Finding tiny house financing for a self-build isn’t always easy. Regular real estate lending companies haven’t quite yet come up with a solution that’s affordable and fair. Private lender options require collateral and often demand high interest rates. Standard credit card companies aren’t generally a viable option either because their spending limits are normally below the materials costs of a tiny house build (plus their interest rates are typically high). So, what to do? Behold…the Home Depot line of credit.
If you’re a commercial business, you can apply for one of their commercial options. If you’re not though, your best option for tiny house financing may just be what’s called the “Project Loan” credit card. This option can provide you with up to $55,000 in materials/supplies buying power at their store (which carries nearly everything that a tiny house build may typically need) at a fixed 7.99% interest rate. That’s actually a decent interest rate especially since these are unsecured loans (loans issued without collateral and based solely on borrower’s credit score).
For this first six months of receiving the Home Depot Project Loan card, you have the opportunity to purchase your materials at their store. During that time, it charges you only the interest on those purchases. After those first six months elapse, it locks you into a seven-year (84 month) payment plan.
If you were to, say, buy $30,000 in materials for your tiny house, you would be looking at a monthly payment of $468 per month over the course of seven years. Now, you may want to pay that off early because seven years is a long time and that’s fine; there are no prepayment penalties whatsoever. It’s a great option for getting a pretty good amount of money (up to $55,000) at a low-interest-rate 7.99% without any collateral at all. You just have to qualify for the loan by having a passing credit score.
We hope this option bridges a solution for those wanting to build their own tiny house that don’t have the up-front cash to do so. We have heard good reviews from tiny housers that have used this option and would love to hear if you have done so yourself. Or, if you found your own creative tiny house financing option, we would love to hear about that too!
Before closing out, we want to give a shout-out to Hannah Rose Crabtree from PocketMansions.com who gave us this tiny house financing option. Thanks Hannah!!
p.s. we are not an affiliate of Home Depot’s and received no compensation in any way for this review.
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