If you’re planning to install a metal building on your property, getting financing can seem tricky. However, for most projects, whether home, agriculture, or business, a simple construction loan will do. Some other banks explicitly offer financing for metal building constructions.
However, provided you have the building plans, a builder, and a building plan, most banks will be willing to offer financing for your metal building project. Depending on the bank, you may even be able to use that loan to purchase property. However, in other cases, you’ll need a separate loan for the land.
*Please note: This is not financial advice and is not intended as such. This article is intended for information purposes only and can be used as a starting point for your research.
16 Best Banks for Financing Metal Buildings*
Nearly any bank will offer financing for a metal building project. Here, you want a “construction loan”, which pays out the loan in increments mapped to materials purchasing and paying construction laborers. In addition, most banks cover metal buildings under “Modular Buildings”. This means that any bank offering a modular building policy is offering a metal building policy.
Some of the best banks for financing metal buildings include:
*Note banks are ranked in no particular order.
1. New Century Bank
New Century Bank is a Christian bank chartered in Kansas. Today, the lender has two bank locations in the state. However, most of its business is done via the web, where New Century Bank specializes in offering modular, system built, and metal housing, storage, and barns.
That specialization makes New Century Bank unique, in that offering construction loans and lease financing for metal buildings is most of what New Century Bank does. At the same time, with no physical location and only a web interface, builders looking for larger-scale loans may want to look for a different solution. However, New Century Bank is a great option for individuals looking for homes, garages, and barns.
In addition, New Century Bank operates directly in collaboration with some steel building manufacturers, meaning you can work with them to speed up your loan.
- Located in Kansas
- Offer loans and lease financing
- 20% down payment preferred
- No need to be an existing customer
- No upfront disclosure on interest or credit rate requirements
Website: https://www.newcenturybankna.com/
Corporate Address:
1211 28th Street
Belleville, KS 66935
Phone: 785-527-2772
2. Homebridge Financial Services
Homebridge is a BBB bank with 25+ years of experience offering credit and building loans. The bank is based in New Jersey but offers conventional, FHA, and construction-to-permanent loans across the USA. Its construction loan, which is suitable for putting up metal buildings, is not available in Tennessee or Iowa.
In addition, the construction loan is designed to offer options to purchase land, pay for materials, and pay for builders. This loan only has interest during construction – which means Homebridge may decide to turn down the loan for very quick building projects. However, with one set of closing costs and no prepayment penalties, Homebridge Financial Solutions is ideal if you’re planning to have most of what you need to cover the building very quickly after construction.
- Available in most of the U.S.
- Bank based in New Jersey
- Credit score of 620+ preferred
- Rates not available online
- No interest after construction
Website: https://www.homebridge.com/
Corporate Address:
Homebridge Financial Services, Inc.
194 Wood Avenue South, Ninth Floor
Iselin, NJ 08830
Phone: 888-266-4930
3. Flagstar Bank
Flagstar Bank is a community-first bank operating across the Northeast and Midwest. With 395+ branches in the U.S., it’s also one of the largest banks on this list. Flagstar is also consistently recognized as one of the best banks in the United States, for construction loans, mortgages, and for personal banking.
That makes Flagstar a great choice for businesses, agriculture owners, and homeowners who want to invest in building projects. Flagstar’s construction loan offers coverage for every part of the building process, from buying land to paying for materials to paying builders. In addition, it’s available in all 50 states and uses an online prequalification.
- Based in Michigan
- Minimum down payment of 3%
- Credit score of 620 preferred
- Flexible construction loan options
- A+ BBB rating
- Rates not available online
- One set of fees/closing costs for the construction loan
Website: https://www.flagstar.com/
Corporate Address:
5151 Corporate Drive
Troy, MI 48098
Phone: (866) 372-3221
4. Nationwide Home Loans
Nationwide Home Loans is a BBB A+ accredited lender offering financing for home builders. While Nationwide is not a good choice for businesses looking for metal building loans, it does offer construction loans. This means you won’t pay interest until receiving a certificate of occupancy. While that won’t matter as much with a prefabricated metal building, it can save you costs over a traditional loan.
In addition, Nationwide offers –10% down, single payment terms for closing costs. Nationwide’s construction loan can also be used to cover the costs of land.
- Minimum loan amount of $250,000
- Down payment starting from 0%
- Minimum credit score is 620
- Construction period of 12 months covered
- Residential loans only
Website: https://www.nhlfinance.com/
Corporate Address:
6500 S Quebec,
Englewood, CO
80111
Phone: (805) 519-8927
5. Go Mortgage Corporation
Go Mortgage is a digital-first lending association offering construction to permanent financing. As a BBB A+ rated lender, Go Mortgage is also extremely popular. Their digital loan management is also one of the best on the market, with options to see the loan, upcoming payments, rates, and total fees associated.
Go Mortgage also offers low down payment rates, which can be as little as 0%. However, Go Mortgage is only available in 35 states, which means you may not qualify. In addition, while Go Mortgage offers 5 options for construction loans, all of which cover metal building construction and land purchase, none of its loans are suitable for commercial purposes. For this reason, you should look elsewhere if you’re looking for a business loan.
- Available in 35 states
- 12 Month Construction Period
- Down payment starting from 3%
- Construction period of 12 months covered
- Fully online application process supported
- Full government backing
Website: https://gomortgage.com/
Corporate Address:
4215 Worth Ave Ste 320
Columbus, OH 43219
Phone: (800) 444-7283
6. Acorn Finance
Acorn Finance is an online lending comparison service offering construction and home finance loans from small web lenders. While Acorn Finance is an independent third party, it can save you considerably over individually researching lenders for your metal building loan.
In addition, Acorn Finance is a BBB A+ accredited business. It also offers personal and business loans, with support from 28 lenders. That means you can definitely find a loan for your metal building construction and land purchase.
- Not a lender
- Minimum credit score of 560/most loans require 620
- Down payment from 10%
- 38+ lenders
- Fully online application and approval process
Website: https://www.acornfinance.com/
Corporate Address:
2600 Capitol Ave 320
Sacramento, CA
95816
Phone: 703-293-3100
7. Wells Fargo
Wells Fargo is one of the largest banks in the world. It’s also a great construction loan lender, with support for metal buildings. Wells Fargo is also one of the only options to offer a benefits and grants program for first-time home buyers and low-income buyers. This can make it easier to get into a loan program, even with no credit.
In addition, with a 24-month rate lock, Wells Fargo is a great choice if you want to guarantee payments. In addition, with branches across the country, you can almost always walk in to discuss your loan, your building plans, and your needs in person.
- Down payment averages 11%
- Multiple construction loan options
- 6-24-month rate locks
- Credit score must be 620 or higher
- Rates vary considerably depending on the buyer
Website: https://www.wellsfargo.com/
Corporate Address:
420 Montgomery Street,
San Francisco, CA
94104
Phone: 800 9564 4422
8. North American Savings Bank
The North American Savings Bank (NASB) is a construction loan and home improvement lender offering loans across the U.S. Here, NASB stands out, with a loan program focused on offering support to military members and veterans as well as to first-time home buyers. Its construction loans also include options for self-employed individuals.
However, NASB offers a unique construction loan in that it does not offer lines of credit. This means you’ll get a single loan payment to pay for your prefab building and the installers. However, you may also be able to work in land purchases as part of the loan. This is not a good option for businesses.
- Located in Kansas
- National Coverage via online banking
- Minimum credit score of 620
- Down payments start at 3%
- Multiple options for military and VA
Website: https://www.nasb.com
Corporate Address:
903 E 104th Street Building C Ste 400,
Kansas City, Missouri
64131
Phone: 866-599-9800
9. First National Bank
First National Bank is a lending bank operating out of Maine but with national loans online. Its mix of business, construction, and mortgage loans make it an ideal choice for most people looking for a metal building loan. In addition, First National Bank only offers fixed rate mortgages, which can be ideal if you want guaranteed rates.
At the same time, First National Bank is expensive compared to some other options. For example, with a minimum down payment of 20%, you’ll have to have more capital than with nearly any other bank. Still, First National offers flexible construction loans including lines of credit that can make achieving your metal building project possible.
- Available in all 50 states
- Based in Maine
- Minimum credit score of 620
- Down payment averages at 20%
Website: https://www.fnb-online.com/
Corporate Address:
3015 Glimcher Blvd.
Hermitage, PA 16148
Phone: 1-833-226-5362
10. Flagstar Bank
Flagstar Bank is a lender located in New York. However, its online banking and lending options are available in all 50 states. In addition, the bank offers several construction loans suitable for metal buildings, land purchase, and lot creation.
However, Flagstar does not offer lines of credit. This may be a negative factor if you’re looking to pay for insultation, interior fittings, etc., from different builders. However, for most, it allows you to invest in and pay everything upfront.
- Based in Michigan
- Serves all 50 states
- Minimum credit score of 620 required
- Average 30% down payment but lower is available
- 9- and 12-month construction periods
- Up to $3 million in value
Website: https://www.flagstar.com/
Corporate Address:
P.O. Box 660263
Dallas, TX 75266-0263
Phone: (855) 385-2750
11. Normandy
Normandy Bank is unique in that it specializes in offering construction loans for modular and metal buildings, normal building projects, and even self-built projects. That makes this lender a uniquely suitable choice for prospective buyers looking to finance metal building kits they want to install themselves. However, with coverage in just 15 states, Normandy isn’t available for every build project.
In addition, with an A+ rating at the BBB, Normandy is one of the best rated metal building lenders in the country. The lender also offers support for residential, commercial, and agricultural projects, including buying land.
- Headquartered in the New York
- Offers loans across 15 states
- 10-20% down payment options
- Up to 75% of land value covered in loan
- Rates vary depending on borrower
- Credit score of 620+ required
Website: https://normandy.com/
Corporate Address:
46 Prince Street,
Rochester, New York
14607
Phone: 800-390-7536
12. FMC Lending
FMC Lending is one of the best metal building loan providers for individuals with bad credit. However, it is important to keep in mind that FMC Lending will only provide a loan for your metal building with a foundation. If you’re planning to install without a foundation, you need a different lender.
In addition, FMC charges high interest rates, which allows them to take on the risk of not requiring a credit rating. Here, you can apply whether you have a bad or even no FICO. In addition, FMC offers both commercial and residential loans, meaning you can build almost anywhere, providing you meet the other program requirements.
- Available in all 50 states
- Down payment of 20-25%
- Loans of 1-15 years
- 7.99-10.99% interest
- No credit score required
- Rates vary depending on borrower and assets
Website: https://www.fundmortgagecapital.com/
Corporate Address:
380 Beach Rd Ste A,
Burlingame, California,
94010
Phone: (415) 358-4223
13. U.S. Bank
The U.S. Bank is one of the largest banking organizations in the United States. That makes it a great choice for most looking for a construction loan for a metal building. However, you have to visit a branch to apply for the loan, which means gathering quotes, building plans, and total costs before you go. Despite that, the U.S. Bank offers an online portal, where you can manage your loan after receiving it.
In addition, U.S. Bank offers full support for agricultural buildings. This means that if you want to install a barn or storage facility, U.S. Bank can provide the capital at loan terms averaging around 10% down payment.
- Available in all 50 states
- You have to visit a branch to apply for a loan
- Loan rates vary based on market changes (which change daily)
- Credit score of 620+ required
Website: https://www.usbank.com/
Corporate Address:
800 Nicollet Mall
Minneapolis, Minnesota
55402
Phone: 1-800-872-2657
14. TD Bank
TD Bank is an almost fully digital bank offering banking and loans for small business, commercial businesses, and individuals. Its’ construction loans are available in 15 states, with full support for metal buildings with and without a foundation.
In addition, TD Bank includes property purchase or you can use your loan to repay existing property loans. While TD Bank does not have a construction period, that will rarely matter for metal buildings. Still, TD Bank offers flexibility, plenty of loan options, and rates that vary depending on the buyer. In addition, TD Bank is one of the only options on this list without FHA and VA loans.
- Services 15 states
- Minimum credit score of 620 required
- No build period
- Fully online borrowing available
Website: https://www.td.com/
Corporate Address:
357 Kings Hwy N,
Cherry Hill, NJ
08034
Phone: 856-482-6662
15. Truist
Truist is one of the most recommended metal building loan providers. In addition, with an A+ rating from BBB, it’s also very well reviewed. However, Truist offers preference and better rates to existing Truist customers. This means it may be in your best interest to open an account with the bank before applying for a loan.
Truist’s construction loans are ideal for installing metal buildings. In addition, Truist offers lines of credit. This means you can pay builders and materials without taking out a larger loan than you need. And, Truist sometimes offers loans to individuals with lower credit scores.
- Public interest rates. At time of writing rates were 8.45%-13%
- 620+ Credit score preferred but not required
- Credit lines based on home value and income
- Available to finance property
- Lines of credit available
Website: https://www.truist.com/
Corporate Address:
214 N. Tryon St.,
Charlotte, North Carolina
28202
Phone: 844-487-8478
16. Horizon Farm Credit
Horizon Farm Credit is one of the best options for financing metal buildings for agricultural and farm properties. The lender offers agricultural-specific loans, designed around the needs of building barns, homes, and additions or extra buildings. In addition, Horizon has a unique option for financing additional buildings and adding acreage to an existing property.
Horizon is also a nationwide credit lender, offering credit, loans, credit lines, and insurance across the country. You can also choose construction loans designed around buying new property with multiple buildings covered in the loan. However, credit will depend on the property and your credit and income.
- Designed around the needs of agriculture
- Farmer-owned cooperative
- Available in all 50 states
- Credit requirements vary
Website: https://www.horizonfc.com/
Corporate Address:
300 Winding Creek Blvd
Mechanicsburg, PA
17050
Phone: 888-339-3334
Types of Metal Building Loans
In most cases, you’ll need a construction loan to install a metal building. These loans give you credit to install normal, modular, and prefab buildings. Some also specifically state steel frame or steel prefab buildings. However, you can also choose a number of different loan constructs. However, not all lenders will offer every option.
Construction-to-Permanent
Construction-to-Permanent Loans are the most common type of loan used to finance metal buildings. These loans include two phases of “build period” and “permanent loan”. For the build period, you already pay interest, however, the rate becomes fixed at the end of the build phase. So, if you have a 12 month build phase, your loan converts to a permanent loan for 7,10,15,30 years, etc., at that point. These loans are advantageous because they allow you to avoid getting a separate loan for build and mortgage. Many also allow you to cover property costs. However, most require a 10% down payment rate.
Construction-Only
Construction only loans are short-term single-close loans that allow you to finance a metal building and then pay it off within 1-3 years. These loans normally offer lines of credit to builders, meaning you can pay builder fees, building delivery, etc., as those invoices arrive. These loans are ideal for financing metal buildings because they can be relatively low value while still giving you freedom to pay for your construction upfront.
Owner-Builder
Owner-builder loans are special constructions for borrowers who also want to install their metal buildings themselves. This allows you to avoid getting information and invoices or quotes from your installer in order to get the loan. However, it may require providing more proof of permits and building to required specifications.
Two-Time Close
Two-time close loans are a combination of construction-only loan and mortgage. Rather than automatically converting to a permanent loan after the build period, the first loan closes. You then open a new loan as a mortgage. This can help you to get better rates. However, it may involve more closing fees than a construction-to-permanent loan.
Bank Metal Building Financing Alternatives
There are plenty of ways you can finance a metal building without going to the bank. The following include some common options:
- Mortgage Lenders – Construction-to-Permanent and Two-Time Close loans and mortgages allow you to get financing for metal buildings from mortgage lenders. However, not all lenders offer these constructions.
- Credit Unions – Most credit unions offer the same services as banks, which means you can very likely get a construction loan from your credit union.
- Personal Financing – Many metal building companies offer financing options or access to financing options directly. If you don’t want a separate loan, contacting a metal building supplier to check for options may be an idea.
- Investors – If you’re putting in a business construction, you may be able to finance the build by looking for investors. Here, you should always ensure that you broker the terms of the investment with a financial expert.