Massively posted a concise tutorial on crafting horses:

When you think of post-apocalyptic mounts, you probably imagine a gas-sipping motorcycle, an armored truck or the last of the V8s, right? Yet, a very practical way to get around when society falls is on horseback. In Fallen Earth currently, a horse mount is probably your best option -- especially considering the fact that you can get one very early in the game.

With all other mechanized mounts in Fallen Earth, you need to assemble them from scavenged parts and fuel them with gasoline. As you can imagine, gas isn't exactly available on every corner after the apocalypse. Repair is done through costly repair kits, and some of the vehicles have some fairly steep limitations when it comes to accessibility around town and up hills (the ATV, for instance, stops dead at every curb). With a horse, you have a whole different set of options and features. Even though you fuel them with sacks of horsefeed, they can slowly regenerate their stamina when they're not being used. Plus, you have the choice of healing a horse with either a veterinary kit or the same bandages you use on yourself.

Want to learn how to get your very own horse at level 3? Keep reading below for our tutorial.