There is a lot of information on traditional home loans and mortgage options. But it’s a lot harder to find information about new construction loans and especially loans for metal building homes.
With traditional home loan, the existing home is the bank’s collateral. If your financial situation have changed and you can’t afford paying the loan the bank has something what they can sell and get their money back (and in most of cases make profit out of that).
It’s a lot harder to get a loan for an empty piece of land. So here are some tips on financing options for metal building homes.
Financing options for metal building homes
Financing your metal building home it’s the same as financing a traditional wood-framed structure. Because of metal building durability and longevity, your choice of a prefabricated metal building home maybe make you an even more appealing loan candidate.
Do you own a farm or ranch? If yes you can get very good conditions. You may be able to use special grants and loan offers from the U.S. Department of Agriculture. For more information read here
You can have two types of loan:
- Loan for land and the construction of a metal building home.
- Loan only for construction of metal building home.
We recommend option two. This means that you will most likely take smaller loan that will be more affordable and flexible.
Types of loans for steel buildings
One-time close construction – Only one signing. Construction and permanent loads have the same interest rate. As soon as construction term is complete, the loan converts to a permanent mortgage loan.
Two-time close construction – It’s like financing two different loans. One for construction phase and one for the permanent mortgage loan.
Note modification construction – Two separate rates will apply. The first is a fixed rate for construction and a different rate for permanent loan.
Best Place To Get Financing for Metal Building Home
- Banks and credit unions
- Mortgage banks
- Mortgage broker
- Online lenders
- Private lenders
We recommend 1st and 5th option. 1st because banks are most reliable you can be sure that everything will be according to the contract. And 5th because private lenders can offer you better rates and be way more flexible.
We hope that our article helped you and made you few steps closer to your own metal building home!