Will Banks Finance Metal Homes?
When you want to buy a conventional home, you may turn to a bank or credit union in hopes of getting a loan. When you want to buy a prefabricated steel home, which is an increasingly popular choice thanks to its high customizability and low costs of construction, maintenance and ownership, you may wonder whether you have that same option.
So, will a bank finance a pre-engineered steel home? The short answer is yes – in many cases, you may be able to obtain a loan for a steel residence through a bank or credit union.
Financing through a bank or credit union
If you wish to secure a loan for a steel home through a bank or credit union, consider starting with the one you already bank with. If you have been there a long time and have strong credit, that institution may be more inclined to offer you financing. It may, too, be able to offer you better loan terms.
Keep in mind, however, that there are distinct differences between traditional mortgage loans and a loan you may get to construct a new metal residence. The loan terms you get through a bank or credit union may be shorter than those available for a traditional home mortgage, allowing you to pay off the loan that much faster.
When you make your case for financing, know that your chances of getting it typically improve when you have a solid plan and specifications already in place for your steel home. You should also make sure to bring proof of income with you when seeking financing through a credit union or bank.
Your credit is also another important variable. The stronger it is, the better your chances of getting the loan in the first place. Having good credit may also lead to more favorable loan terms, which can translate to major savings through the years.