How to Finance a Tiny House

Over the past several years we have seen an increasing trend in what enthusiasts are calling the Tiny House Movement.  Folks are giving up their 2,000 to 5,000 sq. ft. homes and minimizing their lifestyles to fit into 500 sq. ft. homes or smaller.

The idea is to give up paying on a mortgage for the next 30 years, but no matter the house size, home buyers still need to ask themselves: How much house can I afford?

And these buyers are running into a unique situation.  If they do not have liquid cash available to purchase a tiny home outright, finding a lender to fund this non-traditional home is not as easy as one might think.

You won’t find a traditional home loan for a tiny home because most mortgage lenders have minimum loan amounts and offer loans for homes on permanent foundations only, whereas a lot of tiny homes are built on trailers with wheels.

A hikari box tiny house with a modern exterior.

What kinds of loans are available?

The options available to you will depend on your credit history, your savings, your income, and a whole host of other factors.

Friends and Family

If you go this route, you’ll want to come up with an agreement that suits you both and that doesn’t leave your friend with any out of pocket costs.

Manufacturer Financing

Some tiny house manufacturers have in-house schemes to help out their customers.

Bank Loan

There are two types of bank loans you could go for: an unsecured loan or a secured loan. You’ll need to speak to your bank to find out which options are available to you.

RV Loan

Some tiny house manufacturers have deliberately got themselves classified as RV manufacturers, so that buyers can secure RV loans to help them get the money together to buy a tiny house.

Peer-to-Peer Lending

Matchmaking sites such as and Tiny House Lending are striving to make it easier for wannabe tiny house owners to get access to funding, by connecting them with networks of third party lenders who want to help them get a good deal.

There is no one best way to finance your tiny house, but with a little creative out-of-the box thinking and a good mortgage lender on your side, they can help you best access your individual goals.

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225

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