The best thing about a Panelized Home Loan is that it usually offers financing up to 100 percent of the cost. This is because you will be building your own home with this kind of home loan. Similar to a modular home, a panelized home is made of pre-manufactured materials that are brought to the building site and put together there.


Panelized homes are far cheaper than the traditional house. This is because most of the effort in the building will come from the home owner. This kind of concept is called ‘sweat equity’ wherein the person will invest more energy building the home rather than the usual monetary value. This is why banks are more willing to give 100 percent panelized home loans. If there is equity, then the equity is minimal and can go as low as 1000 dollars.

For those thinking of getting a panelized home, you can be guaranteed that this kind of home is just as strong and durable as a regular traditional home. Due to required inspections and quality control measures put up by the manufacturing companies, you can be sure that those assisting you just want you to get the best out of your home. They want you to experience the safety and convenience that any traditional home can offer only it is through a panelized home.

The only downside to getting a panelized home loan is that you may have to put up substantial collateral to get the loan. Lenders may find panelized homes to be more risky investments because they are made of pre-fabricated materials. The difference between a regular home and a panelized home is that a regular home may increase in value over the years, but a panelized home value decreases. Thus, there is a need for lenders to have collateral from the borrower before lending a big amount. In a regular home, the buyer has the house which is collateral and security in itself. So in the occasion that payments cannot be made to the lender, the house can be resold for a value that will cover the amount.

Being practical by putting together your own panelized home is a good investment for those who are also purchasing land along with the panelized home they will put on it. Over the years, when they feel that they want to build a more stable and regular, traditional-style home on the land, they can easily remove their panelized home and start building on the land that already belongs to them.