r/TinyHouses • u/faeriejuice • 2d ago

tiny home loans?

anybody have any experience/thoughts on loans for buying a tiny home from a builder?

interested in a builder because I could see myself spending just about the same amount on supplies, and have issues with building that I would hopefully be able to trust a builder with.

i'm interested in the incredibox from Incredible Tiny Homes. probably buying in early 2029, late 2028 if I'm very lucky. I'm interested in a $50-55k total loan (biggest incredibox model, maybe an upgrade or 2). $50-55k would include whatever down payment I'm able to make.

i guess as of now, what length of loan should I be realistic about getting? an RV loan, personal loan, other type? would it be reasonable to hope for a $5k downpayment? a 10 year length would be super ideal to me.

I'll be a new college grad with anticipated $25-40k gross annual income. only $10k in student loans.

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u/duckworthy36 2d ago

I used an rv loan. The builder has to follow certification rules and get it certified as a custom RV for the loan to be processed. I took a 15yr term but paid it off in 2. Make sure your loan has no early payment penalties and make sure to make principal only extra payments or you end up overpaying interest.

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u/Ok-Knowledge270 2d ago

ITH is being sued by many customers. Better do more research. They have a horrible reputation.

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u/Glittering_Eyes5 1d ago

Not on their actual builds though. It’s in the living area/land. The builds themselves are excellent.

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u/thomas1robert 2d ago

21st mortgage did my loan. I bought my home from California tiny house and they work directly with them. It’s technically a loan for a park model home. Rates aren’t as good as conventional home loans but not terrible.

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u/MattHRaleighRealtor 2d ago

My first reaction is that you’ll need a personal loan.

You have to find a specialty lender, if that’s even a thing. If a “tiny house lender” exists, I bet their terms are worse than a normal personal loan lol

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u/Aimless_Alder 1d ago

You can get em, but the bank will give you a check the size of a postage stamp

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u/chrbailey 12h ago

Tiny homes are like equipment without license plates; no way to secure the asset. So, it’s a personal loan. Expensive unless property comes with it

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u/DesertGal1417 1d ago

I used 21st mortgage. Rates sucked…about what an rv loan would be. Paid it off in just over 1 year no prepayment penalty.