Tiny Home Financing
If you’ve read about the tiny home movement and want to simplify your life by moving into a space that is 500 square feet or less you may need to consider tiny home financing to pay for your ideal small abode.
Key tips for when you want to get tiny home financing:
- Some banks don’t consider tiny homes to be real homes, especially if the home is portable, which is one of the benefits touted by tiny house proponents; you can live wherever you want. If they don’t consider it a real home they won’t approve a mortgage for it.
- Many tiny home loans fall under the minimum dollar amount for lenders to be interested in providing a mortgage loan. All mortgages need underwriting, title insurance, loan docs, and other fees that are the same as those for a larger amount of money and more profits.
- Tiny homes are cheaper if you build them yourself from a kit. Purchased from a builder the average tiny home costs an average of $56,000.
- Your loan options will vary widely depending on whether you build your home on a foundation or trailer.
- If you build on a foundation you need to comply with building codes and you will owe property taxes.
- Some people finance tiny homes with RV loans but those generally have higher interest rates.
Tiny home financing can provide funds for building a small house that doesn’t fit the mold for a conventional loan.
Advice on finding the best tiny home financing:
To get the best tiny home financing, you need to be research all loan options from mortgages and home equity loans to RV loans and personal, unsecured loans. If you have a good credit rating you will have an easier time getting financing. Compare all of the different loan programs available to find the best rates and terms for your tiny home.
Tiny home financing will help you purchase a smaller house and allow you to have less clutter and less home to maintain. Take time to research the best loan programs so you get a loan with payments and terms you can live with.
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