Banks Providing Prefabricated House Loans and Interest Rates

Prefabricated houses, steel houses and highland houses are houses that you can quickly build on your land and move into in a very short time. In this period when the prices and rental fees of normal houses have reached unattainable dimensions, you can have a very useful, healthy and earthquake-resistant prefabricated house by taking a very small amount of credit.

Do Banks Give Loans for Prefabricated Houses?

Banks and participation banks provide loans for prefabricated houses. However, the rates and payment plans offered by banks may vary from bank to bank. While the interest rates of loans to be used for prefabricated and steel houses generally vary between 1.5% and 3% on a monthly basis, it is also possible to take out a loan with an interest rate below these rates in state banks.

Banks Providing Prefabricated House Loans and Current Interest Rates

Interest rates of state banks

Ziraat bank draws attention with its favorable interest rates along with other state banks. Prefabricated house loan interest rates starting from 1.36% may vary according to the term. Ziraat bank does not charge any loan allocation fee.

Halk Bank, along with other state banks, is also offering campaign options in loan interest rates. You can get a loan for your prefabricated house with an interest rate of 1.29% and a 500 TL allocation fee.

Vakıfbank offers loans with similar conditions to Halkbank. The interest rate for the prefabricated house loan starts at 1.29% and the bank also charges a 0.5% loan allocation fee.

Interest rates of private banks

As you can see in the table above, Akbank offers loans for prefabricated houses with interest rates starting at 2.08%. İşbank's terms are similar, with a monthly interest rate of 2.05% and a loan allocation fee of 0.5%. ICBC's interest rates are slightly higher, but they are still preferable under favorable conditions. The bank offers loans with rates starting from 2.39%.

Interest rates of other banks

Kuveyt Turk offers an offer that can be included among the preferences if you cannot get a loan from state banks. The bank provides loans for prefabricated houses with a 2.24% profit share rate.

4 Steps on How to Get a Bank Loan for a Prefabricated House

The person who wants to apply for a prefabricated house loan should collect the necessary documents and apply to the relevant bank branch. Only real persons can apply for a prefabricated house loan. Legal entities cannot benefit from prefabricated housing loan products.

Step 1

Apply to your nearest branch of the banks with the proforma invoice for the prefabricated or steel house you want to buy and the following documents.

Step 2

Remember to apply to at least five banks. Having many offers in hand will help you a lot in the decision-making process.

Get your payment plan offer from the banks you apply to. You can ask your bank to prepare a payment plan up to 120 months. Compare the offers you have, show the offers to other banks if necessary, negotiate interest rates and complete your application. 

Step 3

Your application will be forwarded to the banks' credit department where it will go through the approval process. Some of the banks you apply to will respond positively and some negatively. Compare the offers of the banks that respond positively and start the loan process with the bank that offers the most favorable terms.

Step 4

After all processes are completed positively, if the value of the house is below 200,000 TL, you can get your loan in your bank account on the same day without giving a mortgage to the bank.

Documents required for prefabricated house loan

• Proforma invoice for prefabricated house
• Income documents
• Payslip
• Credentials

E-mortgage for prefabricated house loans

For home loans for apartments, banks usually place an e-mortgage on the title deed. According to our findings, this is not the case for prefabricated house loans. Since prefabricated house loans are between 200,000 TL and 300,000 TL, banks do not prefer to put e-mortgage in these ranges.

Pros and cons of getting a bank loan for your prefabricated house

Getting a bank loan for your prefabricated home can be one of the biggest and most important decisions you will make in your lifetime. While the process may seem overwhelming for first-time homeowners, researching the pros and cons of home loans can help you negotiate a favorable loan deal.

In this section, we summarize the advantages and disadvantages of taking out a prefabricated home loan for first-time home buyers.

Advantages

• The total cost of your prefabricated house will be paid in advance and you will be a homeowner without leaving your pocket.
• If you make all payments on time and in full, your credit score will be affected very positively. This will make it much easier for you to access other credit products such as car loans, personal loans and high limit credit cards.
• Our country is going through a period of high inflation. In an economic climate where the inflation rate reaches 100%, interest rates are expected to be very high, but with the policies implemented, housing loan interest rates are below 30%. It seems that loan interest rates are quite advantageous compared to inflation. 
• Prefabricated house prices have increased rapidly in the last decade. Although it is predicted that price increases will slow down in the coming period, it is estimated that they will continue to increase rapidly immediately afterwards. It may make sense to become a homeowner before prefabricated house prices increase further.

Disadvantages

• Although housing loans seem advantageous according to the inflation rate, 30% is a very high interest rate according to orthodox economic understanding. Assuming that you get a prefabricated house loan with a fixed interest rate, you may be left with an expensive loan in a scenario where interest rates fall with the fall in inflation in the coming period. For this reason, if you foresee that loan interest rates will decrease in the coming period, it would be in your best interest to use a prefabricated house loan with a variable interest rate. 
• If you default on the loan for your prefabricated house, you may lose your house or other assets.

Things to consider before taking out a prefabricated house loan

As we mentioned above, getting a loan for your dream prefabricated house is a big step, so you should know all the details very well. In this section, we have summarized the points you should pay attention to before getting a loan.

Find out your credit score and improve it

While getting a prefabricated house loan, the first point that banks pay attention to will be your credit score, but it will also positively or negatively affect the interest rate of the loan you will receive from the bank.

How can you improve your credit score?

• If you already have other loans, make sure that you make your payments on time and in full. If possible, pay earlier.
• Pay your credit card statements on time and in full.
• Pay your bills on time.

Balance your income and expenses and prepare your budget before taking out a loan

Paying a prefabricated home loan can be more difficult than you think. If you are a first-time homeowner, starting to save and budgeting will help you make your payments on time and in full.

Saving starts with reviewing your spending habits and cutting unnecessary expenses.

Calculate all your household expenses

You may be overlooking some costs when buying a prefabricated house. First of all, agree on all costs with the company that will build your prefabricated house, do not leave any open points.

Another cost item for your new home will be interior design and furniture. Don't forget to take into account the expenses you will incur for the interior design of your home.

Research all banks and loans and choose the right loan

Generally, people don't take the time needed for credit research. They go to the bank where they work all the time and accept whatever the bank offers. The loan offers offered by banks for prefabricated houses should be better researched and hard bargaining should be done. Apply to at least ten different banks online first, then visit the branch with the offers you receive and negotiate with the representative one-on-one to get your final offer. Be sure to visit all banks. After collecting the offers, evaluate the pros and cons and make your choice.

3 Situations That May Prevent You From Getting a Prefabricated Home Loan

Your loan requests may not be approved by banks. Banks may reject your loan application for many reasons. Let's examine the 3 most common reasons.

Poor credit score

You may have failed to make monthly payments on time on loans you have taken out in the past, or your credit card statement may have been delayed many times. These situations may have lowered your credit score below the level required by the bank and therefore your loan applications may be rejected.

Insufficient monthly income

Your monthly income and the sum of your assets may be deemed insufficient to cover the repayments of the loan you have requested from the bank. Your existing loans and credit card debts may be filling your credit product quota.

Personal reasons

Banks prefer to lend to people with stable and guaranteed incomes. If you have just started a new job or have never used credit products in the past, the bank may choose not to lend to you. For this reason, it will be useful to build a credit score by generating regular income and utilizing bank services.

You Can Own Your Prefabricated House Interest-Free Apart From Credit

You can also have prefabricated houses with interest-free house systems. Companies that provide houses as savings financing, interest-free system apply the same system to prefabricated houses. If you want to own a house in this way, your payments are planned accordingly.

These systems, based on solidarity and cooperation, are now state-controlled.

Hundreds of people become homeowners every month with these interest-free systems and they also offer you the opportunity to buy your home from wherever you want.

How does the bank loan-free, interest-free home purchase system work for prefabricated houses?

It is no longer impossible to own a prefabricated house without a down payment, mortgage or loan. If you have a prefabricated house dream, you can own your home with a savings financing based on trust with this system that brings a different perspective.

All Türkiye citizens over 18 years of age can participate in this website. More detailed information can be found on the websites of companies such as Fuzulev and Eminevim.

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Check out our prefabricated house guide

What is the Lifespan of Prefabricated Houses? How Many Years Can They Be Used?

Banks Providing Prefabricated House Loans and Interest Rates

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What is Ground Investigation? Ground Investigation in Prefabricated