SoFi personal loans
Finder score
Min. credit score | 680 |
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APR | 8.99% to 29.99% fixed APR |
Loan amount | $5,000 to $100,000 |
- Available in all states
Min. credit score | 680 |
---|---|
APR | 8.99% to 29.99% fixed APR |
Loan amount | $5,000 to $100,000 |
A tiny house is a residential building that is no more than 400 square feet. The cost of buying a tiny house is usually lower than your conventional mortgage, but most personal loans can cover the cost.
Our team reviewed over 120 lenders before selecting these top personal loans for financing a tiny house. We made sure to include low-cost options for all credit types. And we included a few that can fund more expensive tiny houses — up to $100,000.
SoFi personal loans
Finder score
Min. credit score | 680 |
---|---|
APR | 8.99% to 29.99% fixed APR |
Loan amount | $5,000 to $100,000 |
Min. credit score | 680 |
---|---|
APR | 8.99% to 29.99% fixed APR |
Loan amount | $5,000 to $100,000 |
Upstart personal loans
Finder score
Min. credit score | 300 |
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APR | 7.80% to 35.99% |
Loan amount | $1,000 to $50,000 |
Min. credit score | 300 |
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APR | 7.80% to 35.99% |
Loan amount | $1,000 to $50,000 |
OneMain Financial personal loans
Finder score
Min. credit score | Not specified |
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APR | 18% to 35.99% |
Loan amount | $1,500 to $20,000 |
Min. credit score | Not specified |
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APR | 18% to 35.99% |
Loan amount | $1,500 to $20,000 |
LightStream personal loans
Finder score
Min. credit score | Good to excellent credit |
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APR | 6.99% to 25.29% |
Loan amount | $5,000 to $100,000 |
Min. credit score | Good to excellent credit |
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APR | 6.99% to 25.29% |
Loan amount | $5,000 to $100,000 |
You can finance a tiny house with a personal loan, RV loan, home equity loan or even a chattel mortgage. To qualify for a good deal on most of these options, you generally need to have good or excellent credit — that’s a credit score of 670 or higher, according to FICO. Since tiny houses are relatively cheap you may not need to finance it at all. If you have the time, save up and pay with cash.
Many tiny houses are on wheels. If that’s what you’re looking for, RV loans could help you with funding. To qualify, your home needs to be certified by the Recreational Vehicle Industry Association, which makes sure it meets safety requirements for living and traveling on the road. It also must be made by a manufacturer. You can get this type of financing either through your home’s manufacturer or a provider that offers RV loans.
If you’re looking to buy a tiny house with a solid foundation or want to build your own RV, you might want to consider taking out an unsecured personal loan. You can typically use these term loans for any legitimate purpose and don’t have to put your home up as collateral.
If you’re building your home, you might want to consider taking out a line of credit. That way, you’ll have continuous access to funds and can take out what you need, when you need it. A personal line of credit can prepare you for unexpected expenses that don’t factor into your initial calculations.
When you already have a home, a home equity loan or home equity line of credit (HELOC) can be a better choice. Typically home equity financing comes with lower rates than your average personal loan.
A loan is more useful for a one-off purchase while a line of credit can help if you plan on doing construction or hiring contractors. The downside is that you risk losing your current home if you default on the loan or credit line.
While your tiny home likely won’t be eligible for a traditional mortgage, you may still be able to qualify for a chattel mortgage. These work more like car loans than mortgages — your lender will technically own your home until you finish paying off the loan.
Chattel mortgages can be especially helpful if you park your tiny home on leased land or intend on moving frequently. They tend to have lower interest rates than personal loans and may have lest strict eligibility criteria than other financing options.
Unconventional homes call for unconventional forms of financing. Most mortgages come with minimum limits on how much you can borrow, which tiny houses often don’t meet. Also, they can only be used for homes with a solid foundation — many tiny houses are built with the ability to be moved from one place to another.
Tiny houses tend to cost around $30,000 to over $100,000. But how much you pay depends on whether you plan on buying a tiny house or building one.
It also depends on your area’s regulations. Some local governments require homes with a foundation to be a certain square footage. Others have restrictions to camping on private land — which applies to your home if it’s classified as an RV. Make sure you know your local laws before deciding where or what to build.
This can be the easiest way to do things, but there are still several costs to consider, especially if it’s an RV. If your home is built on solid foundations, your main costs are the home itself and the land.
If you’re buying an RV, you can either buy land, park it on private property belonging to friends or family, rent a long-term RV spot or move it around public land. But you’ll also pay for a trailer license, yearly RV registration fees — not to mention having a car strong enough to drive it around.
Tiny house or RV, including extras and shipping fees | $10,000–$150,000 (Average is around $60,000) |
Buying land | Over $200,000 (plus property taxes), depending on location |
Renting an RV spot | $500 per month plus water and electricity hookup fees (around $450 per month) |
RV registration fee | $20–$200 a year, depending on state regulations |
Building a tiny house, is usually cheaper than buying one, with costs typically adding up to between $10,000 to $40,000. But they can take a long time to build — sometimes even years. On top of the expenses like buying land and getting a trailer license listed above, here are some of the main expenses you can expect to come across when building your new home:
Trailer | $4,500–$9,000 |
Doors and windows | $1,000–$3,000 |
Lumber | $3,000–$10,000 |
Insulation | $500–$2,000 |
Roofing | $500–$1,000 |
Siding | $1,500–$3,000 |
Wall paneling | $500–$2,000 |
Flooring | $300–$2,000 |
Light fixtures | $200–$800 |
Hiring an electrician | $1,500–$3,000 |
Water heater | $500–$1,000 |
Shower tile | $300–$1,000 |
Toilet | $800–$1,500 |
Other bathroom fixtures and plumbing | $600–$2,000 |
Space heater | $200–$800 |
Cabinets (storage and kitchen) | $1,500–$5,000 |
Kitchen counter | $300–$2,000 |
Kitchen appliances | $1,000–$3,000 |
Screws, nails etc. | $500 |
Paint | $50–$200 |
Your time | 400–600 work hours |
Don’t have the time — or skills — to do all that work? Some manufacturers can meet halfway with a tiny house shell. All the basics are pre-installed like water lines, electricity and sewage systems, but you can still customize it to your liking. These typically cost between $10,000 and $35,000.
Or you can buy a prefab tiny house kit, which you can put together yourself for less than $10,000 or hire someone to do the work for you.
Tiny house living is a lifestyle that’s not for everyone. While it’s cheaper than buying a house, you probably won’t be able to sell it for a profit like other types of real estate. Make sure everyone’s onboard before you buy one and also be aware that life changes — like an unexpected pregnancy — have made many families reevaluate their decision.
If you’re sure it’s the right thing for you, you might want to start by comparing personal loans to get an idea of how much it’s going to cost you on a monthly basis and in the long run.
Answers to questions readers often ask about tiny house financing.
It’s possible to buy an RV for $5,000 — but tiny houses typically cost more. Especially when you factor in costs like land, registration and renovations. If you only want to spend $5,000, you might want to look into buying a mobile home instead.
Some bank might finance a tiny home with a personal loan. But generally you can’t get a bank mortgage for a tiny house from a bank — or any other lender. Since some banks offer customer discounts, you might want to reach out to find out if you can qualify.
You can usually finance a tiny house for three to five or seven years, depending on your lenders. Since the cost of a tiny house is usually on the high end of a personal loan, you likely won’t be able to qualify for shorter repayment terms. But while a short term lowers your total loan cost, it can make monthly payments unaffordable.
Yes. Many lenders offer mobile home financing. You may want to learn more about your options for financing a mobile home since there are multiple types of loans you could apply for.
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