The acquisition of cheap prefabricated houses has multiplied in recent years, driven by the rise in the price of traditional housing. This is one of the advantages, but there are more, such as the speed of installation compared to brick ones, they can be built on any developable land and are more sustainable. Additionally, any model can be customized to taste prior to construction. The cheapest are around 10,000 euros (although there are some auxiliary houses for the garden that are even cheaper), but there are also more expensive ones, for which you can request a mortgage from the bank by meeting the required requirements.
For example, for a price similar to what you can buy a small apartment in a city, you can purchase land and finance a prefabricated house produced industrially with wood, concrete, PVC or steel. They are the three main materials and are even present in all houses associated with different parts of the structure. The cheapest are the wooden ones, but they are the ones that require the most maintenance.
Requirements to apply for a mortgage for a prefabricated house
The first requirement that any bank or financial institution will request to study the financing of a prefabricated house is that it be considered real estate, that it has a fixed location and cannot be transported from one place to another. That is, it could not be requested for a small shed or house that can be moved from one piece of land to another by road. In addition to this:
It must be located on developable land, which is thus delimited in urban planning, as land available for urban growth. It must have a foundation that anchors it to the ground. It is necessary that the project be supervised by the College of Architects and have a municipal license, like a traditional home. The house must be registered in the Property Registry. If it is installed on rustic land and is not registered, the possibility of applying for a mortgage is lost. It must comply with European regulations that regulate energy efficiency in the home. The import must exceed an amount of around 50,000 euros (although it depends on the entity) to study the mortgage and be able to grant it. That the owner passes the economic solvency study.
What type of mortgage is granted for a prefabricated house?
Once the previous requirements have been met, you should keep in mind that the process is somewhat more complicated than for a traditional house. This is because it is necessary to propose a property project and it is common for entities to offer a self-promoting mortgage. They are designed to finance the construction of the home, and in some cases, also for the land on which it will be built. But it is essential that the lot be property of the loan holder.
In self-developer mortgages, the money is received in installments as the work progresses. For example, 50% of the land appraisal, an amount to cover construction costs as the house is developed and a final figure received when the completion certificate is issued and the first license is obtained. occupation. .
Among the most interesting self-promotion mortgages are the Credihalet Fixed Mortgage from Bankinter, with financing up to 80% and a maximum repayment period of 30 years. It has a grace period of 18 months, that is, you get a pause in the payment of principal or interest for a period of up to a year and a half.
The Caja Rural Self-Promoter Mortgage has the advantage that there is no need to pay for the notary, registry and agency. And the Self-Developer Mortgage from Banco Santander that covers 100% financing of the work execution budget (limited to 70% replacement). The maximum repayment period for this mortgage loan is 30 years. Finally, the BBVA Self-Developer Mortgage requires “own resources” at the time of formalizing the operation, at least 30-40% of the total investment, depending on the type of building.
What to do if the requirements to apply for a mortgage for a manufactured home are not met?
If we want to acquire a small house that costs 10 or 20,000 euros, a shed to be placed on private land that is not developable or that is not anchored to the ground, for example, we can request a credit or personal loans to finance the payment of a prefabricated house. . . In any case, it would be considered movable property.
The main advantage is that we would save some costs that normally come with home mortgages, such as formalization costs, the notary, the Property Registry or the appraisal, among others. The drawbacks are that, normally, the repayment period is much shorter, usually around a maximum of 10 years, and that the interests are higher.