How to Get Financing for Your Metal Building
Metal Building Financing
Unless you have enough cash on hand to buy your steel building outright, you will have to secure financing to purchase your shop, barn, arch building, warehouse or what have you. In comparison with traditional wood construction, prefabricated steel buildings are often much more affordable to buy, raise and maintain, but you may wonder what financing options you may have available to you to help with the initial purchase.
Many people facing similar circumstances are able to finance their metal building purchases in the following ways.
By securing a bank or credit union loan
Just as a bank or credit union may offer you a loan for a traditional home, they may do the same for a steel building. Whether you can obtain a loan through this method will depend on several variables, such as your credit history and how long you have been with the institution. It may serve you well to check with your exiting bank or credit union first, as they know your history best and may be able to offer the most favorable rates and terms.
By securing a construction loan
You may be able to get a construction loan through a bank or credit union, but you may also be able to do so through other providers. Depending on where you live, you may be able to get financing for your metal building through an online or private lender, or through an independent investor or entity.
By securing private funding
Comparatively speaking, steel buildings have low upfront costs, and you may be able to cover them by obtaining private funding, which may come with more favorable terms. You may be able to get funding through a company that offers business loans for financing metal buildings. You may, too, depending on the cost of your building, be able to secure a loan through a family member, a close colleague or through an accredited online investor.
By securing a loan through a mortgage broker
If you’re seeking funding for a steel residence, you may be able to obtain it by working with a mortgage broker. A mortgage broker is someone who serves as a middleman between you, the borrower, and potential lenders. This professional may be able to help you shop around for the best rates and terms.
While you may have a number of options available to you when seeking financing for your steel building, your chances of doing so easily, and at a satisfactory rate, improve when you have strong credit.