So you are looking for pole barn financing near me trying to find a way to finance your pole barn? Don’t worry! We are here to help! Pole barns are one of the most popular ways to create extra space on a plot of land. No matter what your use is, a pole barn is almost always a cost effective option! However, that does not mean pole barns are not an investment. They are entire buildings after all. This is why many people seek out pole barn financing options to fund their new building.
What are Pole Barns?
Pole barns, also known as post frame structures, originated during the great depression, where farmers did not have the money to purchase their own buildings, so they fashioned barns out of old telephone poles. The design turned out to be extremely effective and cost efficient, which makes it one of the most popular agricultural building styles today.
How Much Do Pole Barns Cost?
The cost will vary from building to building depending on size, material, builder, and any extra features you would want to add. Usually when building a pole barn, buildings that are built for barns are much less expensive than buildings that are built for homes or businesses. The cost varies so widely it is hard to pinpoint. The smallest projects can be as low as $4,000 with large ones spanning upwards of $25,000.
What is Pole Barn Financing
Pole barn financing is simply a type of loan which spreads your cost out over a period of time, allowing you to more easily afford your pole barn build. For example, if you do not have enough cash on hand to pay for a $15,000 pole barn in full, you can put a down payment of $5,000 down, and take out a loan for the remaining $10,000 which you will be able to pay over time.
How does it work?
Pole barn financing is very similar to that of any other type of loan. One of the most important things is to find a lender that is reputable and will work best for you. Before you start departing financing however, make sure to talk with your builder and have the full quote with all costs laid out in a way that is easy to understand. Not all lenders will require this documentation, but it is always a good idea to know exactly how much you need to be borrowing.
The Best Way to Finance a Pole Barn
Every option for financing has pros and cons. You will have to look at your situation and analyze what is right for you. Here are some of the most common pole barn financing options:
Pay in Full
Paying in full up-front with cash will always be the most cost-effective way to fund a building, however, it is not the best option for everyone.
Advantages of Paying in Cash
- No interest. You only pay what you owe
- No lenders or permission required
Disadvantages of Paying in Cash
- You might be out a lot of money with no fallback
- You might not have enough money to pay in full.
Personal Loan
If your credit score is decent then you might find a personal loan to be your best option. Personal loans are usually lent based on your credit score because they are typically unsecured loans, meaning they cannot go after your home or vehicle in the event you cannot pay.
Advantages of a Personal Loan
- Easy to acquire – Most won’t need to see your building plans. Simply apply online and get confirmation within a few days!
- If your credit score is good, you can get a good interest rate – This might make this option the most affordable.
- No penalties for paying early – This makes these kinds of loans much more flexible, because you can choose a longer length, and pay down the monthly payment if necessary.
Disadvantages of a Personal Loan
- If your credit score is not the greatest, you may get stuck with a high interest rate
- If you use collateral, you risk losing that asset
- Finding loans for over $25,000 is very hard
Credit Cards
Credit cards can be a great option, but caution is definitely key here.
If you have many cards with low amounts on them, you can spread the cost out, and even apply and take advantage of 0% interest cards.
Keep in mind that this is NOT a good option for everyone. Credit cards can sit for a long time and rake up interest. If you do not trust yourself to pay them, every single money. Do not try this. You could potentially end up in a lot of debt, you can’t seem to pay off.
Advantages of Credit Cards
- If you have lots of credit, you can immediately start work because you no longer have to seek financing elsewhere.
- If your car has low interest rates, or 0% terms, which can save you money.
Cons of Using Credit Cards
- Credit cards will have high interest rates a lot of the time. You can easily end up paying more.
- Even with 0% interest if you fail to pay off the barn within the term limit your bills may rise exponentially.
- It can be easy to struggle to pay the credit cards off. If you aren’t disciplined this can create a lot of debt problems down the line.
Have more Questions?
If you have any more questions regarding pole barn financing. Contact the pole barn experts at Tru-Bilt buildings today! We would be happy to answer any questions you may have, or help you find a financing option that works for you!