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 is one of a few online lenders that offers loans up to $100,000, making it a good choice for financing tiny homes on the higher end. It’s one of the few lenders that offers the option between fixed and variable rates — and one of the few that charges absolutely no fees. SoFi also offers a variety of online financial products with discounts for current customers. This means it could be a great option if you plan on building your home away from town.
Fixed rates from 4.99% APR to 19.63% APR (with AutoPay). SoFi rate ranges are current as of August 11, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
Marcus by Goldman Sachs offers competitive rates and no fees with the option to skip a repayment if you’re consistently on time for one year. If you’re a service member, you can also qualify for an APR as low as 4%. But it’s not a good option if you’re self-employed — it can be difficult for Marcus to verify your income. Its low minimum loan amount means you may not be able to fully finance a tiny house on the higher end of the price spectrum.
Marcus By Goldman Sachs® Offer Terms and Conditions
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive an APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
Upstart can be a good option if you’re thinking of moving to a tiny house straight out of college. It considers your career and education when you apply to help make up for a thin credit report. There’s also no prepayment penalty. But stick to other options if your credit score is above 670. The starting APR of 8.27% — including an origination fee of up to 8% — is higher than most good credit providers.
Your options for tiny house financing are limited if you have a credit score below 580. But if you don’t have a coapplicant to help you qualify for a good-credit lender, OneMain Financial may offer a good deal. It doesn’t have any hard credit requirements and you can secure your loan with collateral to help lower your rate. While this lender previously required in-branch visits to close the loan, you can complete everything online.
Not available in: Alaska, Arkansas, California, Connecticut, Massachusetts, Michigan, Rhode Island, Vermont
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
LightStream is the online lending arm of Truist Bank — formerly known as SunTrust. It specializes in unsecured home improvement financing and has some of the lowest rates out there. If you manage to get a better offer from another provider, LightStream could beat that rate as long as the offer meets certain conditions. And with financing as high as $100,000, this lender can cover more tiny house expenses than your average personal loan provider.
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.
Unsecured personal 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.
Home equity loans and lines of credit
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.
Why can’t I get a mortgage?
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.
How much does a tiny house cost?
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.
Buying a prebuilt tiny house
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)
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 from scratch
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:
Doors and windows
Hiring an electrician
Other bathroom fixtures and plumbing
Cabinets (storage and kitchen)
Screws, nails etc.
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.
How else can I pay for a tiny house?
Save up. Tiny houses are inexpensive enough to realistically save up for the basic expenses. Selling some of your belongings — which you’re going to have to get rid of anyway — might help speed the process along.
Crowdfund. Reach out to your social network by setting up a crowdfunding campaign. Be sure to set a goal high enough to cover the cost of your tiny house after paying platform fees.
Friends and family. Ask for donations toward your tiny house fund in lieu of gifts, or just flat out ask a relative to borrow money to finance your tiny house. You might not have to pay interest, but be prepared for a damaged relationship if you’re unable to pay it back.
Credit cards. In a pinch, you can use a credit card to finance parts of your tiny house expenses. Just be aware that these typically have higher interest rates than personal loans, so only use it when absolutely necessary. Some credit cards offer an introductory period with 0% APR. If you’re certain you can pay it off before the intro period is over, this may be a good option.
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.
Frequently asked questions
Answers to questions readers often ask about tiny house financing.
Can you buy a tiny house for $5,000?
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.
Do banks finance tiny homes?
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.
How long can you finance a tiny house?
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.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
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