Our new way of funding essentially means we have security before the product is delivered, which removes much of the uncertainty for buyers and builders partnering on a build.
Financial institutions have been reluctant to offer traditional mortgage products to prefab projects, largely because of the complex issues around security while the product is being built in a factory.
Financing of prefab is further complicated by the fact that prefab necessarily straddles the manufacturing and housing industries. Financing for traditional house builds relies on the gradual release of funds as milestones are reached, such as the pouring of a concrete slab, the erection of the frame and full completion. In contrast, the only on-site work in prefab construction is installation which means the builder or manufacturer needs funding upfront. Adding to the complexity is the variation in state building laws with respect to maximum deposits and the scope and nature of progress payments.