Modular Timber Frame Houses
A modular home is a type of house constructed off-site in a factory setting, in individual sections or “modules,” and then transported to a customer’s location for final assembly. These homes could be concrete or more often timber frame.
For example, the Scandinavian Homes product is a timber frame passive house which is constructed off site and then delivered & assembled over 1 week on a traditional concrete raft. The internal finishes are then completed separately once the frame is up & roof on (similar to traditional build units). The houses are made of a traditional concrete foundation & are permanent structures.
A Coillte commissioned RED C poll revealed that 90% of Irish adults didn’t know the Irish Forestry Industry could supply enough wood to build over 44,000 new Irish homes per annum.
Could this type of housing be the answer to Ireland’s housing problems? Continue reading to find out if they are mortgageable.
Rise in Popularity
Perhaps due to a property shortage in the country, we are now seeing an increase in enquiries regarding alternative properties. One of these alternative properties are the Modular Timber frame construction houses. These houses are less prevalent in Ireland than other forms of construction.
As a result, there are fewer builders, design professionals and developers experienced in timber frame construction. This will need to be taken into consideration if you are contemplating buying one. As there is a small skill level available, you may experience delays and problems with material sourcing, etc.
Are Modular Homes Mortgageable?
Some lenders may not lend mortgages on these types of homes, so it is important to do you research! Most of the builders will recommend mortgage providers and insurance companies that they work with.
Normally, a large deposit is required on ordering the timber frame (12.5% deposit at time of signing contract) – therefore, it is essential to have a large amount of savings. A large payment is due when the shell arrives on site but the Bank will not allow drawdown at this stage until the shell is fully erected & certified (usually 2 weeks after shell is complete).
Payment Schedule
As stated above, payment is required in different stages. See contract schedule below as take from Scanhomes.ie website:
– 12.5% deposit at time of signing contract
– 15% when foundation is completed
– 45% when shell arrives on site
– 25% when shell is erected
– 2.5% retentions kept by you for two months after handing over date.
