Choosing to live in a shouse is growing in popularity. You might be among the many who are wanting to combine their living arrangements with their workplace and strike a balance between the two. To do this, you might look at creating a shouse. These are usually made from prefabricated kits out of metal and they can be erected easily. Having the land and space to do it is one thing, but did you know that financing your project might be harder than you think? This is because many lenders don’t recognize a shouse as commonplace as more traditionally built homes. While this may change in the future, you may be wanting to find out how you can finance your shouse today. Here are some of the ways to do it.
Discuss your requirements directly
The reason why a mainstream mortgage application might not get the response you would like is because many mortgage lenders don’t get applications for prefabricated homes. So this is where the risk element is heightened. However, making an appointment to discuss the loan with the lender directly can help you to gain some traction on your application. Lenders are more cautious since the 2008 financial crash, so you may need to provide evidence and support for your application before it can continue.
Calculate the total cost of the project
Going to the lender without a well-thought-out plan could be disastrous. So a great way to discuss your loan application further is to calculate the total cost of the project. This includes things such as land, utilities, site work, and finish. Of course, it might be hard to be exact with your figures, but calculating the shouse cost to the best of your ability and providing evidence for that can support your application.
Plans can help you
Calculating the costs is one thing, but having plans that also provide the evidence and visual aspect of the project can help to add additional support to your application. This could be the floor plan and elevation. It takes away the guesswork and provides a visual element to your application that may not have been included before.
Determine your capital investment
Your lender will want to understand what you plan to invest in. So rather than being vague about it, explain what capital you have and how much you intend to invest. While you may want to put in as little as possible, they will want to understand that you have the funding in place to back up the capital versus the full loan requirement.
Seek guidance with others who have completed projects
Finally, a good idea is to seek out others who have been successful in a shouse project and gained finance. They may be able to give you some advice, recommend lenders and also help to give you an idea of what to expect. Often a person’s experience can be priceless.
Hopefully, this has given you some insight into how to finance a shouse.