How Quickest Built Home Finance Can Work For You
When it comes to financing quickest built kit homes, modular prefab, container Homes and any form of “relocatable” homes, Australian customers have in the past had to pay cash or apply for a substantially higher interest rate, as the lending criterium for these popular smaller homes is becoming hugely popular as an alternate affordable housing source.
Around the world, lenders have had to rethink and adopt a much more affordable repayment method for these newly discovered would be homeowners.
Where before bank managers would decline or deny loans for kit homes in general, because of the process payments payable to the kit home manufacturer, which usually are in stages:
- Deposit before the commencement of manufacturing
- Progress payment for the start of the manufacturing
- Final payment before being delivered to the owner’s building address
The excuse from the bank was that the house was in transit, so to speak, between the factory and the building site, and therefore didn’t provide security for the loan, until the kit home was built!
This would often become a problem when customer borrowed money for the house and land and only provided a minimum deposit either through the first home owner grant scheme or simply didn’t have enough equity in the land to cover the loan for the kit home.
Therefore the cruel verdict “We don’t finance kit homes” and as such the myth that no one would lend money to tiny home and other smaller homeowners, when applying for such home loans!
But fortunately time has changed, especially when affordability housing is such a major market around the world, and lenders have had to rethink their narrowminded lending criteria, and adopt much more equitable lending facilities, to “cash” in on a huge niche market, namely Tiny Homes – Kit Homes and Relocatable modular home financing.
Quickest Built Homes Finance has dealt with many forms of private lenders in the past, simply because no one else was interested in supplying home financing to their many varied home models and designs.
As such we have a number of willing lenders who specialize in financing the smaller affordable housing market, they simply tailor make finance to suit customer’s demand and budget, with a reasonable interest rate applicable, but of course, with all home financing, there have to be relevant security in both home and land content.
Finance Tips Do’s & Don’ts
QuickestBuiltHomes have tried to help you to the “Finance starting line” by sharing the most commonly asked questions about finance. We offer genuinely general common answers to keep everything as simple and easy to understand.
It is of most importance that we DO NOT offer any unauthorized financial advice to potential customers and borrowers.
When applying for finance
- You must keep all inquiries to a minimum (less than 3), as most finance companies will decline loans after 3 inquiries; they don’t like a busy credit file.
- Be straight up front and always make sure you supply the correct information (including any current credit).
- In most normal cases, lenders need at least 3 years’ job and residence history, drivers license details, date of birth, current address, payslips, and proof of current address. However, some of these things will only be required at sign up once the loan has been approved. Failure to provide them could result in the finance not proceeding.
- Just a little tip, it always helps to apply for finance before changing your job or residence, not after.
Defaults and bad credit rating matters
“Can I still get a home loan, If I have defaults?”
The short and direct answer is NO – but it does make it harder and limits the lenders that we can put it to.
However, it will depend on how many defaults and with whom (i.e. utility defaults or finance company defaults). How long you have been in your residence is also relevant (as finance companies dislike instability). As far as the lender’s concern, instability & instability can lead to defaults. If you do change address always notify the lender, phone company and public utility etc. as this will help to ensure you don’t miss bills and will alleviate problems down the line. Once a default is on your credit file it will stay there for five years whether it is paid or unpaid. If you have defaults on your credit file you should pay those as soon as possible, lenders like to see that where there was a mistake or problem you fixed it quickly
Hope this clarifies your question(:
Loan Repayments Trouble
If at any stage you have trouble paying your loan always keep the finance company informed. Good communication makes a difference. Discuss the matter with the finance company and they may be able to help, they may be able to extend your loan, minimizing the repayments or offering re-financing on other terms.
Tips for a Good Credit Rating
- Make sure you pay your loan on or before the due date. If you have a credit card with a limit, and it’s due on a special day and you pay it on the following day (because that’s when you get paid) that will give you a bad credit rating – so always make sure make your payments on time.
- To get a good credit rating, a loan should be in place for at least 12 months to establish a strong loan history.
- If you adhere to these factors you will be well on the way to having and establishing a sound credit rating history.
- Our lenders aim is always to get you the most competitive home loan, based on your personal circumstances and financial past behavior from our panel of safe lenders.
You can arrange finance online with Don Watts from Tiny House Finance, he specializes and has been involved with tiny home lending since 2018
Or Call Don on 0411 648 018 or Direct Line (07)5538 5329
