Thinking about buying land, building a cabin, or finishing a barndominium in Overton County? Financing these properties works differently than a standard home loan, and local rules can change your path. You want clear steps, real options, and fewer surprises. In this guide, you’ll learn how lenders look at land and nontraditional homes here, which loan types to consider, and how to get your paperwork ready so you can move forward with confidence. Let’s dive in.
What makes Overton County unique
Permits and codes outside Livingston
Outside the Livingston city limits, Overton County does not require county building permits and does not enforce countywide building codes or zoning. Lenders and insurers will ask how the structure was built and what documentation exists, so plan to show inspections, engineering letters, or contractor warranties. Always verify whether a property sits inside municipal limits and what rules apply using the county’s official guidance on permits and zoning. You can review the county’s statement on permits and codes on the Overton County site.
- See the county’s permits and zoning information on the Overton County website: county permits and zoning overview.
Taxes and assessments basics
The Assessor appraises property and applies Tennessee’s statutory assessment percentages, while the County Commission sets tax rates. Residential and farm property is typically assessed at a set percentage of appraised value. For current assessment practices or to confirm a parcel’s status, contact the Assessor’s office using the county page. Learn more at the Overton County Assessor information page.
Flood and insurance checks
Flood zones affect loan approval, insurance requirements, and cost. Before you make an offer, look up the parcel in FEMA’s Map Service Center to see its Flood Insurance Rate Map designation. Start with the FEMA Map Service Center.
Financing options at a glance
Vacant land and lot loans
Land loans often require larger down payments and shorter terms than a standard mortgage. Many lenders want 15 to 50 percent down, with higher rates on raw land and somewhat better terms on improved lots with utilities and road access. If a bank land loan is tough to secure, you can explore seller financing, a HELOC on your current home, or ag-focused lenders. See typical lender practices in Bankrate’s overview of land loans.
Construction-to-permanent loans
A single-close construction-to-permanent loan lets you close once, then convert to a regular mortgage when the build is complete. Lenders usually require detailed plans, a fixed-price contract with a licensed builder, a line-item budget, and a realistic timeline. During construction, many loans have interest-only payments on draw amounts. For rules on single-close options, review Fannie Mae’s construction-to-permanent guidance. FHA also offers an “One-Time Close” construction loan through participating lenders.
USDA Rural Development loans
USDA’s Single-Family Guaranteed program can offer up to 100 percent financing for qualified borrowers in eligible rural areas. Much of Overton County may be eligible, but every address must be confirmed. Learn about the program on the USDA Rural Development Single-Family Guaranteed page and verify an address in the USDA eligibility tool.
Farm Credit and local lenders
Farm Credit associations understand rural land, farm improvements, cabins, and barndominiums. They often finance land and construction for properties that need a more flexible approach. Explore options and product types through Farm Credit Mid‑America, then compare with trusted community banks and credit unions.
Appraisal and underwriting realities
Barndominiums and cabins need the right comps
Unique property types can be harder to appraise if nearby comparable sales are limited. Lenders may ask for an appraiser experienced in rural or special-purpose properties and could adjust loan-to-value if comps are thin. These nuances are common, as explained in this overview on appraising barndominiums.
Septic, wells, and power are critical
A lender will want proof your site can support a septic system and has a path to water and power. In Tennessee, septic systems require state approval and inspections through TDEC. Check application steps, timelines, and fees on the TDEC septic permit page.
Owner-builder expectations
Many lenders restrict owner-builder projects to licensed contractors or borrowers with documented experience. Expect higher down payments, more documentation, or supervision requirements if you plan to act as your own general contractor.
Flood zones and insurability
If FEMA maps show your parcel in a special flood hazard area, your lender will require flood insurance. Some insurers are cautious with non-standard structures, so check insurability early. Confirm the property’s status in the FEMA Map Service Center.
Step-by-step plan to get approved
1) Do parcel due diligence
- Confirm whether the address is eligible for USDA by checking the USDA eligibility tool.
- Check the parcel’s flood zone using the FEMA Map Service Center.
- Verify whether the property is inside Livingston city limits and what rules apply. Start with the county’s permits and zoning overview.
- Pull current assessment and appraisal info from the Overton County Assessor page.
2) Gather site and build documents
- Soil and percolation test results, plus your TDEC septic permit application or permit number. See steps on the TDEC septic permit page.
- Proof of water source and electrical service availability, and any state electrical permit records.
- Detailed construction plans, a fixed-price contract with a licensed builder, an itemized budget, and a realistic timeline.
- If you are acting as an owner-builder, prepare a resume of relevant experience and a third-party supervision plan.
3) Prepare your financial package
- Two years of income documentation and recent asset statements.
- Cash reserves for construction contingencies and interest-only draw payments.
- A credit and debt profile that supports the target loan program. For land and nontraditional builds, many lenders require stronger credit or larger down payments. See typical land-loan practices in Bankrate’s land-loan overview.
4) For sellers of cabins and barndominiums
- Provide any engineer-stamped plans, “as-built” documentation, subcontractor invoices, and inspection records to build lender and buyer confidence.
- If the structure was built without permits, consider arranging third-party inspections or engineer letters before listing.
Costs to plan for
- Larger down payments on land or unique structures compared to standard homes.
- Higher interest rates on raw land and sometimes on construction loans.
- Appraisal premiums for rural or special-purpose properties, plus potential re-inspections.
- Third-party engineering inspections or letters to document build quality.
- Flood insurance if the parcel is in a mapped flood zone. Check status on the FEMA Map Service Center.
When each path makes sense
- You found a raw tract and want to hold it for future plans: consider a land loan or seller financing, then refinance when you’re ready to build.
- You’re ready to build a primary residence now: compare USDA-eligible options with a single-close construction-to-permanent loan. Review Fannie Mae’s single-close guidance and check USDA eligibility.
- You’re building a barndominium or cabin with unique specs: talk to rural-focused lenders such as Farm Credit Mid‑America and local banks that understand nontraditional builds. Be ready with detailed plans and builder credentials.
Local next steps
If Overton County’s mix of rural land and nontraditional homes fits your goals, a little preparation goes a long way. Verify your parcel’s rules, line up septic and utility proof, confirm flood status, and match your plans to the right lender. When you want local insight on lots, acreage, cabins, and barndominiums across the Upper Cumberland, reach out. You’ll get practical guidance, trusted vendor introductions, and straightforward help from start to close.
Have questions or want to see available properties and land? Connect with Lisa Ann Garrett -Mitchell Real Estate & Auction Co., LLC for friendly, knowledgeable guidance near Overton County and across the Upper Cumberland.
FAQs
What are typical down payments for land in Overton County?
- Many lenders ask for 15 to 50 percent down on land, with improved lots often getting better terms than raw land, as outlined in Bankrate’s land-loan overview.
Can I use a USDA loan to build a home in Overton County?
- USDA’s Single-Family Guaranteed program can finance new construction for qualified borrowers in eligible rural areas, but you must confirm the specific address using the USDA eligibility tool.
Do I need a building permit outside Livingston city limits?
- Overton County does not require county building permits or enforce countywide building codes outside Livingston. Review the county’s guidance on the permits and zoning overview.
What septic approvals are required for a cabin or barndominium?
- Septic systems are permitted through TDEC, which requires applications, reviews, and inspections. See steps and timelines on the TDEC septic permit page.
How do flood zones affect my loan and insurance?
- If FEMA maps show your parcel in a special flood hazard area, lenders will require flood insurance, which affects costs. Check the parcel’s designation in the FEMA Map Service Center.
What if an appraiser can’t find comps for my barndominium?
- Lenders may use appraisers experienced with rural or special-purpose properties and adjust methods when comps are scarce. Learn what appraisers consider in this barndominium appraisal overview.
