How to Get a Construction Loan for a Steel Building

When our modular home build fell through due to delays two weeks ago, we discovered the world of "barndominiums" which are homes with steel frames and you can finish the interior however you want.
Steel prices have inflated far less than wood so it can be a more affordable option, but because it's less common than wood, it has some of its own problems - one being financing.
So in this video, I go through how I found a bank that will give us a construction loan with only 5% down, a decent interest rate, and is ok with steel buildings.
I summarize the steps all in a row somewhere around 13 minutes.
Enjoy! And good luck!
Comment below with your own experiences or questions!

[@Usacoax]

$11,000 taxes in NY and $2,200 taxes in GA building the same house. No wonder so many are voting with their feet.

[@Lotus2885]

Thank you! Were going through this now absolutely beating our heads against the wall trying to figure out financing.

[@stefeeze]

I truly appreciate this. My wife and I live in Los Angeles and we have saved up for this! Any more tips please feel free to tell us.

[@Jake-te8et]

Hey, you're giving me hope for building a very small 100k home making 20k a year. I knew the steps necessary, but seeing this video has given me hope. Thank you so much

[@stephanief1768]

I'm so glad! Good luck!

[@MikejgMr33]

Stephanie, THANK YOU!!! Great video and information! So glad to see someone else with elbow grease, spiral, and note-taking. Awesome video and thank you for sharing! Stay well (love the Clorox wipes and Lysol in the background :) )

[@BeardedPharaoh43]

Thank you so much! This is exactly the situation my wife & I are going through...my father in law have the land but we buying a portion from him..so this make sooo much sense & thank you for the clarity of vocabulary usage when speaking w a bank.

[@dwightflowers8595]

I’m thinking of a barndominium and researching about this. Your video is very helpful.

[@samirapena3736]

I'm looking into a metal building and I found you, you gave me hope to looking into this tipe of building. Thank you for your research.

[@cullencasa7217]

Thank you so much for putting this video together. So very helpful! We appreciate it.

[@sabrinabradley5010]

Thank you so much! Great information. Came across you video! Yes! Layouts is the fun part! Heading south to build ours. I did find it difficult to locate builders, we were actually looking for a one shop deal. Peak Steel Building, works with Subcontractors that provide the services needed. I'm going to check out World Wide Steel. Thanks for sharing . 🌻

[@loreleidresman]

Love this Stephanie! Great video. I am putting something very similar together here in the mountains in Southern California. Excited to hear about your journey! Thanks for all the great info🙏🏻😘

[@RdzJohnny]

Hey Im looking to do the same in SoCal would you be interested in sharing some info?

[@gskristin]

This is an extremely helpful video!! Thank you!!

[@laddie2068]

Thank You, your video is very helpful 😊 I appreciate you sharing your experience.

[@ayewhite333]

Thanks for sharing your experience

[@shotbypop7391]

Thanks for the thorough detail

[@frankly2677]

I was surprised when you said world wide steel! They are so super friendly and helpful through my whole barndo building process.

[@DMills-un1tl]

That quote on taxes is ASTRONOMICAL! I’ve never heard of such high property taxes. My current home costs me roughly $1,600./year and I think THAT is high.

[@stephanief1768]

Haha, you're not wrong. Our home in CT was 800sq ft on less than 1/4 acre and was $2800/year. But our lender was even like "Are you suuuuuuure you want to build new in NY?" And said they are unfairly taxing new constructions. It's like NY WANTS people to leave... 🤔 I wish I had more flexibility of location, honestly.

[@athenasbodyathenasbody1634]

You research like I do. Thank you for the great information.

[@marcomaldonado9518]

Very interesting video. Thank you. You're really good and clear when speaking to the camera

[@stephanief1768]

thank you so much! :)

[@mirrandacaseman6971]

Super informative, thank you a bunch. I have been in and around Binghamton New York but never Windsor however we are going to build in Kentucky. I am in the fact and information gathering stage of our journey and your video has been extremely helpful so thank you.

[@stephanief1768]

I'm so glad! Good luck!

[@MrSerafin87]

Thank you so much for all this great info 🙏🏼

[@artb8300]

I was half way into the video and subscribed...thanks for sharing the research and your experiences. I own my land and the steel building is my home of choice. I'm attempting to borrow as less as possible and set yearly project goals as I earn.

[@DMills-un1tl]

All same here

[@michaelhoward6140]

Absolutely helpful Thank you so much More info please

[@sheilapendley1716]

Thank You!

[@lisandrorivera9645]

Thank you so much for the info, very helpful

[@sueperez9961]

Thank you Thank you I am going to the process in NC. So helpful

[@stephanief1768]

Best of luck!!

[@theempoweredlife4415]

Thank you for the info.

[@yayaof1189]

crazy I came across u, this is exactly what I want but, had no idea where to even begin, next problem I have to find a steel builder in Florida.. thank you for the information

[@stephanief1768]

Glad to have helped! There are several people whose primary job is to travel the country and erect people's steel homes. They usually charge $10-$12/ sq ft. I can track down the info for one of them if you want...let me know!

[@kreep941]

Any luck? I am in Florida looking to build as well.

[@IFHSP2]

Try mysavageconstruction.com. The owner Jason is on the FB page FLORIDA BARNDOMINUM FORUM

[@redbuck6058]

Im also in Florida looking to do this. Do you know anything about impact fees? What county are you in??

[@elvesplace]

Arizona here. Any info helps!

[@SmorgasbordHomes]

Thanks so much!!

[@richiezuniga7967]

Thank you🎉

[@theplinkerslodge6361]

Great vid.

[@JEFE310]

Ty

[@Dave-wv3yj]

Awesome stuff thanx starting the process in Delaware. Question, do u have any info on insurance providers that will do a metal building

[@SoniaFernandezMusic]

Very informative, thank you!

[@stephanief1768]

I'm so glad! Best of luck to you!

[@DMills-un1tl]

If you don’t need a whole site construction loan, just a loan for the building and it’s erection, don’t the metal building suppliers have finance companies you can go through? Seems every high ticket item, car/RV/furniture/appliances, has in house mortgage lenders.

[@jrr7031]

Yea my wifes family is from Binghamton,Ny. Didn't know taxes were that high on the southern tier. Wonder when iy moves from "new construction "? Like years built?

[@MikeTheFixer]

Thank you! It’s unbelievable the bank and others ignorance to steel construction. I looked here in fire ravaged CA and this one community wouldn’t allow a steel building. Said I would have to finish it in wood🤣 looking at New England now👍

[@stephanief1768]

Smh... Silly people. But hey! New England is my neck of the woods! It's beautiful here... But expensive... But if you're coming from California you probably won't even blink lol

[@MikeTheFixer]

@@stephanief1768 lol right? i grew up in MA so looking western ma.:)

[@johndespain4620]

ridiculous taxes, 1600 here in ky

[@stephaniebutton2113]

Hey neighbor! I'm also building in Windsor! Still in very preliminary processes and I don't have much to go off of. I've done some research and there is also a bank in Norwich that does USDA construction loans, but I don't have the name in front of me.

[@stephanief1768]

Oh my gosh! AND we share a name! Lol My issue was the 20% down. We couldn't afford that. Northwest bank is who I'm using, if you're needing financing.

[@stephaniebutton2113]

I'll definitely check them out! I already saved your list from the previous comment :) our neighbors are paying $3,000 in taxes/yr so I've had that in mind. I'm definitely going to call and see what they say for our house. I would love to see any updates you have on who is doing your septic and well!!!

[@stephanief1768]

@@stephaniebutton2113 @Stephanie Button I'll def make update videos as I go, but my GC is prob gonna get a sub contractor for the septic. Also, the lender that was telling me about taxes explained that new constructions pay WAY more in taxes than existing homes...which is baloney! (Balogna?) Idr if I said it in this vid, but we were quoted almost $11k for a 2400sq ft house on 20ish acres.

[@stephaniebutton2113]

@@stephanief1768 Sorry, I just watched all your videos so you might not have mentioned taxes in this one 😂Did you mention the general contractor you're using? I'm also in a fb group and that seems to be the part everyone struggles with so I've been really nervous about looking for one around here.

[@stephanief1768]

@@stephaniebutton2113 I'm not 100% decided yet on my GC. I need some more quotes on both price and how long different things will take before I decide

[@medjaim5]

Hi Stephanie my name is Jaime I am building in Ny and was wondering if you can please!!! Help me i own my land can you PLEASE share which lender is doing the FHA one close also wanting to work with steel building i have called everyone with no luck at all.

[@justinmeyer939]

So I had a question. Would you be willing to share those three banks starting with the one your going to use that was 5% down and conventional? I wanted to see if any of them are in my area. 😁

[@stephanief1768]

1. Northwest bank (usually requires 10% down but you can request an "exception" to get 5%) 2. Tioga bank 3. M&T bank will do 10% Unfortunately I can't remember the name of the bank that would do the 5% FHA. In my notes I seem to have left that out..DOH!

[@golfr6178]

I’m in apalachin! Great information. Thank you. Did you happen to inquire at visions credit union? Just curious for the future. Thanks

[@emilyrose9854]

I'm in Kentucky, we're known for steel; it's in the top five if not the top three things that we produce and manufacture globally. and yet I'm not a hundred percent sure I can get a loan on a stainless steel frame house; and I really want one because water and termite damage are inevitable especially where I'm moving out to, and don't get me started on what I want to use for wall boards (plastic).

[@stephanief1768]

Haha, steel sounds PERFECT for your area! If you make enough calls you WILL find a bank who will loan to you. Best of luck!!

[@jimmyfavereau]

❤️❤️❤️

[@yolandaharper4663]

I've been talking to Joe Ferguson at WWS. I love that company, can't wait to purchase my building. So did you already own your property, as thought if you owned then you could use the land as a down payment

[@stephanief1768]

No we do not own it. We're lumping its purchase into the construction loan.

[@ItsYuliLikes23]

So was easy for you to get approved. Because I inherited 12 acres but I don’t have a farm.

[@yolandaharper4663]

@@stephanief1768 thanks for responding. Could you tell me who the bank was that was doing the 5% down conventional as well as the FHA?

[@ci3669]

Where do you go to get home insurance on a structure like this? And is it about the same cost as a regular home? I'm struggling to find someone who will insure a barndo

[@stephanief1768]

You know, I worried about this a lot. But I think we (barndo people) love that we have our "barndo" community, but to a home insurance company, it's just a house. 90% of it is the same as every other house. So, don't call it a barndo when talking to them. I told them the same thing I told the bank: "the frame is made of steel". Because barndos are still niche builds I doubt it will get you a discount (though it SHOULD) but the companies I called were fine with it (confused because they hadn't heard of a house with a steel frame, but fine with it). If you want to be extra sure though, I'd make sure you take pictures of the build process so you can prove that it's steel and that it's your home.

[@johnjohnson1997]

Not long ago PMI could be removed for FHA......it's too bad.

[@yuningdu1029]

What rates you bank gave to you? And is this rule also applies if i wanna build a warehouse?

[@stephanief1768]

Keep in mind, this was about a year ago now. But I got 3.00%. I think for homes that you're not living in you have to put the full 20% down and they prob won't let you finance the land along with it...unless you put 20% down on that too. Most steel warehouse builders also offer their own financing if your bank won't.

[@natesmith9166]

Do you have to drill a well and install septic?

[@joshm1389]

Nah. You just drink soda and shit on the floor all day.

[@stephanief1768]

Sorry I missed your question earlier. Yes, I would have had to drill a well and install septic.

[@anthonymurphy2540]

So, If I sell my house and i receive 75,000 from the proceeds from selling, should buy land out right or fin the land and use the proceeds to build the house? Land is 65k house approx 150k

[@stephanief1768]

Oof, sorry I just saw this so I'm sorry this might be too late to help you. Without knowing your exact situation, it's hard to say. But if it was me, I'd buy the land. Most construction loans (of the banks I talked to) will let you use the value of the land as a down payment on a build so you're killing two birds with one stone.

[@anthonymurphy2540]

@@stephanief1768 thanks 🙏 for the suggestion!!

[@juliemarie7854]

Why are the taxes so high Is it because of a metal building itself?

[@stephanief1768]

No, it's because of the state. NY taxes are high anyway because they charge a separate school tax and property tax, but apparently new constructions get an even higher tax rate than if you were to buy an existing home.

[@DMills-un1tl]

What if i don’t plan on living in it, just want it for my animals? I DO own the land it would go on, 1.+ acres.

[@stephanief1768]

Hm, that's tough. Unfortunately, I'm not sure. I know with second homes or rental properties banks require higher down payments to protect themselves. I would think if it's not for a home, you'd probably be better off using the financing available through the steel building company (assuming you're buying a kit). But really the answer is "idk". I was looking to live in my steel building, so I only asked about that.

[@MatthiasMckinnonlifestyle]

My name is Matthias, I am looking to build a steel building. I am in Albany New York

[@stephanief1768]

Best of luck to you! Especially in New York, you won't be saving much money compared to a regular wood frame home, but there are still lots of benefits. Good luck!

[@n0xxm3rcyxx]

What wss ur total cost for land, and the building and all the essentials, electricity, ect? Total for everything please and thank you.

[@stephanief1768]

So sorry for the late response. Unfortunately, I only know what I budgeted for and for a 4 bed 2 bath two-story house it was going to be about $40k for the land $170k for the modular house and another $100k for the site work. But we got that quote right before all the supply chain issues. So it would definitely be more now. Also, the electrical varies by state. When we were in CT, they wanted almost $10k for running electrical 100ft. In upstate NY it was only going to be $250. I found that out by calling the electric company so I'm sure you could do the same. Good luck!

[@TheKickstart89]

$11000 IN TAXES WOW!!!!

[@stephanief1768]

Yuuuuuup. I have to keep reminding myself "family is worth it!!"

[@Wiz101Geek]

I am not in NY anymore but what most people did is subdivide their own land and put the house on x number of acres and have the rest classified as agriculture

[@stephanief1768]

@@Wiz101Geek fantastic idea!!

[@fakenewselon7759]

Lol bathrobe

[@tks5210]

you are beautiful

[@carl902]

The broad cynicism is a pretty sad indictment on your mental state

[@frisbeecollie]

Super inexperienced to be making a video- I cringe. Lol

[@stephanief1768]

Cringe away

[@medjaim5]

Hi Stephanie my name is Jaime I am building in Ny and was wondering if you can please!!! Help me i own my land can you PLEASE share which lender is doing the FHA one close also wanting to work with steel building i have called everyone with no luck at all.