In This Guide
- Financing Options
- Loan Types
- Insurance
- Permits
- Legal Checklist
- FAQ
Financing Options Overview
Traditional mortgages don't work for most tiny homes. Lenders want a permanent foundation and a certificate of occupancy. Without those, you're in personal loan or RV loan territory.
| Loan Type | Best For | Typical Rate | Max Amount |
|---|---|---|---|
| Personal Loan | Kits under $50K | 7–15% | $50,000 |
| RV Loan | RVIA-certified THOWs | 6–12% | $150,000 |
| Construction Loan | Foundation builds | 7–10% | Varies |
| Home Equity Loan | ADU on existing property | 6–9% | 80% of equity |
Best Loan Types
Personal Loans
Fastest to get, no collateral required. Best for kit builds under $50,000. LightStream, SoFi, and local credit unions are the best places to start.
RV Loans
If your tiny home is RVIA-certified, RV lenders will finance it like an RV. Rates are better than personal loans and terms go up to 20 years. Southeast Financial and Good Loans Mortgage both specialize in tiny home RV loans.
Construction Loans
For foundation builds on land you own. More complex to qualify for but the right tool for a permanent tiny home on your own land.
Legal Checklist Before You Buy
- Confirm your county's minimum dwelling size requirement
- Verify the parcel is zoned for residential use
- Check deed restrictions and HOA rules
- Confirm utility access or verify off-grid legality
- Determine permit requirements
- Check setback requirements
- Confirm your structure type is legal for intended use
FAQ
Only if it's on a permanent foundation with a certificate of occupancy and meets minimum size requirements (usually 400 sq ft for FHA). Most tiny homes need alternative financing.
Usually yes if it's over 120 sq ft and intended for occupancy. Check with your county building department before you order.