Tiny homes can save you a lot of money on housing and property costs - but financing one isn't as straightforward as a traditional mortgage.  Two most commonly used options include Personal Loans and Home Equity Loans.  Personal and Home Equity loans allow you to use the funds not just to purchase your tiny home, but also to furnish it, decorate it, and cover any other move-in expenses. 

Your borrowing limit depends on your credit rating because that is what drives your interest rate.  The better your credit, the lower the rate.  The lower your rate, the more you can borrow at the same payment.  Your income and other debts also come into play.  Lenders consider your debt-to-income (DTI) ratio when you apply for a personal loan.  The less you're spending on other items like credit card payments, auto financing, rent or mortgage, student loans, and other accounts (but not living expenses) the more you can borrow.

Personal Loans

Personal loans are unsecured loans that are provided for any reason.  How much can you borrow when you buy a tiny house?  As much as a lender is willing to lend.  While many lenders top out their loan amounts at $35,000 to $50,000 there are some Personal Loan sources that finance up to $100,000.  Here are two lenders that are lending up to $100,000 on a Personal Loan and often used for tiny home purchases:

Lightstream /click here for more information: Unsecured Loans | LightStream 

Sofi /click here for more information: Personal Loans | SoFi

Home Equity Loans

Home Equity Loans (lines of credit) are secured loans.  They are available if you own a home and want to add a tiny house to the land as an accessory dwelling unit or buy a mobile tiny home while still owning your main residence.  The benefits of home equity loans may include low rates and long repayment terms (typically more than 10 years), which allow lower monthly payments. 

Disclosure: Mini Mansions Tiny Home Builders LLC does not endorse or warrant the products or companies listed on this page and nor does it receive any compensation, monetary or otherwise from these lenders.