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Steel Sided Homes

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Author: Debby Rehn

Shome. Shouse. Barndominium. These may sound like an alien language, but all actually refer to a hot trend in housing across the country: steel sided homes. “A great selling aspect of shomes is the flexibility. A lot of younger or beginner farmers, for example, appreciate having the ability of combining a high-end work and living space under one roof.” says Compeer appraiser Durkin Young.

A discussion with a builder or a quick search of online forums indicates it’s challenging for most borrowers to find financing for these types of homes. The good news is Compeer Financial accepts these structures! That means, as part of your partnership with us, you can provide a niche loan option for what is becoming a growing trend in primary residences.

There are a few important things to keep in mind when discussing steel sided homes with your borrower.

 
  • The home area needs to be a significant portion of the building – it needs to feel like a home versus a shed or barn with living quarters.
  • They cannot have connected space with livestock.
  • Mortgage insurance is currently unavailable on these types of homes so the maximum loan-to-value is 80%.

As with any property, the appraisal and comparables are important. While underwriting can stretch the radius on these, providing two comparable sales is extremely beneficial. As always, the Compeer underwriting team is here to guide you. Send scenarios our way and we can provide feedback on where the unique property fits into one of our programs.

Steel sided homes can be a great fit for some borrowers. To create a smooth process for your client, start discussions early on the parameters around this unique property and get them pre-approved with Compeer. There will be no surprises and you can help get them into their dream home!

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