March 13, 2025 by Michael Cullinan
Kit and transportable homes are becoming increasingly popular as an affordable, customizable, and efficient housing solution. Whether you’re a first-time buyer or an investor seeking a cost-effective property, understanding how to finance these homes is essential. As a mortgage broker, I’m here to guide you through the key considerations when purchasing and financing a kit or transportable home.
What Are Kit & Transportable Homes?
These homes are pre-designed and typically manufactured off-site before being assembled on your property. They come in various styles and sizes, from tiny homes to full-scale family residences. Buyers can choose between pre-cut or modular designs, offering flexibility in both budget and construction time.
Benefits of Kit & Transportable Homes
- Affordability – Lower labor costs and bulk material purchasing make them more cost-effective than traditional builds.
- Faster Construction – Pre-cut materials allow for quicker assembly, reducing labor expenses and minimizing delays.
- Customization – Many manufacturers offer a range of floor plans and design options for personalization.
- Energy Efficiency – Many models incorporate eco-friendly materials and designs that enhance sustainability.
Challenges in Financing Kit & Transportable Homes
Unlike traditional homes, securing financing for kit and transportable homes can be more complex due to:
- Lender Restrictions – Some banks and lenders classify these homes as higher-risk and may have stricter lending criteria or refuse financing altogether.
- Construction Loans – Many purchases require a construction loan, typically disbursed in stages through “progress claims” as the home is built.
- Valuation Concerns – Since these homes are not built on-site from the ground up, lenders may require additional assessments to confirm their value and compliance with building codes.
How to Secure a Mortgage for a Kit & Transportable Home
- Work with a Specialist Lender – Some lenders specialize in financing non-traditional homes. A mortgage broker can help connect you with the right one.
- Have a Detailed Budget – Outline construction costs, land purchase, labor, and other expenses to improve your chances of loan approval.
- Obtain a Fixed-Price Contract – Many lenders prefer a fixed-price contract from a registered builder to ensure construction costs stay within budget.
- Ensure Compliance – Make sure your home meets local council regulations and building codes, as this impacts both financing and resale value.
Is a Kit & Transportable Home Right for You?
If you’re looking for an affordable and customizable housing option, a kit or transportable home could be an excellent choice. However, navigating the financing process can be challenging. Working with a knowledgeable mortgage broker can help you secure the best loan options available.
At Mortgage Choice, we take a personal approach that is tailored to your own situation
Please call me on 0447 528 116 or email me at michael.cullinan@mortgagechoice.com.au
