The appeal of the tiny house movement is the idea of living mortgage free. But even affordable tiny houses cost a pretty penny. The average tiny home running between $25,000 and $35,000, plus there is the additional cost of the land you put your house on. Not everyone has funds like that just sitting around. Is there an option for financing a tiny home?
Traditional lenders usually will not finance tiny homes, largely due to the fact that there are not enough comparable properties in any given area for an appraiser to determine the homes value. Without an appraisal, there can be no loan. Lenders might eventually determine a way to to service the tiny house movement, but until then it really comes down to knowing where to look and the loopholes to take advantage of. Keep reading for more information and find the full article here.
If your tiny house is on wheels and meets certain criteria, you could qualify for an RV loan. Some forward-thinking lenders, like Lightstream (a division of SunTrust), are specifically designing their RV loans to be easy for tiny-house buyers to get. Meanwhile, certain tiny-house builders (e.g., Tumbleweed) build their homes to meet all of the criteria for an RV loan and have a financing option built into their buying process.