Tiny House Financing Life Hack!

tiny house financing

Materials financing for a DIY tiny house can be hard to find. Fortunately, there’s a great option!

Tiny House Financing Life Hack

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).

The “Project Loan” card from Home Depot can provide you with $55,000 in material purchasing power at an interest rate of 7.99% over 84 months

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. 

You can watch the video version of this article below:


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2 Responses to Tiny House Financing Life Hack!

  1. Mario March 10, 2017 at 12:10 pm #

    Dear Gabriella,

    Is an 8% interest rate really considered low in the US at the moment? Here in central Europe common rates at the moment are around 2-3%.

    My wife an I are very interested in tiny homes but currently don’t really see it feasible for ourselves with our two little girls. Maybe at a later time when they go to school or even leave our home.

    I enjoy reading your articles, keep up the good work.


  2. Chris March 10, 2017 at 2:05 pm #

    Regarding the Home Depot credit – I think this is closer to a credit card type of approval. Unless you already have $50k credit cards, I doubt you will get a $55k credit line. That is the max for that credit product in general, but it works like a credit card. I doubt many people will be able to get more than 10-20k in store credit. It’s not like a home loan. Also

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