SAN FRANCISCO — Wells Fargo is moving to expand financing options for 3D-printed housing through a new partnership with ICON, a development that could help accelerate adoption of alternative construction methods amid ongoing housing affordability challenges, according to a new analysis.
Wells Fargo — one of the nation’s largest mortgage lenders — said it will begin offering mortgages on homes built using ICON’s construction technology and provide a financial incentive to buyers, CNBC reported.
Under the program, buyers who finance eligible ICON-built homes through Wells Fargo will receive a 50-basis-point lender credit.
The move marks a shift for 3D-printed housing, which CNBC reported has historically struggled to secure traditional mortgage financing because of lender concerns around the long-term viability of the construction method, future home appreciation and the ability to insure and sell loans tied to the properties.
Preferred Lender
ICON has worked with the Wells Fargo Foundation in recent years on 3D-printed housing initiatives aimed at addressing homelessness. Under the new arrangement, Wells Fargo will become ICON’s preferred lender for homes offered for sale using its technology.
“We think the technology that Icon has built has the potential to lower construction costs and to speed up homebuilding at a time when we are seeing broader challenges in housing affordability and access to homeownership,” Serhat Oztop, CEO of home lending at Wells Fargo, told CNBC.
Oztop added the partnership is intended to bridge the gap between emerging construction technology and access to homeownership.
Should Increase Confidence
CNBC reported that at a recently completed 3D-printed housing development in Texas built by Lennar and ICON, financing had previously been handled entirely through Lennar’s mortgage division.
Jason Ballard, founder and CEO of ICON, told CNBC the backing of a major lender could help increase confidence in 3D-printed homes.
“Having one of the big banking players make such a strong and pointed announcement … helps people believe and understand that this technology, and the houses it produces are ready for primetime,” Ballard said.
Appreciation Expected
Questions about whether 3D-printed homes would appreciate at rates comparable to conventionally built homes have also begun to ease, according to CNBC. Oztop told the network Wells Fargo sees no reason to expect different long-term value performance.
The partnership extends beyond home financing.
CNBC reported that ICON will begin selling its next-generation “Titan” 3D printers directly to developers as part of its effort to broaden adoption of the technology. The printers, priced at $899,000, can produce multistory structures — a capability earlier versions lacked.
Wells Fargo will also offer financing to builders seeking to purchase the equipment, a move Ballard said could reduce uncertainty for developers considering alternative construction methods.
According to CNBC, Ballard said demand has exceeded internal expectations, with reservations for the printers already running at roughly double company targets and hundreds of units reserved. Leasing options are also available, with buyers placing a $5,000 deposit before entering training.
