The term prefabricated home is actually used to describe two distinct methods of construction. Prefab homes can be built in a factory before being delivered to site by a truck in one or more sections or can refer to kit homes built by an owner builder.
Not to be confused with mobile homes, manufactured homes are permanent once delivered to site, fixed to piers and connected to utilities.
Manufactured homes go by several different names depending on what they are intended to be used for and which builder you speak to. They can also be referred to as modular homes, relocatable homes, prefabricated homes or factory built homes. For example, in the USA they are commonly referred to as either single-wides or double-wides depending on if they can be transported to site in one section or two.
However, a Manor Country Home is a manufactured home that is factory built and once on site they are permanent structures just like any other house. Because of this manufactured homes can be financed.
It is extremely important that your contact at the bank understands the difference!
Be sure to make a point of stressing that the home is not relocatable, mobile or kit home, but in actual fact a fully completed home by a licensed builder. We have always maintained that the lender is welcome to visit our manufacturing site located on the Central Coast NSW if they wish to witness how the process works.
From recent experience, we have had clients tell us that their bank will not lend on our homes, even though we are currently building for other clients who have obtained a loan through the same bank.
Can funds be released prior to the house being onsite?
The answer to this question varies depending on your situation. The majority of lenders have strict lending guidelines that will not allow them to release funds before a certain stage – after the home is affixed to the piers, connection to services, or in some areas before a certificate of occupancy (or equivalent) is issued from council. This means that they will only give you the money to build once the house is completed! There are loans available from some lenders that will allow some of our customers to release funds prior to the house being on site.
If you have equity available in your land or another property then lenders are often able to lend up to 95% of the land value as an equity loan. If you do not have equity or a guarantor then we can arrange to build your home as long as we have a secure contract and guarantee from your bank that they have approved your loan and will make the payment once the home is on site.
With this in mind, we’d like to remind you that help is always at hand, and quite often a quick phone call to us could make all the difference. We are able to discuss and explain any requirements with your preferred lender and look forward in assisting you with realising the dream of your new home!
Aussie Home Loans are a trusted provider who can work with you to finance a Manor Home solution. Contact Manor if you would like any referrals or details on this lender.
If you are hunting for property, but still haven’t found the perfect site, check out Realestate.com.au. This website hosts alot of Realestate Agency listings, so this is your best bet for finding land in the location of your choice. Contact Manor for more information about the zonings and bushfire levels in the areas of your choice.
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NOTE: We are not a lending institution or broker. We cannot and do not give you financial advice. All the quoted scenarios above are based on our experience and feedback from clients with the aim of being helpful to you and we do not make any guarantees whether expressly or not as to your own ability to obtain finance. © Manor Group 2015.