Guide to Prefabricated Home Construction Financing

This guide provides an overview of financing options for prefabricated homes, which are constructed partially offsite and then transported for permanent installation. It outlines the process for obtaining construction loan funding from CommBank for projects up to $1.5 million. The document details the conditions under which progress payments can be accessed during the offsite construction phase, emphasizing that the total disbursed amount cannot exceed specific thresholds related to land value and build contract price. Additionally, it explains the requirements for land ownership and the necessity of a valuation assessment to confirm that the prefab home will be affixed to the land upon completion. The guide also discusses the benefits of quicker construction timelines and the importance of seeking independent legal and financial advice before proceeding with such financing arrangements. It concludes with an example scenario illustrating the funding calculations and payment stages involved in a typical prefab home construction project.