Housing bank launches loans for prefabricated homes

The Lebanese Housing Bank launched a new financing program for ready-made and prefabricated homes, offering loans of up to $100,000 over 20 years, as it seeks to provide lower- and middle-income families with more affordable alternatives to traditional homeownership.

The initiative comes amid persistently high property prices, rising construction costs and declining purchasing power, which have made buying or building a home increasingly difficult for Lebanese households especially in current circumstances. By expanding its lending portfolio to include prefabricated structures, the bank is seeking to offer families a potentially less expensive and faster housing option.

Housing Bank chairman

Speaking to The Beiruter, Housing Bank Chairman and General Manager Antoine Habib said the program was part of the institution’s strategy to diversify its financing products and introduce housing solutions that better match the financial capabilities of Lebanese families, particularly those with low and middle incomes.

Habib explained that applicants must meet the bank’s general eligibility criteria, including demonstrating sufficient income and repayment capacity and submitting the required personal, financial and property-related documents. He stressed that eligibility also depends on the legal and technical characteristics of the project. The land on which the house is to be installed must comply with applicable legal requirements, while the structure must be permanently secured to permanent foundations. Applicants must also provide the necessary permits, contractor or company quotations and technical specifications. Each project will subsequently undergo the bank’s technical and credit assessments before a final lending decision is made.

Financing conditions and requirements

Under the program, loans range from a minimum of $20,000 to a maximum of $100,000, with an annual interest rate of 5.75% and a repayment period of up to 20 years. Borrowers will also benefit from a three-month grace period.

The bank will assess each applicant’s financial circumstances, income sources and existing obligations to determine whether they can meet the repayment schedule. Meeting the income requirements alone does not guarantee approval, as the project must also satisfy the bank’s legal, technical and credit conditions.

In particular, the requirement for permanent structural foundations means that applicants cannot simply install a prefabricated house on land without meeting the bank’s construction and safety conditions. The property and the proposed installation must be supported by the relevant permits and technical documentation.

Habib said it was too early to determine how many families would benefit from the program, as this would depend on the number of eligible applications and the bank’s available financing capacity. He added that the objective was to reach the largest possible number of Lebanese households while maintaining responsible lending standards and ensuring the program's financial sustainability.

Broader housing strategy

The new product forms part of a wider strategy to expand Housing Bank’s financing portfolio beyond conventional home purchases. According to Habib, the institution is working to provide financing for purchasing, constructing and renovating homes, in addition to ready-made and prefabricated structures.

The bank is also seeking to strengthen its funding sources through cooperation with Arab and international funds and financial institutions, with the aim of increasing its capacity to support households.

Habib stressed that the institution’s objective was not simply to increase the number of loans granted, but to establish a sustainable housing finance system. Under this approach, repayments collected from existing borrowers can be reinvested to finance new applicants, allowing the bank to continue supporting families over the long term.

He added that financial sustainability depends on assessing borrowers’ creditworthiness, verifying their income and financial obligations, obtaining appropriate guarantees and monitoring instalment payments.

Solar energy financing

Housing Bank is also examining the possibility of expanding its financing activities to include solar energy systems, as electricity expenses and dependence on private generators continue to weigh on household budgets.

Habib said the bank had previously examined financing mechanisms for solar installations in cooperation with specialized institutions, including the Lebanese Center for Energy Conservation (LCEC).

It is currently studying the possibility of introducing dedicated loans for solar energy installations or incorporating their costs into existing construction and renovation loans.

The initiative reflects the bank’s recognition that housing affordability extends beyond the cost of purchasing or building a property. Reducing household electricity expenses and the costs of maintaining homes has also become increasingly important amid Lebanon’s persistent energy challenges.

While the number of beneficiaries and the program’s overall financing capacity remain uncertain, the launch introduces another option into Lebanon’s limited housing finance market. Its impact will ultimately depend on the availability of funding; the program’s eligibility conditions and the ability of households to meet the repayment requirements.