Who to contact
Property tax & farm valuation
Your county appraisal district sets property values and handles agricultural (open-space) valuation applications; the county tax office collects the tax.
Insurance help
The Texas Department of Insurance helps with insurance questions and complaints, and handles coastal windstorm insurance questions.
The details
General information, not financial or tax advice. We don't list interest rates, because they change daily. Checked 7 November 2026.
Texas lenders that say they finance barndominiums
| Lender | Area | What its website says |
|---|---|---|
| Capital Farm Credit | "Serving all of Texas" | Finances barndominiums and metal homes; one-time close combining construction and permanent loan; land plus build; interest-only for up to 12 months during construction; permanent mortgage "usually" 30 years |
| Texas Farm Credit | Branches including Robstown, Athens, Bandera, Tyler, Weslaco | "Offers financing for barndominiums"; one-close construction-to-permanent loans; 12-month interest-only construction period; terms up to 30 years |
| Legacy Ag Credit | Northeast Texas | A dedicated barndominium loan page; construction loans; no terms stated |
| Plains Land Bank | Texas Panhandle | Finances barndominiums among rural homes; construction loans on land you buy or own |
None of these lenders publish a down payment requirement, so ask. Texas Farm Credit and Legacy Ag Credit have announced plans to merge (target around November 2027), so their products may change. Other Farm Credit lenders such as AgTexas offer one-time-close construction loans but don't mention barndominiums on their sites.
How a barndo construction loan usually works
- One-time close: one loan covers construction and then converts to a regular mortgage, so you close once.
- Draws: the lender pays the builder in stages as work is done; during construction you typically pay interest only on what's been drawn.
- Land: some lenders finance land and construction together, or let you use land you already own as part of the equity.
- Appraisal: lenders need the finished home to appraise. Ask how the lender values barndominiums where few have sold nearby.
- What the lender will want: plans, a builder contract with a detailed budget, and the builder's credentials. A builder with barndo experience makes this easier.
Property tax and agricultural valuation
Texas has no state property tax. Your county appraisal district values the property each January 1, and local taxing units set rates.
- Agricultural ("1-d-1") valuation taxes qualifying land on what it can produce, not its market value. It needs ag use in 5 of the past 7 years. It applies to land and things like fences and stock tanks, never to buildings. Your new home is appraised at market value.
- The homesite: appraisal districts usually value the land under and around a home at market value rather than ag value. Ask your appraisal district how much land it will treat as the homesite.
- Rollback tax: if land stops being used for agriculture, you may owe the difference between ag and market value for the previous 3 years. Building a homestead doesn't by itself trigger rollback, but the Comptroller's guidance says rollback is avoided only while you keep living there; in effect, plan to occupy it for three years.
- Homestead exemption: once it's your home, school districts must exempt $140,000 of its value (Texas Tax Code §11.13(b), raised from $100,000 for tax year 2025). Other exemptions may apply.
Insurance
- Rural homes: the Texas Department of Insurance lists distance to fire protection as a pricing factor, with lower premiums near fire stations. An impact-resistant roof may earn a discount. A "farm and ranch" policy is a separate type for homes on working land.
- Detached shops and barns fall under "other structures" coverage, which has its own limit. Check it if your barndo has a big shop.
- Flood is excluded from standard policies, and flood policies usually have a 30-day wait.
- On the coast: TWIA is a last-resort wind and hail insurer and needs windstorm certification. See windstorm rules.
- Metal homes: we found no official Texas guidance specific to barndominiums. Get quotes before you finalize your design, and ask how the frame and siding affect the price.
Sources: lender websites (linked); Texas Comptroller, Manual for the Appraisal of Agricultural Land (Oct 2024) and special valuation flyer (Nov 2025); Comptroller exemptions page; Texas Department of Insurance consumer guides (updated 2025–2026). Report an error