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Prefabricated houses are becoming increasingly popular among buyers in Serbia—both young people and families who want their own home without excessive financial pressure. More and more often, clients contact us with the question: is there a loan available for prefabricated houses?

Do lenders approve loans for prefabricated homes?

Yes—loans for prefabricated houses do exist and are treated similarly to standard home loans or construction loans. Banks do not have special loan products specifically for prefabricated houses, but their construction can be financed through regular home loans. In order to approve such a loan, the bank will require that the following conditions are met:

• The land must be owned by the client (meaning the plot where construction is planned must be in your ownership and must be designated as construction land);
• A valid building permit and complete construction documentation are mandatory;
• The value of the property is assessed—the bank evaluates the value of your land and the project (based on this, it determines the maximum loan amount it can approve);
• Collateral—most commonly secured by a mortgage on the property itself (land + house), or alternatively by other property owned by the client;
• Proof of income—the bank will verify the level of your income and creditworthiness (the requirement is permanent employment for at least six months with the current employer, or pensioner status).

Some banks may also require additional documentation, such as a detailed construction cost estimate, conceptual design, site plan, and similar documents. This is why proper documentation and good preparation account for half the work.

What loan amount and terms can you expect?

These figures vary from bank to bank, but practice shows that loans can be approved for repayment periods of up to 30 years, which allows for lower monthly installments.

The loan amount a bank will approve depends on the value of your land and the assessed value of the building. Based on experience, maximum amounts are around EUR 90,000, sometimes even higher. Your income may be burdened by loan installments up to a maximum of 60% of your total income, including the installment for the prefabricated house construction loan.

In addition, banks usually require a certain level of client participation (down payment).

From our clients’ experience, this means that with a well-valued plot and complete documentation, you can obtain a loan that covers a significant portion of the costs of building a prefabricated house.

Top tips before applying for a prefab home loan

Make sure your project documentation is complete and well prepared (conceptual and main design, building permit, cost estimate).

Visit several banks—conditions vary, so find the most favorable option.

Consider a mortgage on the land + house—this makes loan approval easier.

Submit a contract with the prefabricated house manufacturer.

If you are planning your home, consider a loan for prefabricated house construction as a realistic and accessible option that allows you to move into your prefabricated home much faster than you might expect.

If you need assistance with documentation or preparing an offer for the bank, feel free to contact us.