After 14 years of military service, I’m finally fulfilling my dream of building a homestead where we can live a slower paced life. However, the process was not easy and I had to pivot from my original plan, of building a barndominium, to a manufactured home. I’m sharing why I made the switch and what it will cost me.
Finding the Right Land
First, I needed to decide where we would be building a homestead. I did not grow up on a farm or anything similar. So I had no idea what to look for. But my experience, as an out-of-state real estate investor, gave me the skills I needed.
I joined a Facebook group in that area, that was specific to land buying. This is where I found a 10 acre plot. It was raw land but it did have utilities at the main road. However, I would have to pull them all the way back. Via pictures, videos and FaceTime, I “walked” the lot and decided to purchase, without ever setting foot in it. The purchase price was $145,000.
Financing Raw Land Isn’t Easy
sNow let me tell you something, land loans are no joke. Since there is no property on it, it can be difficult to finance. When you do find a lender, they require higher down payments, shorter terms, and higher interest rates. My piece of advice is to find local banks or lenders, because they will be familiar with land loans. Also, you may be able to have the seller finance it to you.
Instead of draining our savings (we needed that money for fertility treatments), I sold my paid-off 2017 Lexus to cover the down payment. Was it humbling? Yeah. Worth it? Every penny.
Choosing Our Home: Barndo vs Manufactured
At first, I wanted to build a barndominium. loved the open layouts and rustic vibes. However, when I saw those quotes? It was an eye-opener on how much building a homestead can really cost. It was $189K for just the shell. Nearly half a million for a full build. This would leave us with almost a $4,000 mortgage. I am trying to gain financial freedom and this would not help me.
Therefore, we had to find other options. We came across manufactured homes. I’ll admit, I had some old-school ideas about manufactured homes. But after doing the research, we realized they’re not the trailer homes of the past. They’re energy-efficient, quick to install, and budget-friendly. And they forced us to be intentional about space.
Manufactured Home Costs:
- Home (finished with appliances/drywall): $129,900
- Site Prep, Utilities, Septic: $36,000
- Gravel road: $12,000
- Total Build Cost: $177,900
The Final Price Tag & Monthly Mortgage
We decided to finance the build with a one-time close construction loan. This meant that we wouldn’t have to get two separate loans, one for construction and one to lump everything together (we still had the land loan). This loan would include the build and also payoff our land loan. This would leave us with a $2,700/month mortgage payment. This is way less than the $4,000 mortgage on the barndominium.
Building a Homestead and Financial Freedom
Now we are not just building a homestead, but also have set ourselves up to reach financial freedom faster. Reducing our expenses, along with my rental property income, Post 9/11 GI Bill, and other income, we can start pulling back from working hard. We’re building the life we actually want, without debt drowning us or a job we hate.
This journey isn’t about impressing anyone. It’s about living differently, intentionally, and sustainably. We gave up big houses and status symbols for peace and purpose. We didn’t just buy land, we are claiming our freedom.
Want to hear the full story? Listen to the episode!
