Why is it hard to get a mortgage for my Modular Home?
Don’t be discouraged – You CAN get a mortgage to build a modular home in Ireland. However, that will depend greatly on the bank.
You see, modular construction is pretty new in Ireland – with the first state-sponsored homes built in 2016. The non-traditional construction of modular homes and a general lack of Irish data on the resaleable value of these homes, causes some banks to treat them as a depreciable asset. Banks typically only accept traditional brick/concrete/stone finishes as security.
As a result, most Irish banks are unwilling to add them to their portfolio and refuse to offer mortgages for modular homes altogether.
Buying a House in Ireland: A Step by Step Guide by a Builder/Solicitor
So What Other Options do I Have?
The good news is that I was able to reach out to local builders and I am pleased to report that some banks are willing to provide mortgages as a result of their partnerships with some reputable builders.
- I was able to confirm that BuildWright, Ireland’s premier builder of concrete modular homes, has a partnership with Permanent TSB to grant mortgages to their clients.
I would recommend that you go to your nearest PTSB branch and have a conversation with them.
Best Finance Options for Mobile Homes & Log Cabins in Ireland.
1. HUMM Finance
HUMM Finance is a Buy Now, Pay Later service that allows customers to spread the cost of purchases over time through installment payments.
They are a very trusted service and they partner with several modular home and log house suppliers here in Ireland.
From my research, they offer finance up to 30,000 euros for most tiny homes and log houses.
Simply speak with your chosen builder to find out if they are partnered with HUMM.
To find out more about HUMM Finance, you can visit their website HERE.
2. Loanitt
Loanitt is a lending broker and financial technology (fintech) company based in Ireland. It offers an online platform for loan comparison and application.
- For context, they have an impressive 4.9/5 stars on Trustpilot from over 1000 reviews!!
Users can compare various loan options from different lenders, including personal loans, car loans, home improvement loans, and more.
Additionally, Loanitt provides users with tools and resources to make informed decisions about their borrowing, including loan calculators, guides, and educational content on personal finance topics.
How Do I Apply for a Loan on Loanitt?
- Visit their website HERE.
- Click on the ‘Apply‘ Button
- Pick any options from the below drop-down list
- Follow the steps after that and submit.
3. Credit Union Secured Loan
Credit Unions are the backbone of our communities for small loans. I have turned to my local credit union a few times when I couldn’t get a bank loan.
Taking a secure loan with credit union would increase your chances of getting the finance needed to pay for your home. Credit unions can grant up to 75,000 euros for various log cabins, timber frame homes or home improvement projects.
Simply use the Loan Application on the Credit Union website: https://www.creditunion.ie/enquire-about-a-loan/
Conclusion
That’s all. While traditional banks may hesitate to give you a mortgage for modular homes and log cabins, alternative finance options like HUMM, Loanitt, and credit unions offer great deals for first-time home owners.
By providing flexible terms, competitive rates, and smooth application processes, these providers make it easier for individuals to secure funding for their unique housing needs.
So whether it’s through installment plans, personal loans, or tailored financing solutions, begin your journey towards homeownership without the constraints from traditional banks.
