Can You Get a Mortgage on a Prefab House

Prefab homes are considered an attractive way to get onto the property ladder. But can you get a mortgage on a prefab house? Yes – but you’ll need to go through slightly different channels than when getting a conventional home loan. Our guide explains how to get a mortgage for a prefab home, the process of finding lenders for financing manufactured homes and everything you need to know when you buy a prefab house.

Are There Mortgages for Prefabricated Houses?

Yes, mortgage providers are available for a prefabricated house. The loans available might be slightly different from a conventional mortgage, and you may need to apply for additional financing.

The range of lenders offering mortgages on prefab homes might also be smaller than for brick-and-mortar properties. However, you can still finance a prefab home as long as you take a few critical considerations on board.

How to Make a Prefab House Mortgageable

Some lenders offer conventional mortgages on prefabricated houses as long as they meet specific requirements. Here’s how to get the best offer.

  • Ensure that the property meets the latest building regulations and standards. You can make it easier for yourself by choosing top-quality manufacturers and builders. If you can provide evidence that the construction meets the latest standards and that professionals have installed it, a lender may consider offering you a standard mortgage.
  • Purchase the land you’re building on. It’s much easier to finance manufactured homes if you buy the land. If you’re simply leasing the land, it might be harder to get a loan.
  • Support your financing with a construction loan. Construction loans can sometimes transition to permanent mortgages after the house is assembled. Otherwise, you might be able to obtain a construction loan to finance some up-front costs before applying for a conventional mortgage upon completion.
  • Consider your options. Some lenders offer a self-build mortgage. This would include prefabricated and mobile homes, although it may require a larger deposit.

If you’re wondering how to make a prefab house mortgageable for lenders, remember that:

  1. A manufactured home must be constructed to a standard comparable to a brick-and-mortar property. The property’s probable future value must be worth the lender’s investment.
  2. You must be able to provide evidence that you can make repayments during and after the construction process.

If you can meet these requirements, you stand every chance of finding a lender offering favourable mortgage terms.

What Type of Mortgage Do I Need if I’m Building a Prefab House?

The right loan can make a massive difference to your finances going forward. The type of loan you can get depends on how your property is constructed and the local lending regulations. Different loans might be available in the U.K. from those available in Spain, for instance.

Here are the three types of loans you can get for non-standard construction properties. Note that availability and rates will depend on your credit score and credit history, as with all mortgages.

  • Standard mortgage. If you can prove that the building is well-constructed and will hold its value, some lenders might consider you for a standard mortgage.
  • Self-build mortgage. Some lenders offer this type of loan, which usually comes with higher interest rates than a standard loan. This is to secure the lender against the uncertain construction of the property.
  • Construction-to-permanent loan. These are sometimes interchangeable with self-build mortgages. However, in this case, the mortgage terms allow the loan to change from a construction-specific loan to a permanent one upon successful property construction.

You’ll generally need a slightly higher down payment and may face higher interest rates with self-build options than standard.

Non-Standard Construction Mortgage Lenders

Some banks don’t offer loans on non-standard construction properties. You’ll typically need to find an alternative lender: it’s worth looking around, as some lenders offer prohibitively high-interest rates for self-build projects. Projects with stronger long-term value are attractive to a wider range of lenders.

Can I Get a Mortgage on a Non-Standard Construction House?

Yes – most often a self-build mortgage. However, you might be able to apply for a standard loan if you can demonstrate that the modular home is constructed to high standards. You may need a construction loan to finance the project in the meantime.

Can You Get a Mortgage for Land and a Modular Home?

A land mortgage is typically separate from a construction loan. Can you get a mortgage on a prefab house and a land loan simultaneously? The answer is yes, but you should consider whether you can afford to repay both loans simultaneously if you’re buying land intending to build immediately.

Mortgage on Flat-Pack Home

Mortgages are available on all types of flat-pack and manufactured homes. Properties made from cheaper materials will typically command higher interest rates.

Prefab Mortgage Lenders by Region

Here’s a rough guide to finding prefab lenders in different regions.

United Kingdom

How to make a prefab house mortgageable in the U.K.? The easiest way is to choose your manufacturing and construction firms wisely. U.K. lenders look favourably on properties that demonstrably hold their value or appreciate.


The primary constraint on prefab houses in France is planning permission for larger buildings. If you’re buying land, have it thoroughly checked by a legal expert to ensure that you can build a modular home that meets your needs.
Self-build loans are available through some French lenders, though not most major banks.


Prefab homes in Spain have similar rules to France. Planning permission constraints for larger buildings, when buying land, make sure to get legal experts who have experience in dealing with land purchases.

When you’re asking how to make a prefab house mortgageable across Europe, the most important consideration is: don’t buy the land until you know what you can build on it. Speak to local experts and find out what financing is available.


Do prefab homes keep their value?

If you’re wondering how to make a prefab house mortgageable, the best advice is to use top-notch construction and manufacturing firms. This will give your property enduring value, whereas a cheaper build might depreciate quickly.

Is prefab cheaper than building?

Yes – prefab houses can be significantly cheaper than traditional construction methods.

What do I need to know about buying a prefab home?

Don’t assume that just because you’ve bought land, you’ll be able to build on all of it. Learn local regulations thoroughly before making a purchase. Use high-quality materials that will give your prefab home enduring value.

Final Thoughts

Can you get a mortgage on a prefab house? The answer is yes, but the type of mortgage available depends on choosing the best construction companies and manufacturers for your home.

The greater value a lender sees in a property, the more likely they will lend. Keep this rule in mind, don’t borrow beyond your means, and you may just build the home of your dreams.

If you’re ready to turn your prefab dream into reality, connect with our network of prefab manufacturers to get personalized quotes for your project. Fill in the form now to start the journey toward your dream home.

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