Can you get a mortgage on a non-standard construction home?
Can you get a mortgage on a non-standard construction home?
Securing a mortgage for a non-standard construction home is indeed possible, provided that the property's classification does not list it as defective. Nevertheless, it is important to acknowledge that your range of potential lenders will be narrower due to the increased risks associated with non-standard construction properties. Consequently, you might need to consider a mortgage with higher interest rates or a larger deposit.
When evaluating a mortgage application for a non-standard property, lenders will assess the property's condition and its potential to maintain its value over the medium to long term. This evaluation is driven by the inherent challenges of selling non-standard homes, which prompts lenders to contemplate their ability to recover potential losses. Some lenders might hold concerns that substantial losses could potentially lead to repossession.
Instances where obtaining a mortgage for a non-standard construction home might be challenging include
- Defective Classification: If the property has been officially classified as defective.
- Unrepaired Condition: If the property has not been repaired to meet the required standards.
Unrepaired Condition: If the property has not been repaired to meet the required standards.
Assuming the non-standard property is not classified as defective, obtaining a mortgage is feasible, as certain lenders are open to offering mortgages for such homes.
