In France, a prefab or modular house (maison préfabriquée, maison modulaire or maison à ossature bois) is financed like any new house built on your own land. Banks use a standard property loan whose funds are released in stages as the build progresses. The French system also adds strong buyer protections, which reassure lenders.
This guide covers how the loan is released and repaid, the CCMI contract and its legal payment schedule, the mandatory insurance, French borrowing limits, the PTZ in 2026 and the other available help. The CasitaLand directory lists 31 French manufacturers with 129 models.
How a Construction Loan Works in France
You sign one property loan for the land and the house. The bank pays the land at the notary appointment, then releases the rest as the builder calls payments (déblocage progressif des fonds). Two options exist for the build phase:
- Interim interest (intérêts intercalaires): you pay interest only on the amounts released, and full repayments start after the last release.
- Deferral (différé): repayments are postponed until completion, and the interest is added to the loan or paid monthly.
A prefab house shortens this phase. Once the permit is granted, factory production and assembly are quicker than a traditional build, so you pay interim interest for fewer months, often while still paying rent.
The CCMI and Its Legal Payment Schedule
When a single company supplies both the plans and the construction of your house, French law requires a contrat de construction de maison individuelle (CCMI). Many prefab manufacturers use it. It gives you:
- A fixed, all-in price and a contractual delivery date.
- A delivery guarantee (garantie de livraison) from a third party, which finishes the house if the builder fails.
- A legal cap on the payments the builder can request at each stage.
| Stage reached | Maximum paid (cumulative) |
|---|---|
| Site opened | 15% |
| Foundations complete | 25% |
| Walls complete | 40% |
| Weathertight roof (hors d'eau) | 60% |
| Partitions done, windows fitted (hors d'air) | 75% |
| Works and equipment complete | 95% |
| Handover without reservations | 100% |
This schedule suits your bank: payments follow progress it can verify on your plot. If a manufacturer offers another contract type, such as a kit sale or a works contract without plans, check the payment terms and guarantees closely, because the CCMI protections will not apply.
French prefab manufacturers in the directory
Dommages-Ouvrage Insurance: Mandatory and Worth Checking
Since the Spinetta law of 1978, the owner must take out assurance dommages-ouvrage before work starts. It pays for repairs of serious defects covered by the builder's 10-year liability (garantie décennale) quickly, without waiting for a court to assign responsibility.
- Cost: usually 2% to 4% of the build cost, so several thousand euros for a typical house. It is lower when a professional builder under a CCMI handles the whole project.
- Banks usually ask for it, and without it you will struggle to sell the house within 10 years.
- Check the builder's own décennale certificate before signing.
Many CCMI builders arrange dommages-ouvrage for you. Ask whether it is included in the price.
How Much Can You Borrow?
French banks follow the rules of the Haut Conseil de stabilité financière (HCSF):
- Total loan repayments, insurance included, of no more than 35% of net income.
- A maximum term of 25 years, extended to 27 years for a new build when repayments start after completion.
- Banks may go beyond these limits for a small share of their loans, mostly for owner-occupiers and first-time buyers.
Example: a household earning €4,000 net a month can repay up to €1,400 a month across all its loans. Most banks also want a personal contribution covering at least the notary and guarantee fees.
The PTZ in 2026
The prêt à taux zéro is an interest-free loan for first-time buyers, meaning you have not owned your main residence in the last two years. Since April 2025, new individual houses are eligible again in all zones, which covers prefab and modular houses.
- For a new house, the PTZ can finance 10% to 30% of the project, depending on your income bracket.
- Eligibility is based on your reference tax income from two years earlier: 2024 income for a 2026 application.
- The term runs from 10 to 25 years, with repayments deferred by up to 10 years for the lowest incomes.
- Income ceilings and project ceilings were raised for 2026.
The PTZ is always combined with a main property loan. Ask for a simulation at your first bank appointment, because it changes the amount you need to borrow at market rates.
Other Help for a New Build
- Action Logement loan: a low-rate loan for employees of private-sector companies with 10 or more staff, subject to conditions.
- Prêt d'accession sociale (PAS): a regulated loan for lower-income households, with capped fees.
- Local schemes: some regions and towns offer their own help for first-time buyers.
Compare French prefab manufacturers
Ask each one whether they build under a CCMI and include dommages-ouvrage in the price.
See prefab homes in France →Costs to Plan For
- Notary fees on the land: around 7% to 8% when bought from a private seller. Land bought from a developer may carry VAT instead.
- Permit: a building permit is needed, and an architect is compulsory above 150 m² of floor area.
- Plot preparation and connections: often excluded from the manufacturer's price.
- Taxe d'aménagement: a one-off local tax on new floor area.
- Loan guarantee: a mortgage or a guarantee from a specialist body, paid at signature.
Worked Example: Financing a €250,000 Project
An illustration with round numbers for a first-time buyer. PTZ amounts depend on your zone, household size and the project ceiling, so ask your bank for an exact simulation.
| Item | Amount |
|---|---|
| Plot | €70,000 |
| Prefab house under a CCMI | €155,000 |
| Connections and site preparation | €12,000 |
| Notary fees on the plot (private seller) | €5,500 |
| Loan guarantee and bank fees | €3,500 |
| Dommages-ouvrage, if not included | €4,000 |
| Total project | €250,000 |
If a PTZ covers 20% of an eligible cost of €200,000 within your zone's ceiling, €40,000 of the project is interest-free and the main loan shrinks accordingly. At the 35% limit, a monthly repayment of €1,200 requires a net household income of about €3,430.
Timeline From Contract to Handover
- Loan simulation including the PTZ, and plot reservation with a condition on the permit.
- CCMI signature, with conditions on the permit, the loan and the plot purchase.
- Building permit: 2 months to process a standard house application, plus a 2-month period in which third parties can appeal.
- Loan offer: by law you must wait 10 days after receiving it before accepting.
- Plot purchase at the notary, then site opening.
- Construction: shorter for a prefab house than for a traditional build, then handover with or without reservations.
Documents Your Bank Will Ask For
- The plot sale agreement (compromis de vente) and the planning certificate.
- The signed CCMI with plans, specification and payment schedule, or the builders' quotes.
- The building permit, or proof of the application.
- Delivery guarantee and dommages-ouvrage certificates.
- Your last tax notices, payslips, bank statements and proof of your contribution.
Common Mistakes
- Signing a builder contract without a loan condition. The CCMI includes one; other contracts may not.
- Forgetting dommages-ouvrage when the builder does not include it.
- Not checking PTZ eligibility before setting the budget.
- Comparing kit prices with turnkey prices. A kit can look cheaper and end up more expensive.
For a wider view of the market, read our guide to prefab homes in France.
Lending rules change from one country to the next. Read the guide for the country where you will build:
Frequently Asked Questions
Yes. French banks finance a prefab or modular house built on your land with a building permit like any other new house, through a property loan released in stages as the build progresses.
While the house is being built, you pay interim interest (intérêts intercalaires) on the amounts released, or you defer repayments. Full repayments start after the last release, usually at handover.
The main one is the PTZ, an interest-free loan for first-time buyers, available for new individual houses in every zone since April 2025. Employees of private companies may also access a low-rate Action Logement loan, and lower-income households the prêt d'accession sociale.
Yes. The owner must take it out before work starts. It pays for repairs of serious defects quickly, without waiting for a court to decide who is responsible. It usually costs 2% to 4% of the build cost.
The contrat de construction de maison individuelle, created by a 1990 law. It is mandatory when one builder supplies both the plans and the construction. It fixes the price and delivery date, requires a delivery guarantee and caps the payments at each stage.
It is possible for first-time buyers with stable incomes, especially when a PTZ covers part of the project, but most banks want at least the notary and guarantee fees paid from savings.
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