I don't understand about the construction loan because if a person owns a house and they want to tear it down and rebuild it, it doesn't have to be on raw land. So, I'd tell you to go to a community bank or credit union and tell them that you want to restructure the barn for living conditions. It's not going to be easy because there is nothing like it to allow the bank to know if they can sell it if you default. You may have to find another barn conversion to show them the value of the home after it's done. Is the area condusive to barn homes? That's what they'll ask.