (6 acres) and are slowly clearing the other portions and fencing. We have a dry lot to keep the horses off the pastures and let the grass grow.

When we bought the house, we were advised to take our down payment money (30%) and use it toward building our barn and improvements on the property, so we got an VA loan since we qualified.

Come to find out with the market crash, we can not find any financial insitution to give us a short term loan of $50k to build our barn (and I’m not talking about the creme de la creme) I’m talking about a basic 4 stall barn with a wash stall and tack room. I have done my homework and found the best and most cost effective builder to go with. Have 10k to put and need a loan for 50k to finish everything. We used the other 20 to clear land, fence and seed the cleared area.

So what do I do now that I’m told I can’t build my barn because we don’t have enough of the mortgage paid off? Where can I go to get a loan (without paying a 12% rate?) I think that it sucks that we can’t find any financial institution to loan us money (my husband and I both work and would not be overstretched to add a second loan). We only have a mortgage and have a tractor financed (everything else we own is either paid in full or paid with cash). Am I unreasonable in my thinking… What are your thoughts? Makes me made that I can’t build something to shelter my horses in the storm (last week two trees were struck by lightening in the dry lot where they were. Luckily the horses were boarded elsewhere for the week.

I literally put the horses on the trailer when a bad storm hits… don’t laugh…:smiley:

#2

You can EASILY build a four stall barn for $10K if you are willing to do a lot of the work yourself! I built my 8 stall barn with a grooming stall for about $26,000 and our last barn we built a 7 stall barn for quite a bit less (but this time I wanted stall “fronts” with sliding doors instead of building dutch doors). You can see some of my barn here:

http://good-times.webshots.com/album/561770915UlxTva
http://good-times.webshots.com/album/561770915UlxTva

The frame is from Carolina Carports, they put it up for us in one day, it includes the roof, a back “half wall” of siding and a 10 x 20 enclosed feed room with a rollup door, window and a walk in door. THe stall fronts and mats (my price INCLUDES both of these as well as the wood, screenings for the base and leveling the base and electric). It is hard work BUT very rewarding. And being in SC you have the same hot humid weather we have here in eastern NC and a barn like this is incredibly well insulated. On the back of the stalls, upper halfs have drop down windows we built that stay open in hot weather and can be closed in winter or bad rains. It can be done!!

1 Like
#3

what about taking the 10 that you have and building a nice roomy run in that you can close off? Something secure, weather-proof, that will meet your needs till something comes together for a barn.

It wouldn’t be money lost

I agree too that you can build a pretty nice barn without having to spend $50K. My friend just spent $9K and outfitted an empty building into a barn for her horses. It’s just 2 stalls, a tackroom, hay and shaving storage and a workroom for her hubby, but its pretty nice.

#4

What about taking you $10K and having a Pole barn put up. Windows etc.
You can rough in electric an water as you can afford.
Then you can keep your hay n feed dry, partion off a area as a run in until you can build you stalls.
1 stall @ a time, the fronts can be bought as kits from places like Ramm or you may find someone locally who would make your grills and cut the lumber to fit?
Concrete pad for wash stall n feed room could be done by you w/ rented mixer on site.
Sounds like you guys are hard workers. This way you can custom it as you go along.
I didn’t get my real barns until I was almost 50!! I made do w/ so much higly pigly until this last farm purchase.

#5

Or maybe consider a pre-fab, Amish built barn like from Horizon Structures

We’ve toured these barns and they are solidly built! Just do the site prep work yourself, have the pros run water & electric. Then the folks from HS deliver your barn, hook everything up and you’re in business!

I do believe they do financing too, so it couldn’t hurt to ask.

#6

We built a 48 x 48 barn ourselves for the cost of materials…maybe $10,000 over time. It’s not hard…it’s just time consuming. What we did was built it in stages…and since it is a pole building, you can do that. We first built what would later become an overhang/loafing area, covered that and gave the horses shelter that first winter. After that we put in more poles, then beams and found some used trusses. We had a barn raising party and got some neighbors and friends together and got the trusses up and the barn roof sheathed. We fed them a BBQ pig for enticement to come. It turned out to be a great time.

I did some bookwork for a roofer and in turn he shingled my roof for me. Then I found some moonlighting carpenters and they put up the siding for me. Finally, I did the stalls on the inside myself in pine boards…very attractive. It took us a couple of years from start to finish but we did it on a tight budget with no loan. That same barn would have cost us $50,000 or more to build if we had hired a contractor.

#7

[QUOTE=unclewiggly;4315819]
What about taking you $10K and having a Pole barn put up. Windows etc.
You can rough in electric an water as you can afford.
Then you can keep your hay n feed dry, partion off a area as a run in until you can build you stalls.
1 stall @ a time, the fronts can be bought as kits from places like Ramm or you may find someone locally who would make your grills and cut the lumber to fit?
Concrete pad for wash stall n feed room could be done by you w/ rented mixer on site.
Sounds like you guys are hard workers. This way you can custom it as you go along.
I didn’t get my real barns until I was almost 50!! I made do w/ so much higly pigly until this last farm purchase.[/QUOTE]

I wanted a pole barn but between the 3 quotes we got ranging from 60k to 80k, I decided to go with the barn that I liked the most and was 60k (a Barn Master). My husband and I are willing to do the work (ok, I like to design and organize and can do basic stuff) but my husband can do most things and has offered to build the barn/ run in shed. I just don’t know where to start without just getting the builder to do it.

It is funny that you mention a barn raising because both of our dads (who are horse people) want to have a “barn raising” party. Which I am all for. We have discussed getting a run in shed 12x30 to have 2 stalls and a dry area for my tack/ feed but would love a place to get out of the weather and be able to do stuff if it is cold or raining. I am using my trailer for a take room…haha.

So is the best start to have a builder do the frame (poles/ sides/ roof) and have us do the rest (stalls/ feed/wash/ aisle/ electric/water, etc.?)

#8

Can you wait a bit?

Can you wait a few months and try again? The credit markets and banks are in such turmoil right now, that it is almost impossible to get loans for anything right now and banks don’t understand barns all that well.

If you can wait even 3 months (6-9 would be better), you might find the banks have shaken things out a bit more and you might qualify.

Best of luck! :slight_smile:

#9

You can buy blueprints or kits that have instructions. If you are willing to do the work, but just do not know how to start, buy something that tells you how to build a barn for less then $100. A book? A manual?

A kit barn would be about half as much as hiring a builder?

Is 12% really that bad for a short term loan? Could you pay it off fast?

#10

It really is EASY to do if you have the shell put up. Call Carolina Carports, I can tell you more if you wish, I told them the length, height, colors I wanted and bingo a week later there it was just prepare ground to be level and put down something for base ( we did about a foot of screenings). It will cost you probably about $6000 or so for the shell. That will be the expensive part. Then you can construct stalls as you have the time and funds. Look at my photos they are pretty instructive as we took them while building. Used rough cut treated lumber, sunk the corner posts in, put up the walls and bought the fronts, cut lumber and put in the steel frames of the stall fronts. lay some mats and voila a stall!

#11

Have you tried going through a credit union?

I feel your pain–we went through the same thing. 3 months of being dragged along for a 100K loan, only to be told that we’d be charged 8K in closing costs (this was for a short-term loan!!).
Umno.

#12

Contact your Extension Office. First they can give you the contact information for your local Farm Credit office. They specialize in stuff like this. If your credit is good and income stable you should have no problems.

Second, Extension also has lots of information on ag structures appropriate to your area. And they are at no cost.

But a question: If by you in “Aiken” and that’s Aiken, SC why do you need a barn? Some run in sheds, a covered tack up area, and a CONEX box for a tack room is all you really need. These can be had for a couple of Grand, tops. Then save your money and build when you’ve got a better equity position.

I’ve long been of the opinion that barns are solely for the convienience of humans in the South. They are just places of potential injury and disease for horses.

Good luck in your quest.

G.

#13

My husband thinks that 12% is a high (and he thinks too high) when our mortgage is 5%. He won’t even consider it. The barn builder tried to help us as well and found us one for 7% but my husband doesn’t think it is low enough either. And unfortunately, i didn’t pay too much attention in my financial class in college 3 years ago- and somehow still got an A.

I’ve been looking at dover and Bitof Britian, what books do you suggest? There wasn’t any on the site, so I’m trying Amazon next…

Shawnee_Acres, I did look at your pics and they look great!!! I’m so jealous. Where do I start?

I really don’t want to wait on the barn b/c of the many many electrical storms we get and I have lost 2 horses to lightening in the past. Plus my horse is a hard keeper and would like to get him out of the cold/ rain for the winter (I know the south has a mild winter- but it still gets nasty at times).

#14

My husband thinks that 12% is a high (and he thinks too high) when our mortgage is 5%. He won’t even consider it. The barn builder tried to help us as well and found us one for 7% but my husband doesn’t think it is low enough either. And unfortunately, i didn’t pay too much attention in my financial class in college 3 years ago- and somehow still got an A.

I’ve been looking at dover and Bitof Britian, what books do you suggest? There wasn’t any on the site, so I’m trying Amazon next…

Shawnee_Acres, I did look at your pics and they look great!!! I’m so jealous. Where do I start?

I really don’t want to wait on the barn b/c of the many many electrical storms we get and I have lost 2 horses to lightening in the past. Plus my horse is a hard keeper and would like to get him out of the cold/ rain for the winter (I know the south has a mild winter- but it still gets nasty at times).

#15

It looks like Amazon has lots of books. Even ebay has kits and plans for sale. Here is one I grabbed off a quick google search http://www.easybuildings.com

12% and 7% is higher then a mortgage, but its really choice between paying someone else for their money or using your own time. I’d rather pay someone else 7% then build a barn, but I think you can build a barn for much less then $60K if you guys are handy and energetic.

There is a thread form a few days ago all about building a barn in Aiken and things to do and not do and good ideas and suggestions. Its called “show me your barns” Fivehorses is building a barn right now in Aiken. Go out and watch how they do it!

#16

[QUOTE=ChocoMare;4315850]
Or maybe consider a pre-fab, Amish built barn like from Horizon Structures

We’ve toured these barns and they are solidly built! Just do the site prep work yourself, have the pros run water & electric. Then the folks from HS deliver your barn, hook everything up and you’re in business!

I do believe they do financing too, so it couldn’t hurt to ask.[/QUOTE]

I was going to suggest Horizon or Eberly, which does similar barns. http://www.eberlybarns.net/

Why not just put up a simple shedrow with 4 stalls? It can be used as a hay barn later should you ever decide to build a center aisle barn, and the shed rows can actually be picked up and moved elsewhere on the property (or to a new property if you ever sell). They really are quite nice and you can paint them and put a pretty cupola on them to dress them up. My vet has several all kitted out and they look great. I am about to build a 3-stall one to put alongside my center aisle barn because we need more stalls.

Or, for reasonably priced center aisle barns, check out Uncle Howard’s kit barns. A few years ago a poster on ultimatedressage.com built an Uncle Howard’s barn that was gorgeous. www.unclehowards.com

And they are having a special right now with very good prices.

http://www.unclehowards.com/outlawbarnsale.aspx

#17

[QUOTE=shawneeAcres;4315968]
It really is EASY to do if you have the shell put up. Call Carolina Carports, I can tell you more if you wish, I told them the length, height, colors I wanted and bingo a week later there it was just prepare ground to be level and put down something for base ( we did about a foot of screenings). It will cost you probably about $6000 or so for the shell. That will be the expensive part. Then you can construct stalls as you have the time and funds. Look at my photos they are pretty instructive as we took them while building. Used rough cut treated lumber, sunk the corner posts in, put up the walls and bought the fronts, cut lumber and put in the steel frames of the stall fronts. lay some mats and voila a stall![/QUOTE]

I saw a barn like Shawnee’s in Louisiana; it was really nice in that climate because the design was so open and airy - very healthy for the horses.

#18

[QUOTE=TXnGA;4316082]
My husband thinks that 12% is a high (and he thinks too high) when our mortgage is 5%. He won’t even consider it. The barn builder tried to help us as well and found us one for 7% but my husband doesn’t think it is low enough either. And unfortunately, i didn’t pay too much attention in my financial class in college 3 years ago- and somehow still got an A.

I’ve been looking at dover and Bitof Britian, what books do you suggest? There wasn’t any on the site, so I’m trying Amazon next…

Shawnee_Acres, I did look at your pics and they look great!!! I’m so jealous. Where do I start?

I really don’t want to wait on the barn b/c of the many many electrical storms we get and I have lost 2 horses to lightening in the past. Plus my horse is a hard keeper and would like to get him out of the cold/ rain for the winter (I know the south has a mild winter- but it still gets nasty at times).[/QUOTE]

This is a second mortgage? Second mortgages usually carry a higher rate because they are higher risk. For reference, at the height of the market - before the credit crisis - it was typical to see rates that were 3 or more percent higher on a second mortgage than a first mortgage. I would doubt anyone could do much better than 7% on a second mortgage at any time in at least the last 5 years.

I think you can do the barn for less than 60K (especially given that a lot of contractors are desperate for work right now), or do it in stages, and borrow less.

#19

Holy.crap. 50k for a “basic 4 stall barn”??? That’s nuts. Maybe a nice, custome built barn sure… but I’d rather have something than nothing if I couldn’t get a loan for it. We are doing a basic (slightly accessorized) barn for 12k. That’s the 24x40 pole barn, posts set for stalls (we’ll be building the stalls ourselves since I was picky and knew it would be cheaper), sliding door, people door, 4 dutch doors, cupola, and TWO 8’x24’ overhangs over the door. The overhangs were 2k so without them it would have been an easy 10k so there you have it. Finishing the inside will be fairly simple. We’ll just do a little here and there.

#20

I agree with the other posters… think short term and get the shelter issue worked out by building something that can be completed in stages OR expanded upon easily.

We built my barn ourselves over the course of 4 months. We spent $12,000 and put up a 24 x 36 barn with three 12 x 12 stalls (I only use two, the third is for hay) and a 12 x 12 tackroom. This barn does have a loft (we have small acreage and had to do it this way due to storage). It is a pole barn with a metal roof and we are quite proud of our work! :yes:

I did not want a shed row, but if finances were any tighter I would have built one that could have been covered to someday include a hallway and another row of stalls.

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