Removal Home Loans Can Be Approved!

What is a removal home anyway?

Removal homes or relocatable homes are normal houses that were not originally built with relocation in mind, but can be moved with specialized tools & trucks. Often they are sturdy older homes with good frames that can be lifted off their stumps with hydraulics. Removal homes are sometimes cut into section to make transport easier and then reconnected when at their new site. Once they have been moved they are permanent just like any other house!

Help! My bank doesn't want to know me!

Most banks and mortgage brokers are not familiar with removal homes. Most people make a few dozen phone calls to various lenders only to be told no time and time again.

Banks most often think that a removal home is not a permanent structure, so lend only on the land value. Other lenders perceive them to be a higher risk and limit the amount you can borrow or charge a higher interest rate.

Sometimes there can be a cash flow problem where the lender will not advance the money for the house until the house is on site & connected to the utilities. The problem is that you can't get the house on site until you pay for it! As far as the lender is concerned, this is not their problem.

Once a removal home is on site and complete there are usually no problems getting a loan because there is no major difference between a house that has been moved and one that was built on that site. You will only run into trouble if the house is not a permanent structure, or could easily be moved again.

The solutions are here!

1. See if you can borrow just using the value of your land. This works well if you are well off.

2. Get a guarantor or family member to help out until the house is on site.

3. Talk to a removal home loan mortgage broker.

4. Negotiate to see if you can pay a small deposit, and pay the rest once the house is on site.

5. Borrow using a different property as security.

6. Use short term financing such as credit cards and personal loans to pay for the house then refinance these debts into a home loan when the house is on site.

We strongly recommend that you talk to your bank or mortgage broker before taking any of these actions. As you can imagine this advice is general only and is designed for people living in the US, UK & Australia so it may not work for you.

About the Author

Otto is a Mortgage Broker that has specialized in removal home loans for over 5 years. His company Transportable Home Finance is now the top removal home loan broking firm in Australia.

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