Transportable Home Loan Guidelines

Posted by Transportable Homes on February 23, 2012 under Transportable Homes | Be the First to Comment

Home Loans for Transportable Homes

This information is applicable to homes arriving on your property having been constructed at another location; including transportable homes, granny flats, pre manufactured homes, relocatable homes, prefabs, modular homes and portable homes. The majority of lending institutions have requirements that include (but not limited to) the following:

Security for a Transportable Home Project

Less than 50 hectares in size.

Zoned as

  • residential
  • rural
  • rural / residential

Commercially zoned properties are not favoured as good security in some cases.

Hobby farms are generally accepted as good security but not farms.Transportable home loan

Home loan providers like their security to have access from a public road and have the capacity to be connected to power.

Temporary housing that could be moved is not a preferred option for lenders, but each case is assessed on an individual basis.

Lease hold land is not acceptable security eg: Over 50’s Lifestyle Village with a site agreement.

Freehold, torrens title, community title, strata title retirement or over 50’s village homes can have a loan of up to 70% of the value.

Employment Requirements

As long as you have one day in your current employment but a proven track record of employment within the same industry (to provide an account of stability), or 6 months in your current job with no track record in the industry.

All income sources are assessed on a case by case basis including casuals, contractors, pensioners, disability pensioners, people on family benefits, investors, commission-based incomes and part-timers.

People self-employed for over 6 months with a record of working in the same industry are viewed more favourably. However, people who have been self-employed for 2 years should be able to secure a loan relatively easily. Loc doc facilities may be available  up to 80% of the property value.

Guarantors

Real estate security must meet the above mentioned guidelines. Second mortgages can be used can be used as security but it depends on the amount of equity.

In some cases the guarantors income can help to service the debt. In this case the guarantor will need to remain until the borrower is no longer dependent on the guarantors income to pay the loan.

In most cases a pensioner’s home can not be used as a guarantee.

Interest Rates

Apart from ‘the big four’ major banks, there are many smaller financial institutions who have the capacity to lend for transportable homes building projects at comparable interest rates. They may also have the capacity to release funds prior to building completion (progress payments).

Progress Payment for Transportable Homes

A financial lending institution can only release funds as progress payments for building contractors reaching project benchmarks before the home is completed and on site if:

  • The owner has enough equity in the land or another property. Some lenders will release up to 95% of the value of the land prior to the house being delivered to site.
  • A guarantee can be provided by a person who has equity in real estate that is willing to secure the loan allowing first home buyers and people with no deposit to increase their lending security.

 

 

 

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