Getting a metal building is a big investment. Whether you’re adding a garage, workshop, or equipment shelter, you’ll likely need a solid financing plan. However, banks often struggle to understand metal buildings. Some lump them into construction loans or prefab structures, others don’t know how to value them. This lack of clarity can lead to delays, higher rates, or even outright rejections, especially if you’re not prepared with detailed plans and cost breakdowns. That’s why researching your metal building financing options is crucial. It helps you get better rates, avoid surprises, and ensure the project goes smoothly.
Bull Buildings makes this easier by tapping into its network of 28 suppliers and trusted lenders. You can avoid shopping around for every loan. Bull Buildings will match you with the right financing based on your building’s size, location, and purpose. Whether you’re outfitting a ranch or setting up a commercial garage, we shop smarter so you can build faster.
Option 1: Home Improvement Loan
For smaller projects like a single-car garage or modest workshop, a home improvement loan, often an unsecured personal loan, can be a good choice. The application is straightforward, and rates tend to be fixed, helping you lock in predictable monthly payments.
These loans typically don’t require collateral, meaning your home isn’t on the line. You can complete construction quickly without messing with equity. Application timelines are fast too, often online or over the phone, and funds are released in a lump sum after approvals.
However, keep in mind: loan amounts are capped. If costs rise due to material fluctuations or surprises during construction, you could fall short. Furthermore, since there’s no collateral, interest rates will be higher compared to secured financing.
Option 2: Home Equity or HELOC
If you’ve built up equity in your property, a HELOC or home equity loan is another route. You tap into that equity without refinancing the entire mortgage. This works well if you want flexibility, have the cash on standby and only draw as needed.
Since it’s secured, expect lower interest rates than personal loans. You can ideally shop for better value, and payment terms tend to be longer. But there are risks: your house becomes collateral. Miss a payment, and you could face foreclosure.
HELOCs often carry variable interest rates, which means budget uncertainty. And if construction costs overrun, tapping more credit could lead to financial trouble. Discipline is key.
Option 3: Construction or Construction-to-Permanent Loans
For larger metal buildings – think big garages, workshops, or commercial barns, a construction loan is more fitting. These are short-term, interest-only loans that cover materials and labor during the build. Once complete, you refinance into a regular mortgage.
Construction-to-permanent loans (also called single-close loans) are more convenient. You apply once and receive both construction and long-term financing in one package. This avoids timing hassles and refinancing fees. Payments are interest-only during building, then shift to a set-rate mortgage once complete.
Find lenders familiar with metal builds. New Century Bank is one standout, offering tailored mortgages for post-frame, steel, and barndo structures. They support both agricultural and residential uses, including allowing owner-contractor work. Their terms align with standard mortgages: low down, fixed rates, and no second loan needed.
Option 4: Agricultural or Rural Property Financing
Building on farmland? You may qualify for agricultural financing. Lenders aligned with USDA or regional farm-credit programs know metal barns and equipment sheds. Loan terms are often favorable if the structure supports agricultural productivity. These lenders also tend to be more flexible about building materials and usage, which can streamline the approval process and reduce delays.
Programs like the USDA Farm Service Agency offer loans or guarantees to farmers who may not qualify for traditional bank loans. Structures must meet agricultural use codes and building plans must be solid, but these programs may allow longer terms and lower rates than standard commercial loans. With the right paperwork and a clear agricultural purpose, financing can be both fast and affordable.
Option 5: Dealer Financing or In-House Programs
Some metal building suppliers offer financing directly through partnerships with lenders. While Bull Buildings doesn’t lend money ourselves, because we’re a broker, not a builder, we work with dozens of suppliers across the country, many of whom offer in-house financing or have vetted loan partners.
Dealer-backed financing tends to be quicker. You often get prequalified during the quoting process, and the supplier can roll the loan into your package. This is helpful if you want a single point of contact and fewer moving parts. Many of these loans offer fixed terms, affordable monthly payments, and fast approvals, especially for customers with decent credit.
Just be aware: dealer financing programs might offer higher rates than banks or credit unions. Always review the full terms, including late fees and prepayment penalties. Still, for many buyers, especially those without time to shop lenders, this can be a fast-track solution.
What Affects Your Financing Terms?
No matter which financing route you choose, your rates, loan terms, and approval odds will hinge on a few common factors.
First is your credit profile. Lenders look at your credit score, debt-to-income ratio, and payment history. The better your credit, the more favorable your loan offer – lower APRs, higher amounts, and fewer fees.
Second is the type of structure you’re financing. Not all lenders treat metal buildings equally. Some only fund traditional homes, while others specialize in post-frame barns or garages. That’s why you need to work with financing sources that understand metal construction and don’t lump your structure into the “non-conforming” category.
Third is your location. Financing a metal building in a rural zone versus a suburban property may change your lender options. Agricultural loans may open up, while suburban buyers might lean more on HELOCs or construction mortgages. State-specific programs, especially for farming and development, can also make a big difference in terms.
Finally, your building plans and documentation matter. A lender wants to see real numbers – quotes, blueprints, timelines, and permits. The more prepared you are, the more risk you remove, which increases your chances of loan approval.
How Bull Buildings Helps You Finance the Right Way
At Bull Buildings, we don’t build sheds, and we don’t sell them either. What we do is shop across 28 suppliers and make sure you’re getting the best price on the right metal building for your needs, but we don’t stop there.
We understand that the cost of building a 12×16 shed, or any other metal structure, doesn’t end with the base kit. That’s why we guide you through metal building financing options that actually make sense for your situation. Whether you’re storing tractors on a ranch in Oklahoma or need a garage in rural Georgia, we’ll match you with suppliers who offer financing or who’ve worked with lenders that understand your kind of project.
We also help you get quotes fast, so you can lock in pricing before steel costs go up. Additionally, because of the volume we handle: over $40 million annually, we’re able to help you secure better pricing and pass those savings straight to you. That matters when you’re taking out a loan and every dollar counts.
Hence, if you’re ready to put up a structure but still unsure how to pay for it, talk to us first. We’ll match you with a supplier who fits your budget, walk you through your financing options, and help you get your project moving without wasting time or money.
Ready to build smart? Let Bull Buildings help you find the right metal building at the right price, with financing to match. Get started today.
