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In the race to build homes more efficiently and affordably, 3D printing is becoming increasingly viable and popular. But financing housing remains a major hurdle. That is about to change.
wells fargoIcon, one of the country’s largest mortgage finance companies, announced that it has partnered with Icon, a leader in the 3D construction field, to provide mortgage financing for homes built with Icon technology, as well as incentives for buyers. Wells Fargo will offer 50 basis points of lender credit to Icon home buyers with mortgage financing.
Icon has been working with its philanthropic arm, the Wells Fargo Foundation, on 3D printing communities for unhoused people for several years. Wells Fargo will now be Icon’s preferred lender for 3D printed homes for sale.
“At a time when we are seeing widespread challenges in housing affordability and access to homeownership, we believe the technology we have built at Icon has the potential to reduce construction costs and accelerate home construction,” said Sarhat Oztop, CEO of Wells Fargo’s Home Lending Division. “Through this partnership, Wells Fargo is bridging the gap between this new technology and access to homeownership.”
Historically, 3D printed homes have been difficult to qualify for traditional mortgages. Lenders were concerned about the technology’s feasibility, its potential to increase home values, and its ability to both sell and insure loans. Icon’s new Lennar community, completed in Texas last year, was entirely financed by Lennar’s own mortgage division.
ICON 3D printer at a housing development in Georgetown, Texas.
Diana Orrick | CNBC
“Even though all of our testing and results are on the books, one of the major banks said, ‘We love these homes and we’re excited about these homes,'” said Jason Ballard, founder and CEO of Icon. “In fact, making a strong, sharp announcement like ‘we’re going to give preference to these homes’ helps people believe and understand that this technology and the homes it produces are ready for prime time.”
There were concerns that these homes would depreciate in value at the same rate as traditional homes, but those concerns appear to be waning. The first Lennar-Icon 3D printing community sold quickly, and another, larger community is currently in the works.
“There is no reason to believe that the long-term value of these homes will be any different than homes built using traditional construction techniques,” Oztop said.
Ballard hopes to expand the technology to other construction companies. He said that since the company was founded in 2017, the goal has been to become a tool manufacturer and get these 3D printing tools into the hands of builders and developers around the world. “We want to enable a revolution in faster, lower cost, higher quality housing,” he said.
To this end, ICON will be selling its new “Titan” 3D printer to developers. This new generation of technology can print multilayer structures that were not possible with previous versions. The price is $899,000.
Wells Fargo plans to provide financing to builders interested in purchasing the printers, demonstrating the agency’s confidence in alternative construction.
“I think Wells Fargo just gives confidence to builders and developers who want to have this tool in their quiver or tool belt, so to speak, that ‘we’re going to deliver a product that’s market-ready and we’re not going to run into any unforeseen hurdles,'” Ballard said.
Ballard added that printer sales are already running at about double internal targets, with hundreds of units already reserved. Lease options are also available. Buyers put down a $5,000 deposit and then undergo training.
“It will take less than a minute to be able to produce hundreds at a time,” he joked.
