According to CNBC, the two businesses announced that Wells Fargo $WFC +0.93% will provide a 50 basis point lender credit to purchasers of homes constructed using ICON’s 3D printing technology. This represents a major change in conventional mortgage financing for 3D-printed homes.
ICON’s preferred lender for 3D-printed homes will be Wells Fargo. According to CNBC, the bank would also provide funding to builders who buy ICON’s printers.
“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,” said Serhat Oztop, CEO of Home Lending at Wells Fargo.
According to CNBC, buyers of 3D-printed homes have previously been unable to obtain traditional mortgage financing because to banks’ concerns about resale potential, the longevity of the manufacturing process, and whether or not such loans could be packaged or insured. Last year, Lennar’s mortgage division handled the financing for ICON’s first finished neighborhood in Texas.
The Wells Fargo relationship, according to Jason Ballard, Founder and CEO of ICON, tells builders that the houses are ready for the market.
“Having one of the big banking players make such a strong and pointed announcement that, ‘We like these houses, we’re excited about these houses, in fact, we’re going to give preferential treatment to these houses,’ helps people believe and understand that this technology, and the houses it produces are ready for primetime,” Ballard told CNBC.
According to Oztop, the bank has no reason to anticipate that 3D-printed homes will be worth less in the long run than residences constructed using conventional techniques.
According to CNBC, developers can now buy the “Titan” printer, a recently announced ICON printer. The Titan can manage multi-story construction, in contrast to its predecessors. Developers can purchase one for $899,000, and a leasing option is also available; those who proceed must pay a $5,000 down payment before beginning a training program. Ballard reported that hundreds of printers have already been reserved, and sales are about twice as high as the company’s internal goals.
Ballard stated that the company’s objective since its establishment in 2017 has been to provide 3D printing solutions to developers and builders across the globe.
“It will take us a minute to be able to produce hundreds at a time,” Ballard said.
