The small home movement is leading to a lot of new developments in container homes and other forms of pre-fab and modular homes. Unfortunately, the banks have often failed to recognize these in the same category as traditional homes so financing can often be difficult to come by.
Why don’t banks finance container homes?
In large part, it comes down to the fact that container homes are often considered personal property rather than real estate. This means that they can be harder to sell and appraise, making them a riskier investment for banks.
Banks are very risk averse and also very slow to adapt to new ideas. Because container homes are considered portable, they often don’t want to finance something you could potentially pick up and run off with if you default on your payments.
That doesn’t mean you can’t finance a container home, however. You’ll just need to do a little extra legwork to find the right lender. Look for smaller, local banks or credit unions who may be more familiar with container homes in your area. You may also need to put down a larger down payment or agree to a shorter loan term in order to get approved.
Alternative Financing for Container Homes
If you’re looking to finance a container home, your best bet is to talk to a lender that specializes in alternative financing options. They’ll be able to give you the most accurate information and help you find the best option for your situation.
Often the companies that specialize in financing for personal property are a better fit for container home financing since it is not considered property by the larger banks. Such companies include private lenders, online lenders, and hard money lenders. Be sure to shop around and compare offers with the best terms and rates before signing on the dotted line.
You may be able to get a personal loan from your bank for a container home if you have good credit, but you’ll likely pay a higher interest rate than if you went with a specialized lender.
Since container homes or modular homes are generally more economical than traditional homes, you may be able to finance your container home with a construction loan. Construction loans are usually short-term loans that are used to finance the building of a home. They typically have variable interest rates and require the borrower to make interest-only payments during the construction period.
Check with the builder of the container home because they very often have partnerships with financing agencies to provide pre-fab homes with easy installment payments. Container home builders have made it easier for people to finance container homes by partnering with financial institutions that offer easy financing terms.
Finance a Container Home in BC
If you’re looking to finance a container home in British Columbia, there are a few options available to you. You can work with a specialized lender, get a construction loan, or take advantage of the easy financing terms offered by container home builders. Whichever route you choose, be sure to compare offers and terms to get the best deal.
Container homes can be a great option for eco-friendly, sustainable living. With a little extra effort, you can finance your container home and start enjoying all the benefits
