Financing your prefabricated home

Of course! You can apply for a mortgage to build one of our modular homes, as they are considered real estate because the house is anchored to the ground and complies with the Spanish Building Code (CTE). Therefore, banks can finance modular homes. You can read more on our blog. "What permits are needed to install a prefabricated house?"

No. A few years ago, due to a lack of understanding, some banks presented more obstacles, but that's very rare now. Regarding financing costs, it's possible that financing the construction itself is cheaper because the construction time is shorter, and therefore the grace periods offered for self-build projects will also be shorter. Appraisal costs are also likely to be lower, as construction progresses more quickly. Thanks to this, financing can be more affordable than financing a traditional home.

The most common option is to apply for a self-build mortgage. In this case, you, as the developer (owner), can request financing from the bank to build the modular home and sign a construction contract with Modular Home so we can carry out the construction.

The key difference lies in the timing of the financing: a traditional mortgage finances a property that has already been built; however, a self-build mortgage finances the construction process itself. With a self-build mortgage, the bank disburses the funds in stages (for example, after presenting construction milestones such as foundation, structure, and other progress), while monitoring the use of the money.

It depends on the financial institution, but generally you'll need to demonstrate financial capacity (stable income), and in many cases, own a plot of land or have the ability to purchase one. You'll also need to submit project documentation along with a budget, building permit, and construction contract. We can help you gather and prepare all these documents to submit a strong application to the bank.

Because it's an industrialized, prefabricated system, some banks may require additional guarantees. Our system complies with the Spanish Building Code (CTE), and since the house is fully anchored to the ground, we'll have no problem proving this. Furthermore, we offer complete traceability of the MH System® with manufacturing photos, construction progress reports, and experience, along with our quality seals and system certifications, which will give the bank confidence.

It's not a problem: even if you're new to self-building, we'll guide you through the entire process. Our technical and financial team will design the project, prepare the documentation, obtain the building permit, and ensure all the necessary paperwork is available to you. This way, you can access a mortgage despite having no prior experience, because we work as a professional developer for you.

This can happen, depending on your financial situation or your bank's policies. In that case, we encourage you to speak with our sales team: we'll help you explore other financing options or feasibility studies for your project.

We'll guide you step by step:

• First, we'll prepare a detailed quote for the modular home. Once you review and approve it, you can apply for a mortgage pre-approval with your bank.
• Next, the construction project is designed and the permit is processed at the City Hall. Once the permit is granted, the documentation is sent to the bank.
• When the bank approves the mortgage, you will sign the terms as a self-builder, and also the construction contract with you, to start the payments and the execution.

Throughout the entire process, our sales department will advise you and help you with the most complex procedures.

As with any self-build mortgage, there are certain risks: if construction is delayed or there are changes, financing costs (interest) may increase, which can raise the final cost. To mitigate these risks, Modular Home prepares a fixed budget and we will monitor the construction timeline to minimize unforeseen events and present the bank with a clear and realistic plan.

Yes, we offer personalized advice and the support of several banks that already know how we work, which will make the process easier.

Yes, while we can't guarantee that a specific bank will approve your mortgage (it depends on many factors), our finance department works with clients and lenders to facilitate the process. We can advise you on which banks have shown interest in mortgages for self-builders and help you prepare a competitive proposal.