How to finance the purchase of a prefabricated house
These are difficult times to buy a house . Without any economic security and with the banks tightening the conditions to give a mortgage, buying a flat is a complicated task, despite the drop in prices.
But in Spain we have a desire for homeownership. It is in this context that many can bet on a prefabricated house. As Fotocasa explains, among the main reasons that encourage this decision are the speed of installation and its low price .
In Spain it is a new market, which entails a certain legal vacuum. However, before purchasing a prefabricated house, several factors must be taken into account, among them, and fundamentally, if your purchase can be financed .
Unlike other countries such as the United States or Canada, where this type of housing is common, in Spain the market for prefabricated houses is still novel. This lack of tradition leads to a certain legal vacuum around these constructions that undoubtedly affects their financing.
The characteristics of prefabricated homes, which can be dismantled and moved, make them be considered by the banks as personal property and not as real estate . Obtaining a mortgage loan for a prefabricated house is, therefore, more complicated than for a “traditional” house, but it is not impossible. It can be obtained if:
- There is an execution project.
- There is a building license.
- The house is “anchored” to the ground in a consistent manner.
Therefore, in most cases, only houses with a project approved by the college of architects can be financed by mortgages and can register correctly in the property registry. Those constructions that are carried out on rural land and can not be registered as a home in the property register, can also obtain financing although not through mortgage loans , but through credits or personal loans or through other types of guarantees.
The majority of the companies specialized in this type of housing have agreed upon financing agreements with different banking entities . These firms, in addition, are usually responsible for all mortgage procedures.
But, what is the best mortgage for this type of housing? Among the most advisable options would be what is known as a self-driving or self-construction mortgage . It is a mortgage product that offers financing that can reach up to 80% of the value of the land and 80% of the home you want to build, even if it is prefabricated.
Obtaining a mortgage for a prefabricated house is more complicated As opposed to traditional mortgages, not all the loan money is delivered at one time, but fertilizers are made as the work progresses, that is, as the owner certifies the work (and it is verified by an appraiser of the bank) the entity is delivering the money with a grace period in the amortization of the capital.
There are several entities that offer this product. BBVA has a self-propelled mortgage in its portfolio that finances up to 100% of the value of the home with a repayment term of up to 40 years and offers the possibility of suspending up to 2 installments per year if an unforeseen event arises.
- Garoza Housing
View of prefabricated and industrialized Garoza housing. (HerrerosArquitectos)
“> Garoza House