Finance Securing finance to build your home should be a simple and stress-free process. However, it’s important to be aware that when applying for finance to build a modular dwelling. There are additional steps involved compared to arranging finance for traditional onsite build. Most lenders finance modular home construction differently to traditional home constructions. This is mainly because lenders consider an on-site constructed home as a potential asset, they can seize during the construction phase if your finance suddenly falls through. However, with a modular build, a lender is unable to seize anything in the event that finance falls through because the dwelling is being constructed in our factoryFeel free to reach out to our friendly team for recommendation on lenders that understand the modular build process. Here are a few key points to ensure you communicate with your bank when financing a modular home: 0 1. Contract Type When building a modular home with Asset Cabins and Homes, you will receive a fixed price contract.The agreed value will be the final amount charged at the end of the project, without variation unless otherwise specified.Lenders also like to know that a Final Building Certificate will be secured by a registered builder. This is because they’re more likely to provide finance if you’re entering a contract to build a fully completed home rather than a built to lock-up. Be sure to specify this detail during your early discussions to avoid any misunderstanding. 2. LVR (Loan Value Ratio) Some banks will incorrectly classify a modular home as a ‘kit home’ in which case they may only loan up to 60% of the value of the house.This can be overcome by explaining that a modular home is vastly different to a kit home (see ‘Home Classification’).Bank managers and lenders who understand this difference will often loan up to 80% of the home value, in line with standard home loan agreements. 3. Payment Schedule Asset Cabins and Homes we can work together with your bank to arrange a varied payment structure that meets their requirements.If your preferred lender would like to discuss this further, please pass on our contact details and encourage them to get in touch. 4. Builder Details When using Asset Cabins and Homes, your home is built by a Registered Builder, not as an owner builder which is often the case with a kit home.This means that the finished product must comply with the same standards and requirements as a home built on-site.Asset Cabins and Homes are registered to build homes in QLD, NSW & NT and have nearly 30 years’ experience building high quality homes.Our homes come with an industry leading 8-year builders warranty, providing both you and your bank with peace of mind. 5. Approvals & Service Connections Talk to us today about your approvals and external service connections.It is advisable to get the costs of these items together before your finance application or simply ask us to do it for you!See our starter pack options relevant to your location as this process will help confirm the value for your project. 6. Home Classification By choosing to build a modular home, the finished product will be a beautiful new home that is ready to live in. It can be a good idea to explain to the bank that you are building a fully completed modular home (not a kit home), which is built to the same standards as homes built on-site. In fact, our modular homes are built stronger to endure transportation requirements and ensure they arrive in perfect condition.It’s also important to note that your modular home is classified as a permanent structure that is fixed to the site. Some banks may incorrectly perceive modular homes as mobile due to the nature of the construction and transport process however this is simply not the case.The term ‘modular home’ simply refers to an alternative construction method, with the end result being no different to homes built using traditional construction methods. We’re here to help! At Asset Cabins and Homes, we’ve helped dozens of homeowners secure finance to build their dream home.If you have any questions regarding the above information, please don’t hesitate to contact our friendly team who will be more than happy to help.Alternatively we welcome your Lender to contact us to obtain any specific information they require to help progress the approval of your finance.