Three things every buyer should understand before talking to a lender.
When you build, you don't get a regular mortgage up front. You get a construction loan that pays your builder in stages as work is completed — then it converts to a normal mortgage when the building is done.
Most banks are used to financing wood-framed homes. Steel buildings are different, and some lenders won't touch them. The good news: there are lenders who specialize in exactly this.
Your location, credit score, veteran status, and how much cash you have all determine which programs you qualify for. There's no single “best” loan — only the best loan for you.
Insider Tip
Answer 7 quick questions about your situation. We'll match you with the loan programs that fit and explain exactly why.
Question 1 of 7: Your State
This helps us find lenders and programs specific to your area.
Buyer Protection
Each program has different requirements, benefits, and trade-offs. Here's a quick look at all six.
Government-backed zero-down-payment loan for rural properties. Available through USDA-approved lenders for primary residences in eligible areas.
Min Down
0%
Rates
5.5–6.5%
Min Credit
620
Best For
Rural homebuyers building a barndominium or steel-frame home who want zero money down
FHA-insured single-close construction-to-permanent loan. Low down payment (3.5%) and flexible credit requirements, but mortgage insurance is required for the life of the loan.
Min Down
3.5%
Rates
6.0–7.0%
Min Credit
580
Best For
First-time buyers with moderate credit who want low down payment and single closing
The gold standard for eligible veterans — zero down, no PMI, lowest rates. Finding lenders who offer VA construction loans for steel buildings is the main challenge.
Min Down
0%
Rates
5.25–6.25%
Min Credit
620
Best For
Veterans and active-duty service members building a steel home who want the best loan terms
Cooperative lending system serving rural and agricultural borrowers. No 'metal building stigma,' patronage dividends can reduce effective interest rate by ~1%, and they understand…
Min Down
15–20%
Rates
5.5–7.5%
Min Credit
660
Best For
Rural landowners and farmers building shops, barns, or barndominiums on agricultural land
The most flexible mainstream option — available for primary residences, second homes, and investment properties with no geographic restrictions. PMI drops off at 80% LTV.
Min Down
10–20%
Rates
6.0–7.5%
Min Credit
680
Best For
Well-qualified borrowers who want maximum flexibility on property type and location
Community banks, credit unions, and portfolio lenders who set their own rules. Maximum flexibility on building type, but shorter terms and higher rates. Best for owner-builders and…
Min Down
15–25%
Rates
7.0–10.0%
Min Credit
Varies
Best For
Borrowers building non-traditional structures or those who don't fit standard program requirements
Watch Out
Insider Tip
Steel building financing has unique challenges. Here are the questions we hear most often.
