A modular home may be eligible for finance, but permanent installation or a Class 1a classification does not guarantee a loan. The lender must assess the borrower, property, supplier, contract and funding timetable.
This guide prepares questions for a lender or appropriately licensed broker. It is not personal credit or financial advice, a loan offer or an indication of approval.
Start with the funding gap
A supplier may request payments while the home is still in the factory. Your lender may require different evidence or security before releasing money. Compare the two schedules before signing the supply contract.
| Supplier milestone | Ask the lender | Confirm your position |
|---|---|---|
| Deposit or factory reservation | Can approved funds be released at this stage? | Amount payable from your own funds |
| Offsite progress claim | Is this manufacturer and payment stage acceptable? | Evidence, valuation and security requirements |
| Delivery and installation | What work or inspections release the next drawdown? | Any gap before installation is complete |
| Completion | Which documents and conditions are outstanding? | Remaining costs and repayment arrangements |
Do not treat this table as an approved lender payment schedule.
Lender policies differ
CommBank's published prefab-home guidance describes offsite progress funding and different conditions for assessed and other manufacturers. Its published limits depend on matters including contract value and land equity.
This is one lender's policy, not evidence that all banks accept the same project. It is not a recommendation of that lender or a claim that ModuHaus or any supplier is on its assessed-manufacturer list. Confirm current eligibility and terms directly.
Prepare a document pack
- 01Property: address, title information, existing borrowing and intended use.
- 02Product: current drawings, installation method and specification.
- 03Contract: supplier identity, price scope, exclusions and payment stages.
- 04Approvals: the proposed pathway and documents the lender requires at each stage.
- 05Budget: complete project cost, available funds and contingency.
- 06Programme: manufacture, site readiness, delivery and completion dependencies.
The lender decides what evidence is sufficient. A marketing image, indicative price or classification label is not a substitute for documents.
Compare like-for-like borrowing costs
Ask about interest, fees, valuation costs, repayment arrangements during construction, the total term and what happens after completion. Do not assume an interest-only period, automatic loan conversion or approval of a particular deposit.
Your borrowing requirement is not necessarily the whole project cost: it also depends on available funds and the lender's assessment. Use the NSW/VIC budget guide to establish the expenditure side first.
Investment and B2B projects need their own brief
State whether the proposal is a home, secondary dwelling, rental or multi-dwelling business project. Do not assume a residential loan product fits a commercial arrangement.
Test vacancy, expenses and debt payments using the rental cash-flow guide. For staged procurement, use the developer project process to clarify contracting and delivery responsibilities.
Frequently asked questions
Does Class 1a guarantee a mortgage?
No. Building classification and credit approval are separate decisions. Ask the lender to assess the actual proposal.
Will the lender pay the factory deposit?
Not automatically. Confirm the approved drawdown stages and any contribution you must fund yourself before committing.
How much deposit will I need?
There is no single amount applicable to all projects. Ask for a proposal-specific assessment, including valuation and security requirements.
What can ModuHaus help with?
Our finance page outlines project-information support. How It Works explains coordination; credit decisions and lending advice remain with the lender or appropriately licensed broker.
Compare Permanent Homes once the site, product scope and funding assumptions are understood.
Sources and further reading
Requirements change and can be applied differently by site and local authority. Check the current official sources and confirm your project with the relevant council, certifier or qualified professional.