Modular Home Loans
Perth Modular Home Loans
With incredibly short completion times (we’re talking 10-12 weeks), modular homes are the perfect solution in a housing market where demand is surpassing supply. This is why banks are starting to offer modular homes loans, which is fantastic news for those wanting to get into their own home. But… What exactly is a modular home loan and what should you look out for when choosing a modular home loan? Below we answer these common questions, outlining why these home loans are a game changer.
Timatanga Modular is a Perth based family owned company delivering high quality commercial, residential and modular builds across WA. Backed by over 40 years collective experience, matched with meticulous planning, efficient processes and quality materials, we deliver an exceptional standard we’re proud to put our name on. Here is what you need to know about modular home loans.
What are modular home loans?
A modular home loan is a type of construction loan specifically designed for financing homes built off-site, then transported and assembled on the property - AKA modular homes.
In the past, securing finance for modular homes has been challenging as banks have been hesitant to finance loans for this type of construction. But as modular homes have gained in popularity, given they can be completed much faster than traditional builds, finance institutes have had to step up to the demand.
Whilst modular home loans are typically structured as a construction loan, the difference is that you can now access progress payments throughout the build (depending on the loan, this can be up to 60-80%) of the total contract price. This is a game changer as previously, buyers have had to find a way to cover the majority of costs upfront. Final Progress payments are made when the modular home is delivered to site, assembled and connected to all services (eg water, power, gas).
What should you look out for when choosing a modular home loan?
When choosing a modular home loan it is important to get a good understanding of what the conditions and criteria are for progress payments, as well as final stage payments and what percentage these payments can be. By talking to both your builder about their processes and your broker about financing, you can get guidance on aligning progress payments with specific construction processes for your build. Pre-approval for a modular home loan will also ensure a smoother and more streamlined process.
Matthew Brown from Alltime Investments specialises in modular home loans and works with Timatanga Modular clients to help them secure finance for their modular homes.
Brown says “A broker that specialises in modular home loans will help you to understand what home loan options are available for you and will be able to compare loan options ensuring you have the best loan suited to your needs. Having a broker that understands modular home loans as well as being familiar with the modular home building processes of your chosen contractor is also beneficial to help make the process seamless.”
Find out more about Modular Home Loans in Perth
Timatanga Modular builds modular homes right across Perth and also anywhere in regional Western Australia. By refining and streamlining our construction processes, we can build high quality homes in as little as 10-12 weeks (6-8 weeks for 1 bedroom modular homes).
If you’d like to know more about our modular homes, the modular home building process and your modular home loan options, contact us today.
