3D home development received a stamp of approval this week within the mortgage industry thanks to a new lending agreement between Wells Fargo Bank and technology construction firm Icon. 

The two companies announced a deal that makes the San Francisco-based banking giant the preferred lender for new 3D-printed residential properties built by Icon. Alongside the agreement, Wells Fargo is offering a 50 basis point discount for buyers on mortgage rates used to finance an Icon home purchase. 

The news was first reported by CNBC.  

"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 prime time," Icon CEO Jason Ballard said to the cable network on Tuesday. 

Utilizing large robotic devices to assemble the walls of a home, Icon printers eject a proprietary low-carbon concrete blend in a uniform manner to construct properties with reduced cost and labor compared to stick-built houses, the technology provider claims. With Icon tools already erecting military housing units and commercial projects, 3D printers hold the potential to efficiently accelerate homebuilding in a manner that addresses current market constraints, according to Wells Fargo.   

"The housing market is looking for new ways to increase supply and improve affordability, and 3D-printing technology is now proven enough to do both at scale," a bank spokesperson said in a statement to National Mortgage News.  

Founded in 2017, Austin, Texas-based Icon is expanding on a previously established relationship with Wells Fargo, after serving as a partner to its philanthropic division in developing 3D-printed homes for homeless communities. 

"This next step builds on that work by connecting what they're creating with accessible mortgage financing," the Wells Fargo representative added.

"As adoption grows and confidence builds, we expect 3D-printed homes to become another viable option that fits within traditional mortgage lending," they said.

Earlier Icon projects with the mortgage industry

While the technology to build homes has been available for some time, 3D construction has thus far found only limited acceptance within home lending circles. Among questions surrounding financing of the properties were risks related to future housing appreciation, which Wells Fargo leadership allayed in the CNBC interview. 

"We don't have any reason to believe that the long-term value for these homes will be any different from homes that are built based on traditional construction technologies," said Serhat Oztop, CEO of home lending at the bank.

Icon had previously entered into a separate partnership with homebuilder Lennar in 2023. In addition to assisting with construction of a 3D-printed home community in Georgetown, Texas, totaling 100 properties, the builder's mortgage affiliate financed the sale of the units. 

Currently, Icon is also behind the construction of a series of residential properties within Austin, as well as the city of Wimberley, located southwest of the Texas capital, an Icon spokesperson said. 

Alongside home construction, Icon is seeking to boost production of its 3D printers and make them available to the developer community. On Tuesday, the company simultaneously announced it would begin selling its newest Titan printing device to building companies for $899,000. 

Wells Fargo said it would offer business financing to interested customers looking to purchase the tool, a welcome sign of institutional confidence in the technology, Ballard added. Icon's CEO also said Titan leasing options would be available.