Washington State Steel House Advise

[Terrel L. Shields]

I've never seen one go secondary market. I would not want to loan on it in secondary market. I would look for a conventional loan, perhaps an ARM from an ag lender and many rural banks would call this a "commercial" loan, i would bet.

They take a beating in foreclosure here, and thus, I normally would apply a large adjustment for functional obsolescence. These sold for well under 50% of cost and only 1 was foreclosure. The top one was not a repair shop then, but has $250,000 house with huge fireplace, loft bedrooms, etc. in the rear. The others mostly are house utility.

 

[NachoPerito]

Is it being permitted as a dwelling?
Is it residential zoned and is it not used for commercial purposes?

If the above answers are yes then there are no issues. The giant garage and unique design may suffer from functional obsolescence, which is no big deal if you plan to live there a long time

 

[TJones]

I've never seen one go secondary market. I would not want to loan on it in secondary market. I would look for a conventional loan, perhaps an ARM from an ag lender and many rural banks would call this a "commercial" loan, i would bet.

They take a beating in foreclosure here, and thus, I normally would apply a large adjustment for functional obsolescence. These sold for well under 50% of cost and only 1 was foreclosure. The top one was not a repair shop then, but has $250,000 house with huge fireplace, loft bedrooms, etc. in the rear. The others mostly are house utility.
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What part of the country are you in? I know this is more prevalent in Texas and the Midwest. Not so much here in the NW.

 

[TJones]

Is it being permitted as a dwelling?
Is it residential zoned and is it not used for commercial purposes?


If the above answers are yes then there are no issues. The giant garage and unique design may suffer from functional obsolescence, which is no big deal if you plan to live there a long time

I would permit as a dwelling and I won't be running any business out of it. As for zoning I intend to build in a rural area.

 

[Mark K]

I've appraised about 5 of those type of structures in my career. The local banks don't seem to have a problem with them and the resale is usually pretty good, maybe because they are generally located on 20-100 acre sites in this area. Buyers are as interested in the land as much as the home (usually horse people) but the design/construction doesn't seem to frighten anyone. The interiors of some are on par with high quality custom homes and when you're inside, you can't tell the difference. Max loan-to-value is usually 70-75% with the local lenders.

One bit of advice, do some research on General Steel. I've never met a satisfied customer in this area.

 

[Terrel L. Shields]

What part of the country are you in?

NW Arkansas

 

[Artemis Fowl]

Good questions prior to a decision. More than one person has decided to save a buck or two on the front end of a venture only to find the back end cost was greater than anticipated. Not saying this is that situation...just think it's wise to make an informed decision. Was a situation posted not too long ago where somebody saved a few bucks by building numerous additions instead of upgrading to a larger home and appears unhappy with the marketability of the property now that they are trying to sell it.

 

[The Warrior Monk]

This is a situation where some lenders will lend on the property; others won't. It is possible that some conventional lenders (Fannie/Freddie loan) will have a problem lending on this type of property. Many "nonconvetional" lenders with competitive rates will not have an issue with a property of this type.

 

[BRCJR]

https://metalbuildinghomes.org/

 

[Restrain]

Wen appraising in Texas, I did a bunch of these, generally through local banks. In that market area they did well in terms of value. Now here in Florida, they wouldn't get a permit as they don't meet current building codes for homes.

Go to a,local bank and talk to the home lender there. Don't mess with Quicken, Bank of America, Wells, etc.