Contact your lender
In our experience here at Hoek Modular Homes, we have found the ideal finance scenario occurs if you approach your Lending Manager as early as possible to indicate to them the type of building you propose to purchase. By doing this early, you can illustrate how the construction process is conducted and how the finished product is a new home, no different to any other new home in the marketplace.
Be sure to make a point of stressing that the home is not a relocatable home, mobile home or kit home, but in actual fact a fully completed home by a licenced builder. (Kit homes are almost impossible to finance. Hoek Modular Homes will construct and install a fully finished home, not a truckload of materials)
We encourage your lender to visit our manufacturing site if they wish to see how the building process works. From recent experience, we have had clients tell us that their bank will not lend money for our modular homes, even though we are currently building for other clients who have obtained a loan through the same bank.
Can the 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, connected to services or in some areas before a certificate of occupancy (or equivalent) is issued from the 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 onsite. 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.
Getting approved for a loan
We acknowledge that lending institutions in the marketplace often find that our modular homes are outside of their relevant lending guidelines. As everyone has different circumstances, it is important to remember that the funding step to purchasing a home always presents a hurdle, irrespective of the type of home you choose to build. It may seem a daunting experience, but be open and patient with your lender and this will help keep the process as smooth as possible.
With this in mind, we’d like to remind you that help is always at hand – you are welcome to call Hoek Modular Homes and chat about your situation. We’re able to discuss and explain any requirements with your preferred lender and look forward to assisting you with realising the dream of your new home!