Tiny House Lending Is Here

UPDATE: The site TinyHouseLending.com is no longer up. Sorry! Our friend Kai said, “Tiny House Lending made some progress, but ultimately was constrained to personal loans, which weren’t a great fit for the Th market for a variety of reasons.”

One of the questions we receive from our readers is if loans exist for tiny house construction projects. The answer until recently has been “No” however, tiny house lending is here. Our friend Kai Rostcheck (founder of www.TinyHouseDating.com) has also seen a need for loan options and has been pounding the pavement for several months to create a bridge between a lender and tiny house hopefuls. We had the opportunity to interview Kai regarding his new site, www.TinyHouseLending.com (sorry, that site is no longer active) and ask him questions regarding the process.

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kai

Kai Rostcheck, founder of www.TinyHouseLending.com

Tiny House Build: Thank you Kai for taking the time to do this interview with us here at www.TinyHouseBuild.com. Though financing is something that all of us would prefer to live without, for some, it’s the only way to turn a tiny house dream into a reality so I think this is a great service. Please tell us how it works.

Tiny House Lending: It’s easy. A tiny house enthusiast comes to our site, clicks on “Get Started” then gives us a little bit of background information so we can match her/him with a lending partner. Once we present the recommendation, our user clicks over to the finance provider’s website to complete an application.

Tiny House Build: So you don’t actually process loans – Tiny House Lending is basically a match-maker?

Tiny House Lending: Exactly. And over time we’ll bring on additional partners to improve the quality of the matches and offer more choices to our customers.

Tiny House Build: In your research did you come across a lot of loan options for tiny house enthusiasts?

Tiny House Lending: Finding a tiny house loan can be incredibly difficult. I spoke to hundreds of traditional partners, microfinance institutions and alternative credit unions while figuring out how to make this work. Suffice to say, an individual who is looking for financing is going to have to do a lot of running around. We remove that work from the process.

Tiny House Build: Is there a cost to apply?

Tiny House Lending: No. There is no cost, and the applicant is under no obligation to accept a loan of he or she qualifies.

Tiny House Build: What kind of loans are available?

Tiny House Lending: Our partners offer personal, unsecured loans. Personal loans are sometimes called signature loans because you aren’t putting up any property or savings as security. Instead, your signature is the collateral. The amount you can borrow and the interest rate you pay are determined by standard factors such as your credit score, debt-to-income ratio, work history, etc.

Tiny House Build: Are there specific qualifications that your lending partners are looking for?

Tiny House Lending: Potential borrowers must have good to excellent credit to apply. Loans are available up to $100k, for terms as long as 84 months. RVIA certified park model RV loans begin with terms as low as 2.99% APR. Other tiny house loans (for non-RVIA certified pre-built models, or for people who want to buy materials and build themselves) can be as low as 5.99%. Our lenders serve residents of all 50 U.S. states.

Tiny House Build: What is the application process like? What kinds of information should interested parties expect to place in the application fields?

Tiny House Lending: It usually takes about 10 minutes to apply. Standard questions include income level, work history, purpose of the loan, etc.

Tiny House Build: One thing I am interested in is your mention that one can apply not only for a loan for a completed tiny house, but that one can apply for essentially a construction loan to build their own tiny house. What are the specifics of each type of loan?

Tiny House Lending: Yeah, this is really important since there are so many do-it-yourselfers and also a tremendous influx of people who want to buy ready-made. Here too, Personal Loans are the easiest category to work with. In either case it’s actually the same financial product, used toward the buyer’s individual purpose.

Tiny House Build: How long does it take to receive responses to a loan application?

Tiny House Lending: It could be as little as a few hours or up to a few days. The process is pretty quick. It’s kind of like “Hey, are you REALLY ready for a tiny house? Because you could be living in one a few days from now!” But again, the application is non-binding – nobody has to accept one and there’s no cost to apply. If you are interested in seeing if you qualify, please click on this link (sorry, this site is no longer up) to get started.

 

UPDATE: The site TinyHouseLending.com is no longer up. Sorry! Our friend Kai said, “Tiny House Lending made some progress, but ultimately was constrained to personal loans, which weren’t a great fit for the Th market for a variety of reasons.”

28 Responses to Tiny House Lending Is Here

  1. John March 25, 2015 at 11:26 am #

    So this great! Except it seems expensive? Yes it is difficult to find but a local credit union will often finance R/V and Tiny homes on a 15 year loan period. A 90k loan, %2.99 at 84 months is almost $1200/month, which could finance a traditional home at a much higher price point. I am very seriously looking at building myself a Tiny home to downsize and be affordable by reducing monthly expenses, and so maybe I am hoping I am missing something here in what is being presented?

    • Bob March 25, 2015 at 12:58 pm #

      Keep in mind a 15yr loan would be 180 months. Even at 2.99% that interest adds up to a lot. I don’t think a tiny house loan would be 90K, closer to 40-50K for one you have someone else build for you… unless it’s a very expensive one. That $1200/month is closer to what a lot of friends I know have with a 30yr mortgage. Except they’re interest is not as low as that. I would expect much lower payments on a tiny house loan. Also consider most CU or local financing will only loan on a certified RV and may not recognize a tiny house as qualified. It is great to see this set up.

    • javier April 17, 2015 at 5:29 am #

      Que Tenga Un Buen Ejemplo

  2. Krista March 25, 2015 at 2:09 pm #

    Is there any possibilty of encouraging a crowd-funding fund as a “mini-mortgage” source? I would think there’d be a market for $25-40k and a point or two above typical interest rates? I see these applications fall flat on crowdfunding sites because there’s not a focal interest in the value by funders…

  3. Kai March 26, 2015 at 8:13 pm #

    Hi John, Bob and Krista, thanks for your questions and comments. Regarding the affordability of certain loans – I think that really depends on where you are standing. If you currently pay a lot for rent and can get out from under that by borrowing for the short term, it could well be worth it. Plus, it’s important to remember that there is really no “apples to apples” way to compare a Tiny House purchase to a mortgage. There are all sorts of financial options out there for people who want to buy traditional houses, but barely anything for the Tiny House market. We hope to offer products to every part of the market but we are in the very early stages, and the activity on our site is already fueling more productive conversations with additional lending partners.

    Re: crowdfunding – we’re exploring that option (that was actually our original vision for the site!) and will also continue to build the case with peer-to-peer sites like Prosper and Lending Club.

  4. lisa gillis March 31, 2015 at 12:03 pm #

    hi Kai,
    we just built our first Tiny House and are looking to build more for people to buy so I will definitely tell them about your site! If you would like to discuss please PM me via my email. We are not RVIA certified builders as of yet, but plan to be so that should help I would imagine.
    have you come across any insurance companies for Tiny Houses? would love your feedback!
    best,
    Lisa

    • Kai May 27, 2015 at 12:08 pm #

      Hi Lisa, I’m so sorry for this long overdue reply – I missed your comment when this post first came out.

      You can reach me at kai@tinyhouselending for any questions about our program in general and/or co-marketing.

      Re: insurance – yes – I have a couple of contacts for that, too.

      Kai

    • Carol Winslow August 3, 2016 at 10:48 am #

      Hi Lisa:
      I am in the process of lining up with a builder of Tiny Homes to sell their homes and am researching all avenues of the Tiny Home but my biggest obstacle is the loan…and where to find the lenders that will do them.
      Have you found any yet?
      Carol

  5. Jadynn April 25, 2015 at 4:40 pm #

    Can you let me see the cheapest miniature house you have.

  6. Nancy Atchison May 8, 2015 at 8:59 am #

    I want to build a tiny house for myself. I am tired of living in a big place. I own my own property. I’m a teacher. If you can help in any way let me know.

    • Gabriella
      Gabriella May 8, 2015 at 10:42 am #

      Hi Nancy! Couple ideas: if you haven’t yet, sign up for our free 7 day e-course. Then go to tinyhouselending.com and see if you qualify for a loan if one is needed. Keep us posted! 🙂

  7. David Ferris May 16, 2015 at 10:55 pm #

    IF YOUR GOING TO HAVE SOMETHING DISPLAYED LIKE THE LENDING. GIVE US A CHANCE TO LOOK AT IT INSTEAD OF WISHING WE COULD.

    • David Ferris May 16, 2015 at 10:56 pm #

      GOOD IDEA DAVE. MAYBE WE SHOULD LOOK INTO THIS.

  8. Josh May 26, 2015 at 8:14 am #

    I would love to live tiny but for me i would have to borrow money to afford to build a tiny house for me and my wife. My issue is is that i have debt from a few mistakes i made out of high school so my credit isnt the best. (Im 23) now what would be some good options for me going forward?

    • Kai May 27, 2015 at 12:06 pm #

      Josh, there is some really good free advice out there regarding credit repair. Here’s one example: http://www.credit.com/credit-scores/easiest-way-to-improve-your-credit-score/

      I recommend you take a look at this article the search for a few others as well. You’ll probably find that much of the advice is similar and straightforward. From there it’s just a matter of time and consistency.

  9. Giza June 21, 2015 at 11:37 am #

    Hi! My fiancé and I are super excited to get started on building our first tiny home together in St Petersburg, FL. We are trying to figure out best possible way to locate a lot to build our home on and getting things started! Reading about tiny houses and financing options certainly fuels my excitement! I can’t wait to find a lot start building our dream tiny house! Please share with me if you have any suggestions or guidance. =D

  10. Freida January 23, 2016 at 6:34 am #

    Hi, I would like to convert a shed into a tiny house for my brother, who is a Viet Nam Vet with stage five kidney failure. Please advise if anyone has any ideas or suggestions .

    • Gabriella
      Gabriella January 27, 2016 at 1:04 pm #

      We are so sorry to hear about your brother Freida. Converting a shed into a tiny house is most definitely an option. Many many people have done that without it taking up too much time or money. One thing you will want to consider is if your neighbors will have an issue with someone living there and if your local municipality would have a problem too. If you think they might, it would be better to approach them first and to explain the situation and the need. Create a web of support for yourselves so that you don’t have to worry about someone complaining. In terms of the practicalities of how to convert a shed, here is a site I found that may be helpful: http://tinyhousetalk.com/how-to-turn-your-barn-or-shed-into-a-livable-tiny-house/ We wish you both the very best!!!

  11. Simonetta Bois June 24, 2016 at 11:35 am #

    I am looking for a $60,000 loan for a 500 sq ft tiny home to be located in a tiny home park in Colorado. I can’t make a down payment. Want payments around 500 to 550. Where can i go and how do I approach them on this.

    • Frank Trowser January 26, 2017 at 10:26 am #

      We all are and I don’t think there is that option in keeping the payment low. Personal loans and “RV” type loans are good for like 60-84 months from what I’ve seen and that puts the payments in the $900+ range for just $60k.

  12. Sandy LaTour January 26, 2017 at 6:09 am #

    I have Tiny Home RV loan options THOW (Tiny Homes on Wheels) available for the US and Canadian residents. Please contact me for more info.

    • Cathy Howell February 2, 2017 at 8:33 pm #

      I’m interested in Tiny Home RV loan options.
      Please let me know how to contact.

    • Carlos Padilla February 22, 2017 at 3:08 pm #

      Would love to know the options you have for THOW. How should I contact you?

      • Gabriella
        Gabriella February 23, 2017 at 10:46 am #

        Hi Carlos and Cathy. I’m very sorry but that site was just taken down.

    • Sandra September 13, 2017 at 11:08 am #

      Please tell me where to go a tiny home loan.

  13. Kristy February 18, 2017 at 5:17 pm #

    Would love to check out the website for tiny house lending but it doesn’t work!!!!

    • Gabriella
      Gabriella February 23, 2017 at 10:45 am #

      Hi Kristy. Unfortunately, the site was just taken down.

  14. HTERRY July 17, 2017 at 12:24 pm #

    No one who works in America should be turned down on a little tiny $50,000 loan for a home to live in!!! NO ONE!!! That’s less than we can rent for!!! If the credit is low, the loan amount should be low….. if the credit is high, the loan amount should be high!!! Does not take a rocket scientist to figure that out!!! The rich are even keeping us from owning a tiny home!!!! While they all have 2 large homes! So sick!!! oh yeah…us paying them rent in double the amount is how they pay for their 2nd home! What was I thinking?!HTERRY

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