Financing

Financing Options for Tiny homes often don’t qualify for traditional mortgages due to their size, mobility, or lack of a permanent foundation. However, several financing alternatives exist that your company can Leverage Unsecured loans that customers can use for tiny home purchases, typically ranging from $1,000 to $100,000 with terms of 1–7 years. Interest rates vary (6%–36%) based on credit scores.Advantages: Flexible, no collateral required, and widely available. Customers with good credit (720+) can secure lower rates.Considerations: Shorter terms mean higher monthly payments, which may deter some buyers.RV Loans:Description: Suitable for tiny homes on wheels (THOWs) that are certified by the Recreational Vehicle Industry Association (RVIA). Terms can extend up to 20 years with interest rates around 4.5%–15%.Advantages: Longer terms and lower rates than personal loans, ideal for mobile tiny homes. Considerations: Your homes must be RVIA-certified, and the home must be movable (not on a permanent foundation).Builder Financing: Description: Your company can partner with lenders to offer in-house or third-party financing directly to customers. This streamlines the purchase process and can be branded as part of your service. Advantages: Enhances customer experience by offering a one-stop shop. Can include personal or RV loans through partnered lenders. Considerations: Requires vetting lenders for favorable terms and ensuring compliance with financing regulations. Home Equity Loans or HELOCs :Description: For customers who own a primary residence, they can borrow against their home’s equity to finance a tiny home. Terms can extend to 30 years with lower rates (typically 4%–8%).Advantages: Lower rates and longer terms make payments affordable. Considerations: Riskier for customers (home as collateral) and less relevant for first-time buyers. Title I Loans: Description: FHA-backed loans for manufactured homes or site improvements, including tiny homes as accessory dwelling units (ADUs). Terms up to 20 years with low interest rates. Advantages: Accessible for homes on foundations and site improvements. Considerations: Requires compliance with FHA standards and may involve additional paperwork. Companies Offering Tiny Home Financing Here are specific companies and lenders that your tiny home company could partner with or recommend to customers, based on their expertise in tiny home financing:LightStream by Truist: Offerings: Personal loans for tiny homes with fixed rates starting at 8.99% (with autopay) for borrowers with good to excellent credit. Loan amounts range from $5,000 to $100,000 with terms up to 7 years. Why Partner?: Light Stream is a well-known lender with competitive rates and a straightforward online process. 

They cater to tiny home buyers and could be a strong partner for your customers. Contact: Visit www.lightstream.com or contact their sales team for partnership inquiries.21st Mortgage Corporation  Offerings: Specializes in manufactured and mobile home loans, including tiny homes on wheels or foundations. Offers mortgages with low down payments and no mortgage insurance, as well as consumer loans for Partner?: Their focus on manufactured homes makes them a natural fit for tiny home financing. They work with builders like Indigo River Tiny Homes and could integrate with your sales process. Contact: Reach out to Yulanda Munford, Operations Manager, via www.21stmortgage.com.Acorn Finance: Offerings: A lending platform connecting customers to a network of lenders offering personal loans up to $100,000 with terms up to 12 years and rates as low as 6.99%. No down payment is required for unsecured loans. Why Partner?: Acorn’s platform allows customers to compare offers in seconds without impacting credit scores, making it a user-friendly option to integrate into your website or sales process. Contact: Visit www.acornfinance.com to explore partnership opportunities. Liberty Bank of Utah: Offerings: Nationwide tiny home loans with terms of 5, 10, 15, or 23 years, no prepayment penalties, and competitive rates. They specialize in small modular homes with land. Why Partner?: Their experience with tiny homes and flexible terms make them a reliable partner for both mobile and stationary homes. Contact: Learn more at their website or contact their lending team directly. Premier Mortgage Associates (PMA):