Modular, Prefab and construction finance is very different to a standard home loan — and treating it the same way can lead to delays, cash flow pressure, and unnecessary stress for everyone involved.
If you’re building a modular or prefabricated home, the way your loan is structured matters just as much as the rate. Not all lenders approach modular builds the same way, and not all builders can operate under the same funding models.
This is where tailored finance — and specialist advice — makes all the difference.
How Modular, Prefab & Construction Finance Really Works
Unlike a traditional property purchase, modular and construction projects involve multiple moving parts:
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Factory builds
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Progress payments
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Transport and installation costs
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Builder cash flow requirements
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Lender policies that vary significantly
One of the biggest differences between lenders comes down to how and when funds are released.
Option 1: Progressive Drawdowns During the Build
Some lenders are willing to release funds progressively throughout the construction process.
This can include:
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Payments as modules are built in the factory
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Funding for materials and labour at different stages
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Reduced upfront cash pressure for builders
For many modular builders, this structure is essential. It allows projects to move forward smoothly without requiring the builder to carry large material and labour costs upfront.
Option 2: Funds Released Only on Completion
Other lenders treat modular builds more like a single, completed purchase.
Under this model:
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No funds are released until the home is fully completed and installed
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Builders may need to self-fund materials, labour, and manufacturing
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Timelines and builder availability can be impacted
This approach can work in some situations — but it’s not suitable for every builder or project.
Why This Difference Matters for Builders and Clients
The way a loan is structured can completely change how a modular project runs.
Not every builder can — or should — be expected to carry the cost of materials and labour until the very end of a build. When finance structures don’t align with the builder’s process, it can lead to:
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Project delays
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Increased costs
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Reduced builder options
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Added stress for the client
Matching the right lender to the right builder is critical — and it’s something that requires deep knowledge of both sides.
Why Working With a Modular Finance Specialist Matters
Just because a bank can do modular finance doesn’t mean they’re the right fit for your project.
Modular and construction lending sits in a niche space where:
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Policies change regularly
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Not all lenders understand factory-built homes
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Builder requirements vary significantly
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Documentation and sequencing matter
At Your Finance Broker, we’ve spent years working closely with both lenders and modular builders. That experience allows us to:
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Understand how different builders structure their builds
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Identify which lenders align best with each project
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Structure loans that support cash flow and timelines
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Reduce friction for both clients and builders
This isn’t about forcing a project into a lender’s box — it’s about building the right solution from the start.
Tailored Finance Solutions for Modular & Construction Projects
Every modular build is unique. The land, the builder, the construction method, and the client’s financial position all play a role in determining the right finance structure.
That’s why our approach is never one-size-fits-all.
Whether your needs are simple or more complex, our role is to:
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Guide you through your options clearly
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Advocate for the right lender structure
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Support your project from application through to completion
Thinking About a Modular, Prefab or Construction Build?
If you’re planning a modular or construction project — or you’re a builder looking for better-aligned finance solutions — early advice can make a significant difference.
📩 Reach out to chat about your next project
We’re here to help you build with confidence, clarity, and the right finance behind you.