Did you know that there are several ways to finance your metal building?
Or, that by financing your metal building, you can kick your project off sooner than you could have done otherwise?
In this guide, you’ll find out everything you need to know about financing your metal building, including loan options and where to find them.
What’s in this guide?
What is a metal building?
A metal building is a building that either has a frame that is made out of metals such as aluminium and steel or in some cases it might be made entirely out of steel, including the walls and the roof.
Sometimes you can use other materials in conjunction with metals, such as brick, stone and wood.
This means that you can completely customise your steel building, which could include having a metal building which has the appearance of wood but at a fraction of the cost.
These metal buildings are cost-effective, and they are often used for things like student accommodation, classrooms or temporary homes for disaster relief because they can be quickly constructed and replicated.
Plus, you can benefit from being able to expand your building relatively quickly, or change the interior floor plan.
What can I use a metal building for?
Metal buildings traditionally have a wide range of uses, here are a few that you might want to consider:
- Vehicle storage
- Residential homes
- Agricultural storage
- Self-storage units
- Student accommodation
- Retail outlets
- Pop up shops
- Pop up cafes
- Cafes and restaurants
- Shopping malls
As you can see, metal buildings can be suitable for many different industries, especially considering that with customisation, your steel building could look unique to your brand, using paints and other materials such as cladding.
You can also customise things such as how many doors you want, the size of the openings, the shape of your roof and interior finishes.
Or, you could choose to have metal buildings that can be easily duplicated to a uniform style and materials.
How can I finance my metal building?
There are several ways to help finance your metal building, and choosing the best one for you can make a significant impact on how quickly you can start construction.
As well as what you will need before you begin.
Did you know that some metal buildings will only cost you a couple of thousand dollars?
Because they are made to be an affordable alternative to using other materials, sometimes it’s reasonable to be able to save up your funds to pay for your building outright.
The benefits to this are that you can start designing and constructing your building right away, as soon as you establish with your provider what you need your structure for.
Sometimes, you might be able to purchase a prefabricated building, which can make construction time a lot quicker.
Prefabricated buildings mean that the parts of the building are made elsewhere, then they are brought to your location and assembled.
This can either be done by yourself, or with a team of professional builders.
For small buildings like garages you might be able to do everything yourself, but for larger structures such as barns or homes, you will likely need to pay extra for your structure to be built.
As you are paying for all of this yourself, you can either choose to pay for everything outright, or you could pay as you go which means paying for things as and when you can afford it.
Top 5 Direct Steel Companies
1. Metal Building Outlet
Type: Metal building supplier
Metal Building Outlet is a Colorado-based company that provides its customers with prefabricated steel buildings which you can buy directly.
They can offer you structures for both residential, commercial and industrial purposes, as well as accessories and parts such as doors, windows and insulation.
Although they don’t offer clear pricing information for their buildings, you can get a quote from their website based on your needs.
2. SteelMaster Buildings
Type: Steel building supplier
SteelMaster Buildings are a supplier of both steel buildings and prefabricated kits, which can be used for many uses such as garages, carports, houses, government use, airport hangars and mining structures.
Their steel buildings can come in many different styles and shapes including Quonset Huts, A-frame buildings and X-models, to name a few.
Type: DIY steel building kit supplier
Versatube is an excellent choice for many customers because they offer do-it-yourself kits which can be easily constructed without the need for professional builders or expensive equipment.
Not only can you purchase your Versatube kit directly, but you can also view a clear pricing structure on their website.
Versatube offers a low-cost solution, quick construction times and premium American steel as their primary material.
4. Worldwide Steel Buildings
Type: Steel building supplier
Worldwide Steel Buildings are a Missouri-based company which can provide many kinds of steel buildings such as agricultural structures, recreational, residential and commercial buildings.
Their prefabricated steel kits are American-made, have a high quality, and they are long-lasting too, with minimum maintenance required.
5. Absolute Steel & Storage
Type: Steel building supplier
Absolute Steel & Storage is an Arizona-based company who specialises in creating metal building kits for their customers for commercial, residential and government use.
Their steel building kits are created to be easy to construct, only require necessary tools to build your structure and require little upkeep.
This can have you to save significantly on funds, while not sacrificing on quality as their steel is made and parts manufactured in America.
Financing land and construction
Traditionally, if you needed to acquire funds for both development and the property you need to build on, lenders might offer you a loan which might be divided into two phases.
One for the purchase of the land, and another phase which would be for the cost of construction.
Sometimes these loans have left people with higher interest rates and costs, which is why now they will usually only offer construction or permanent loans.
Your bank will likely give you cheques as, and when different stages of the construction are completed, so they will check in and see how everything is going.
Financing construction only
Construction-only loans, on the other hand, are most effective if you already have the land that you intend to build on.
These loans are often quite straightforward, so you pay back the money you borrow with a percentage of interest on top; however, you will need much more documentation.
In general, this will mean things such as floor plans, whether you are sticking to regulations and ordinances as well as financial records and credit scores.
You can find out more about how to apply for a loan below.
Types of loans
- One-time construction: A one-time construction loan will usually mean that you have one signing, and after around 12 months it will convert into a permanent loan.
- Note modification construction: A note modification construction loan traditionally gives you two different interest rates, one for your development and another for your permanent loan.
- Two-time close construction: Two-time close construction loans mean that you close two times; once for your construction loan, and another time for your mortgage. It is essentially like financing two separate loans.
Top 5 Steel Building Loan Providers
1. New Century Bank
New Century Bank is a Kansas-based lender who specialises in providing mortgages to their customers, for both traditional homes as well as steel or modular buildings as well.
They have a team of uniquely qualified individuals who have specialist experience in different areas such as metal sheds or barns.
This helps them to stand out when it comes to acquiring a steel building loan for your structure.
2. United States Department of Agriculture
Type: a Government department
Location: Washington D.C
The United States Department of Agriculture can offer farmers and ranchers a wide range of different loan types which include the following.
Direct operating loans, microloans, direct farm ownership loans and guaranteed loans, which are based on the fact that you run a family-sized business and can afford the interest rates and repayments on offer.
These interest rates range from 1.500% and 4.00%, and your loan could be used for anything from purchasing livestock to building improvements and steel building construction.
3. Viking Steel Structures
Type: Steel building supplier
Location: North Carolina
Viking Steel Structures are a company which is based in North Carolina and provides their customers not only with steel buildings but also finance.
According to their website, you will be able to find out if you’re eligible for a loan within 48 hours, so it isn’t a time-consuming process or waits to find out all you need to know.
The requirements for acquiring finance through Viking Steel Structures are that you are a homeowner, your finance application will be through the same name as your own and two years of residency and employment information.
4. Admirals Bank
Location: Boston, Rhode Island
Through their partnership with Morton Buildings, customers can benefit from the expertise of Morton Buildings 100 years of experience, and the financial stability of Admirals Bank.
You can utilise these finance options for garages, horse barns, workshops and buildings that you can use for your hobbies.
According to Morton Buildings, the process is fast, and you can find out if your loan is approved quickly.
5. Home Improvement Loan Pros
Type: Loan provider
Location: South Carolina
Home Improvement Loan Pros have been around since 2004, and have provided over 100,000 customers with assistance and loans for their homes and home improvements.
Their loans can be used for multiple purposes such as steel homes, artificial turf, kitchens, driveways, horse barns or pools to name a few.
You can borrow up to $100,000, and you can check your credit scores before you start.
How do I apply for a loan?
Depending on your lender, and the type of loan that you choose, you might need to provide some different documentation or more detailed information. However, this is generally what you will need.
All of these things might not necessarily be required, but they could help your application.
- Have an account with the lender
- Look at your lender’s portfolio to see if your business fits
- Be prepared to borrow a short-term loan
- Have a pack prepared which includes blueprints, floorplans, financial information, your location and things like what your building will be used for
- Make sure that your structure fits in with others that surround it
- Have an excellent credit score, as lenders often use this to make sure that you will pay back the money you have borrowed
Where can I typically find a construction loan?
Typically, this is where you can construction loans:
- Credit unions
- Mortgage banks
- Online lenders
- Private lenders
- Independent financiers
The best match for you might depend on different factors which might include things such as your credit history, what interest rate you can find as well as which lender has the traits you prefer.
This could be things like their online customer rating, having 24/7 support or if they can help you apply for your loan too.
How much do construction loans cost?
Although your construction loan will have a specific cost depending on your particular scenario, here is a general guide you can use to see what your loan might cost.
Let’s take a look.
|$15,000||5 YRS||$332.85 per month|
|$25,000||5 YRS||$562.25 per month|
|$35,000||5 YRS||$773.15 per month|
|$50,000||5 YRS||$1,085.50 per month|
|$75,000||5 YRS||$1,628.25 per month|
|$100,000||7 YRS||$1,649.44 per month|
|$150,000||7 YRS||$2,473.50 per month|
|$200,000||7 YRS||$3,298.00 per month|
|$300,000||7 YRS||$4,908.00 per month|
In conclusion, there are many different options when it comes to financing your metal building, such as getting a loan or funding the project yourself.
Have you learnt everything that you need to know about financing your metal building?
Do you want to learn more about building with steel?
Take a look at the Green Building Elements guides here, to find out more.