Getting a mortgage for a non-standard construction house or metal building can be a bit more challenging than securing financing for a traditional stick-built home. However, with proper preparation and understanding of the process, it is possible to obtain a mortgage for these unique properties.
Understanding Non-Standard Construction
Non-standard construction refers to any residential structure that deviates from the typical wood-framed or brick-and-mortar construction methods. This category includes metal buildings, log homes, earth-sheltered houses, straw bale homes, and other alternative construction methods.
Metal buildings, in particular, have gained popularity due to their durability, energy efficiency, and cost-effectiveness. These structures are typically made of prefabricated steel panels or insulated metal panels, offering a sturdy and low-maintenance alternative to traditional building materials.
Challenges in Obtaining Mortgages for Non-Standard Homes
Lenders may be more cautious when it comes to financing non-standard construction homes because they perceive a higher risk associated with these properties. Some of the common concerns include:
- Resale Value: There is a perception that non-standard homes may have a smaller buyer pool, potentially impacting their resale value.
- Appraisal Challenges: Finding comparable properties for appraisal purposes can be difficult, as non-standard homes are often unique in their design and construction.
- Lack of Familiarity: Some lenders may not be as familiar with alternative construction methods, making them more hesitant to provide financing.
Steps to Increase Your Chances of Getting a Mortgage
While obtaining a mortgage for a non-standard construction home or metal building may require more effort, there are steps you can take to increase your chances of approval:
1. Research Lenders
Not all lenders are willing to finance non-standard construction homes. Start by researching lenders that have experience with these types of properties. Look for local or regional lenders, credit unions, and specialized mortgage companies that cater to unique home financing needs.
2. Provide Detailed Documentation
Be prepared to provide extensive documentation on the construction methods, materials used, and the overall structural integrity of the property. This may include engineering reports, building plans, and certifications from qualified professionals.
3. Demonstrate Expertise
If you are building a non-standard construction home from scratch, it's essential to demonstrate your expertise or hire experienced contractors. Lenders will want assurance that the construction process is being handled by knowledgeable professionals.
4. Consider a Larger Down Payment
Lenders may require a larger down payment for non-standard construction homes to mitigate perceived risks. Be prepared to put down at least 20% or more of the property's value.
5. Seek Specialized Appraisals
Request an appraisal from a professional familiar with non-standard construction homes. This can help provide an accurate assessment of the property's value and potentially alleviate lenders' concerns.
6. Explore Alternative Financing Options
If traditional mortgage options are limited, consider alternative financing methods such as construction loans, owner-builder loans, or land-and-construction loans. These options may provide more flexibility for unique construction projects.
Conclusion
Obtaining a mortgage for a non-standard construction house or metal building is achievable, but it requires diligence, preparation, and patience. By researching lenders, providing detailed documentation, demonstrating expertise, and exploring alternative financing options, you can increase your chances of securing the necessary financing for your unique property.
Remember, communication and transparency with potential lenders are key. Be prepared to address their concerns and demonstrate the value and structural integrity of your non-standard construction home. With persistence and the right approach, you can turn your dream of owning a unique and sustainable home into a reality.