Sounds like the place some friends and I stayed in Oberammergau.
There are a lot of such places! And very reasonably priced, too, at least the time of year we visited.
We actually stayed at two different ones, as we traveled a bit. One was just about right over the barn - they had a couple of milk cows. And it was almost at the top of a hill overlooking the mountains. I got up at dawn and walked as high up as I could to watch the sun come up over the peaks. There's no way to capture that in photos...it was glorious!
have either of you been to or heard of the town in Bavaria called Obertreu? I'm not sure of the spelling but that is were my g-g-grandfather on my mother,s side was from.