There's a lot of information out there about home loans and mortgage options, but when it comes to finding information about new construction loans, it's not quite as easy to get the information that you need.
Financing your metal building, however, is no different from financing a traditional wood-framed structure.
In fact, because of their durability and longevity, choosing a pre-engineered metal building could even make you a more appealing loan candidate.
If you're using your metal building on a farm or a ranch, you might even be able to use special grants and/or loan offers from the U.S. Department of Agriculture. You can find out more about that on the USDA website.
No matter what you plan on using your metal building for, there is a financing option available for you.
In the article below, we'll discuss several of those options, and we'll talk about a few additional considerations, so you're prepared when the time comes.
Table Of Contents
- Common Finance Options For Your Metal Building
- Additional Considerations
- Get Started Today
Common Finance Options For Your Metal Building
1. Finance It Yourself
If there is any way you can pay for your metal building using your own money, you should consider it.
Maybe you think the idea of financing the building yourself is a little too far-fetched, but pre-engineered metal buildings aren't as expensive as you might think.
Depending on the building, you might be able to handle some or even all of the construction work yourself.
Paying for your building upfront will keep you from being tied to a mortgage.
That means there won't be any monthly fees, penalties, and best of all, there won't be any interest to worry about.
It makes it cheaper in the long run and simplifies your life.
2. Use A Bank Or Credit Union
The next best option is to research for financing through a bank or credit union.
The best place to start would be with the bank or credit union in which you are already a member.
They are already familiar with you and will take your customer record into account when they make you a loan offer.
This typically makes the process much faster and less stressful and often results in a better offer than you would get somewhere else.
3. Use A Mortgage Broker
One way to streamline your research process is to talk to a mortgage broker.
Many mortgage brokers offer free consultations as a way to get you in the door, so that you can speak to them without any strings attached.
Once you tell them what your project is, the goals of your project, and your financial situation, the broker will be able to check with their network of lenders to see what you could qualify for.
This is an excellent way to see a variety of loan offers all at the same time.
4. Use An Alternative Direct Lender
Going through a direct lender has its benefits as well.
Whether it's a bank or credit union, a mortgage, or an online lender, by cutting out the middleman, you can usually qualify for better interest rates on the loan for your metal building.
There's also the option to go through a company that specializes in construction loans and understands the complexities and timetables associated with construction projects.
Some lenders are even willing to let you take out a business loan to cover your costs instead of a traditional mortgage.
5. Ask Your Metal Building Company About Financing
Another option to consider is to see if the steel building manufacturer or a steel supply company can finance your project.
This usually works out well because you are able to deal directly with companies that understand, and are also invested in, the project you want to launch.
Because of this, they might be willing to offer you better rates.
This will also likely cut down on the amount of paperwork you have to wade through and sign, making the process much more efficient.
1. Be Prepared
Your lender will want to see your official plans, a realistic building timeline, and may want a cover letter or document that tells them about your projected building.
Make sure your timeline is realistic and takes into consideration weather conditions and other unforeseen circumstances.
You don't want to put yourself in a stressful situation where your lender threatens to back out because things aren't going according to your original plan.
2. Use A Licensed Contractor
Lenders insist that every contractor and subcontractor that works on your building is licensed, bonded, and insured.
Make sure the contractor you hire has worked with lenders in the past because this will make the loan process easier and make for a better relationship between your contractors and the lender's inspectors who will visit the project site from time to time.
Always verify your contractor's license with your local building department, and take your time to check referrals.
Word of mouth is almost always the best way to find a well-respected and reputable contractor in your area.
3. Be Patient
This type of loan will require more time spent on providing documentation and proof of income.expense/debt than with a traditional loan.
This is expected because these loans typically pose a higher risk to lenders.
4. Reduced Insurance Costs
In most cases, constructing a metal building will save you a little extra money when it comes to building insurance.
Low-maintenance attributes, resistance to storm conditions, and fireproofing provide significant discounts.
Get Started Today
The information above gives you a good head start when it comes to financing your metal building.
Once you come up with a plan for your project, have your blueprint created, and have a realistic timeline drawn up, you're ready to start for the financing phase of your project.
No matter what path to financing, you end up taking, be sure to take your time to track down the opportunity that works best for you and your project.
If you are still in the initial planning phases for your steel building, contact CDMG.
CDMG can help you with project and construction management, building supply, engineering, and much more.
CDMG will be sure you get exactly the building you need to match your specific requirements.
Click the button below to get started with CDMG.