Buying a prefabricated house in Portugal: what financing options are there?

Can you get a mortgage for a prefab house?
Can you get a mortgage for a prefab house? / Pixabay
26 May 2021, Redaction

When thinking about buying a property or moving house in Portugal, one of the options on the table may be purchasing a plot of land in order to build your own house. Along the same lines, something that seems to be increasingly appealing and popular in Portugal is the construction of prefabricated or modular houses with a wide range of models available to suit all budgets. But are banks also showing willingness to finance this type of property? Let's have a closer look at the financing options for prefab homes in Portugal and see if it's possible to get a mortgage.

Despite the fact that purchasing a prefab home also requires a construction permit and subsequent habitation license, factors such as the speed of the process and lower costs mean that more and more people are leaning towards the option of buying a prefabricated house.

In relation to financing and if you can get a mortgage for a prefabricated house in Portugal, the answer is yes. "Although not all of the banking market is receptive to this type of financing, there are specialised credit solutions for this type of property, and banks in Portugal are increasingly sensitive to this range of options", comments Miguel Cabrita, head of idealista/créditohabitação in Portugal.

"The choice of manufacturer is also relevant, not only for a question of credibility or quality, but also because there are institutions that are only willing to finance prefabricated houses if the manufacturers are a reference in the market", he adds.

It should be noted that, like any type of mortgage, the percentage of financing will be conditioned to the valuation of the property, but it can reach 90% of the total investment, in the case of permanent home ownership.

Seeking the help of a credit intermediary or mortgage broker can help you get the best financing solution for a prefab house in Portugal. With the help of idealista's mortgage service, idealista/créditohabitação, you can compare the best mortgages and clarify any doubts you may have free of charge with our team of experts, including specialised help for non-residents.

Referrer media
Ready to find the house of your dreams?

Ready to find the house of your dreams?

Find houses for sale and long term rentals on idealista