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How to Finance Your Metal Building

Daniela Vazquez

Even though steel is far more affordable than wood, you might still wondering about financing options.

It’s easy to find information about home loans and mortgages, but financing for brand new construction projects is a bit trickier. Just think of it this way: financing your metal building is the same as financing a wooden structure.

You might even be more appealing as a loan candidate, as metal buildings are highly durable, safe, and require less maintenance over time than wooden structures

Metal Building Financing Options

When planning your metal building, consider the following options for financing:

Finance it Yourself

This is the cheapest and easiest option overall, if you can swing it. Rather than paying expensive fees and interest on your metal building, pay for your project out of pocket and enjoy peace of mind. This additional capital can be reinvested in other projects, like customization and landscaping that add major curb appeal.

Many people are shocked by the economical cost of metal buildings, so don’t rule out self-financing for your project.


RTO National

At Alpha Structures, we’ve partnered with RTO National for financing up to $20,000 and 60-month terms for qualified buyers. We offer a fixed APR, starting at 11.99%. Rent-to-own options are also available for landowners and homeowners, and can finance up to $15,000 for 60 months. Since no proof of income or credit check is required, the interest rates with rent-to-own tend to be higher.

Whether you need a small loan or a sizable advance, RTO National has a solid reputation with metal building buyers.

Farms and Ranches: USDA Department of Agriculture Loans

If you’re building a metal structure on your farm or ranch, you may qualify for a USDA agricultural loan. This can simplify the financing process and reduce your overall metal building cost. 

Mortgage Broker

Most mortgage brokers offer free initial consultations with no strings attached. Learn from a professional about various types of loans and offers depending on your project. Describe your concept, specific needs, and building site and see what they offer.

How soon are you hoping to install your metal building? Talk to one of our  specialists about available dates.

Bank or Credit Union

If you have a good relationship with your current bank or credit union, feel free to use them for metal building financing. You can benefit from using a familiar institution—they may be more likely to offer you a competitive rate if you have a good working relationship. Many states have established rates for loans, so do your research and take advantage of your local regulations. 

Direct Lender

If you can’t get a traditional bank loan, direct lenders are a good alternative. Bear in mind that direct lenders often do not offer the most competitive rates. However, if you have poor credit, they may be a viable option for metal building and barndominium financing.

Construction-Only Loans

If you already have the land, these loans (when compared to other types) are usually best—but they require a lot of documentation. Construction-only loans may require in-depth financial records, a blueprint for your project, and your plans surrounding local regulations. The bank typically wants to see that you have a concrete plan and solid credit history before moving forward with a loan.

Useful Construction Financing Terms

As with anything in financing, there are a variety of terms and options when it comes to securing a loan. It is very important that you evaluate the terms extremely carefully. You need to be sure that the terms are favorable, and it is something that you can realistically repay. 

Here are some common examples of construction 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 again for your mortgage. It is essentially like financing two separate loans.

These construction-only loans can be offered by banks, credit unions, direct lenders, independent financiers, and mortgage brokers.

Ask Your Metal Building Contractor About Financing Options

Metal building contractors have a vested interest in the success of your project. If it goes well, the contractor will benefit from a happy customer and their resulting testimonial. Because of this, metal building contractors are often a good resource and will do everything in their power to minimize your metal building cost.

Metal building contractors may be willing to offer you a more competitive rate and cut down on paperwork, which will save both of you a headache. If you have questions about metal building financing, don’t hesitate to reach out to a qualified representative at Alpha Structures. Sit back and relax as we find a financing option that best fits your needs so you can concentrate on enjoying the metal building of your dreams. 

Metal Buildings Cost