Prefab & Modular Home Financing: Complete Guide
Everything you need to know about financing prefab and modular homes in Europe—from loan types and eligibility to tokenized options that traditional banks don't offer.
What is Prefab Financing?
Prefab (prefabricated) home financing covers loans for factory-built homes delivered to your land. Unlike traditional construction loans that fund on-site builds, prefab financing aligns payments with manufacturing milestones and installation schedules.
Key differences:
- Milestone disbursements: Funds released when manufacturer completes foundation prep, module delivery, installation, and final inspection
- Manufacturer certification: Lenders verify CE marking, ISO compliance, and warranty terms
- Shorter timelines: Factory builds take 6-16 weeks vs. 6-12 months for site-built homes
- Transparent pricing: Fixed-price contracts reduce budget overruns common in traditional construction
Types of Prefab Loans
Traditional Prefab Loan
Standard mortgage product adapted for factory-built homes. Best for buyers with strong credit (680+) and 20%+ down payment.
- ✓ 4.5-6.5% APR
- ✓ 15-30 year terms
- ✓ Fixed or variable rates
Tokenized Prefab Loan
Blockchain-backed financing using RWA (Real World Assets) tokenization. More flexible underwriting, faster approvals.
- ✓ 4.5-8.5% APR (varies by profile)
- ✓ 10-25 year terms
- ✓ Self-employed & crypto-holder friendly
💡 TrustedBuildr Advantage
We offer both traditional and tokenized options. Our platform automatically recommends the best fit based on your credit profile, income documentation, and timeline needs.
Eligibility Requirements
Requirements vary by country and loan type, but typical criteria include:
Minimum Requirements
- Credit Score: 620+ (traditional), 580+ (tokenized with compensating factors)
- Down Payment: 10-20% of total project cost (land + home)
- Debt-to-Income (DTI): ≤ 43% (all monthly debts / gross monthly income)
- Employment: 2+ years steady income OR 1+ year self-employment with tax returns
Application Process
Pre-Qualification (24 hours)
Submit basic info: income, debts, credit score. Soft pull only—no impact on credit.
Document Upload (1-3 days)
Provide tax returns, bank statements, land deed (if owned), manufacturer quote.
Underwriting (3-7 days)
We verify income, appraise land, confirm manufacturer certifications.
Approval & Terms (1 day)
Receive loan offer with APR, term, and milestone payment schedule.
Closing (3-5 days)
Sign docs, fund escrow. Manufacturer receives initial deposit.
Interest Rates & Terms
| Credit Tier | Traditional APR | Tokenized APR | LTV Max |
|---|---|---|---|
| Excellent (740+) | 4.5-5.5% | 4.5-5.2% | 90% |
| Good (680-739) | 5.5-6.5% | 5.2-6.0% | 85% |
| Fair (620-679) | 6.5-8.0% | 6.0-7.5% | 80% |
| Near-Prime (580-619) | Not available | 7.5-8.5% | 75% |
* Rates as of January 2025. Subject to credit approval and market conditions.
Traditional Bank vs. Tokenized Financing
| Feature | Traditional Bank | TrustedBuildr |
|---|---|---|
| Approval Time | 2-6 weeks | 48 hours - 1 week |
| Self-Employed Friendly | Limited (2+ years required) | Yes (1 year + bank statements) |
| Crypto Holders | Not accepted | Accepted as assets |
| Cross-Border Buyers | Difficult | Streamlined process |
| Transparency | Limited visibility | On-chain records, public risk framework |
Related Resources
Frequently Asked Questions
Ready to Start Your Application?
Get pre-approved in 48 hours with no impact on your credit score.