Shipping container homes are growing in popularity, in part because of their low cost and fast build time. But finding a lender to finance a container home can get a little complicated.
A container home is a type of modular or prefabricated (prefab) home that is manufactured off-site in a factory environment.
The modular unit is comprised of shipping containers that have been refitted for use as a home. The unit is then transported to the property location, where it’s either assembled by tradespeople or by the property owner.
Shipping container homes can be customized to fit specific size and design requirements, and you can attach several containers together to make a larger home.
Most new shipping container homes can weather almost any storm because they’re made of steel — which means they’re more stable than some houses.
But used shipping containers can be riskier. If the container was exposed to chemical spills, the structural integrity can be weakened. Plus, containers built for shipping goods often use industrial paints and are sprayed with insecticides, which can be a health hazard.
Depending on the size, structure and design, a shipping container unit could range from just a few thousand for an empty container that you plan to renovate yourself to hundreds of thousands for a large home made out of several containers.
Compare several quotes before deciding on a shipping container provider to ensure that you’re getting the best deal.
How you finance your home depends on how you build it.
If you’re building a new shipping container home, you’d generally get financing through a home construction loan. There are two different types of loan available:
If you’re buying a container home that’s already fully built and is just being shipped to your land, you may be able to finance it as a manufactured home. This gives you several financing options depending on the size and permanence of the home. Read our guide to financing a mobile home to learn more.
Consider speaking to a mortgage broker to help you understand your borrowing options. Provide as much detail as possible about your construction plans and consider approaching specialist lenders that may have more lenient lending criteria.
It can be challenging to qualify for finance to construct a shipping container home due to the limited options available. Lenders tend to be conservative with this type of construction and most banks won’t lend you funds for a property that isn’t permanently fixed to the site.
While these types of applications are handled on a case-by-case basis, you may be able to qualify for finance if you communicate well with your lender, have substantial savings and a reliable income.
Challenges associated with financing a container home include:
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