Tiny Home Financing And Loan Options

Sep 17, 2024

7-minute read

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Tiny house funding, potentially related to financing options for tiny homes or small residences.

A tiny home might sound like an appealing option if you’re looking to downsize or enjoy a simpler way of life. Many home buyers are interested in the tiny-house lifestyle for its minimalist charm and lower cost of living. But how do you go about financing a tiny home?

Most people who buy a house take out a mortgage to finance the home purchase. A mortgage loan allows you to pay for a house over a period of time – usually 15 or 30 years. With a tiny home, however, these mortgage options are often not available.

Can You Get A Tiny-Home Mortgage Loan?

Many mortgage lenders have a minimum loan amount that’s more than the cost of building or buying a tiny home. The average cost of a tiny home is in the $30,000 – $60,000 range, though tiny homes can be much cheaper (or more expensive) depending on the features you want to include. If the smallest loan a mortgage lender will provide exceeds the cost of a tiny home, as is often the case, it won’t be possible to get a mortgage to make a tiny home purchase.

Some mortgage lenders may also require a home be built on a permanent foundation, but many tiny homes are not. Rocket Mortgage® currently doesn’t offer mortgage loans for homes that aren’t built on a permanent foundation. Additionally, a mortgage lender might require a minimum square footage that a tiny home won’t meet since many tiny homes are less than 400 square feet.

See What You Qualify For