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How do you finance a Transportable Home?

The key things you need to know

Getting a home loan for a transportable home is not as straightforward as it is for standard property or even a construction loan for that matter.

I've been fielding a lot of enquiry on this topic lately, especially since Lee Turner from local Cambridge Firm "Turner Road Architecture" built this beauty of a transportable home. Check out the link on Trademe to see for yourself.

Or you can contact Lee and the team to find out more. Here is their website.

You can also get excellent value by relocating an existing home but that provides a few more variables for you to manage.

The key things to know for financing a Transportable Home are listed below. All of them pose hurdles to cross but we can work with you to ensure that you're prepared and we're providing well planned information for any lender to give you the best chance of getting approved.

  1. The bank will only lend on the land (usually 80% of the value) until the new house is on site with services connected. This means you'll need to have the funds to pay for the transportable home or arrange for a payment plan with the seller which allows you to make final payment once the house is serviced.
  2. Consider the other costs - Your job is not done as soon as the house is on the new site. We'll need to provide quotes to the bank for transporting and connecting services along with any redecorating, landscaping or a garage if it is required.
  3. Staged payments - Like a construction loan the bank will advance funds to you depending on the stage your relocation is at. They will also want to hold some money back until Code Compliance has been issued so it's important that we put a budget in place.

There is no doubt that a Relocatable is a great way to increase your equity and get an excellent home for a much cheaper price than you would normally pay.

However it is important to make sure you do your planning and we can work with you to let you know what finance options you have for your personal situation. You may be able to use equity in an existing property to get your new home relocated which gives you much more flexibility. We've also got partners in the related trades which can help to smooth the process for you.

If you would like to discuss the option of buying a relocatable home and how you might finance it then please feel free to get in touch

Adam Thompson
Mortgage Adviser
My Mortgage
Cambridge, Matamata, Te Awamutu, Hamilton, Auckland