Horse Barn Financing Options For Good & Bad Credit

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How To Finance a Horse Barn

What is horse barn financing? <br>Horse barn financing is a term used for a variety of financing options used to pay for the construction of barns. Like most construction projects, well-built horse barns don’t come cheap. Fortunately for horse owners, there are several financing options that they can apply for to finance their construction project. These financing options are offered by traditional lenders such as banks or credit unions or by modern funding firms such as online lenders. Horse owners can use these loans to build barns such as:

  • Regular steel barns - This type of barn is built using steel columns that are sturdy and are less likely to experience wear and tear. With proper maintenance, barns that are constructed using a steel foundation are not prone to deterioration and are bound to last.
  • Pole barns - A pole barn uses “poles” or wooden beams as its main foundation to support the barn’s outer walls and the roof. Pole barns are known to be susceptible to pests, decay, and fire damage which can pose a risk to the safety of your horses.
  • Portable barns - Portable barns are understandably cheaper than regular barns and pole barns because of their size and intended function. Usually, portable barns are used to house only a few animals during harsh weather conditions.

How much does building a horse barn cost?

As with any construction project, the cost considerations when building a horse barn depends on the kind of barn you want to build, the size of the structure, and the type of materials you want to use. According to Buildings Guide, a traditionally constructed wooden barn will typically cost around $45 per square foot. On the other hand, prefabricated metal barns range from $7 to $25 per square foot. For instance, a 2-stall metal barn with a dimension of 30x40 will have an estimated cost of $11,500 while a 12-stall metal barn with a dimension of 40x100 will have an estimated cost of $29,900.

Note: Prefabricated metal means pre-engineered pieces of steel used as the skeleton or building blocks of a building. Prefab metal comes ready to be assembled and used as-is. 

How does horse barn financing work?

You’ve studied all of your financing options. You now have the land. You’ve researched the type of barn structure you need. Now what? If you don’t have much in savings, chances are you might need to apply for a loan to construct your barn. Financing for a horse barn works like most loans- you borrow a lump sum, you build your barn based on your plan and budget, and then pay your loan back in monthly installments. You can also apply for horse barn financing if you have a barn that needs to be renovated.

When considering horse barn financing, make sure to first establish how you are going to use your loan. It’s useful to have a concrete plan before applying for horse barn financing as most lenders would like to know the purpose of your loan as a basis for approval. After coming up with a plan, let’s now take a look at your options for horse barn financing.

How to finance a horse barn? What are my options for horse barn financing? 

Whether you’re adding new stables or widening your supply storage room, it’s important to familiarize yourself with the different options you have to be able to finance the construction of your barn. If you’re looking for different financing options in the market then you clicked the right article! Let’s talk about the different options you can consider.

  • Home Equity Lines of Credit (HELOCs) - According to Bankrate, HELOCs are perfect for financing a detached structure. Home equity lines of credit provide borrowers with a revolving credit that they can access, pay back, and then access again as needed. The great thing about HELOCs is that you make payments only on the amount that you take out, not the full amount available.
    • Pros
      • Pay only the amount you borrowed
      • Competitive interest rates
      • Interest paid can be tax-deductible
    • Cons
      • Your interest rate can fluctuate based on current market conditions (variable interest rate)
      • HELOCs require a collateral
      • Since the available credit is yours to draw, it can be risky for undisciplined borrowers
  • Personal loans - An increase in the number of online lenders has given horse owners a plethora of options to consider when it comes to funding their barn construction project. In some cases, a personal loan for home improvement may apply if the barn you want to build will sit on your property. The thing about personal loans is that the amount a borrower can qualify for depends on their overall creditworthiness. However, that does not mean a borrower with bad credit cannot apply for a personal loan. Online lenders are known to be more flexible and more lenient when it comes to qualifications.
    • Pros
      • No collateral needed
      • There are a lot of lenders to consider and choose from
      • Excellent credit is great, but not required
      • Quick review and approval process
    • Cons
      • Interest rates can be high
      • Beware of origination fees
      • Some personal loans may have prepayment penalties
  • Builder financing - Construction companies often partner with local and national lenders that can help you get the rates you need. Depending on the specifics of your barn construction project and your current financial situation, a construction company can help you connect with different lenders that offer loans that would best meet your barn financing needs.
    • Pros
      • Fast review and approval process
      • Flexible payment terms
      • Convenience
    • Cons
      • Interest rates can be high
      • Beware of hidden fees

Keep in mind that cost should be the least of your worries when constructing your barn. The safety of your horses and the sturdiness of your structure should always come first.

Do I need good credit to apply for horse barn financing?

It’s no secret that great credit can make your financial life much easier. A good credit score can mean low interest rates on loans and credit cards, greater chances of approval, better payment terms, and higher loan limits. Meanwhile, if you have bad credit, it’s important to understand that your financing options may be limited. Having bad credit also means that your interest rates may be higher compared to people with good credit and your loan amounts may be much smaller.

How do I apply for horse barn financing?

Applying for horse barn financing is like applying for other types of loans. As the borrower, you need to prove that you are worthy to be granted a loan based on your current financial situation. As with most loans, the best course of action to take is to study all the options available in the market. Shopping around allows you to familiarize yourself with what banks, credit unions, and online lenders are offering to help you identify which deal makes the most financial sense.

If you need a more convenient way to study your options, check out PrimeRates. PrimeRates gives prospective borrowers access to personalized loan offers through a quick and simple pre-qualification process. After pre-qualifying for several loans, you can now assess which offer would best meet your needs. Here’s how it works:

  • Apply in minutes - PrimeRates’ simple pre-qualification process takes less than two minutes to complete and would NOT have an impact on your credit score.
  • Select your loan offer - After the pre-qualification process, you now have the option compare monthly payments, APRs, and loan amounts from several loans that you have qualified for
  • Finalize your loan - Finalize your loan offer with your chosen lender and submit additional verification requirements such as IDs and other relevant financial documents
  • Wait for your funds - In some cases, you can even receive your funds in as little as one business day!


It’s common knowledge that shopping around is absolutely essential if you want to get a great deal. It’s also best to keep in mind the different factors that would affect the total cost of your barn construction project. Factors like size, construction materials, and the type of barn you would want to construct would all affect your total cost. At the end of the day, only you can gauge the financing option that makes the most sense based on your current financial situation.

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