In This Guide
- Why Mortgages Fail
- When a Mortgage IS Possible
- Best Alternatives
Why Tiny Homes Struggle with Mortgages
Conventional lenders require: minimum size (400 sq ft for FHA), permanent foundation, and certificate of occupancy. A 200 sq ft cabin on piers with no CO fails all three.
When a Mortgage IS Possible
- Permanent foundation (full slab or basement)
- Certificate of occupancy issued
- Meets minimum size requirements
- Classified as real property
Best Alternatives
- Personal loan — fastest, 7–15% rates
- RV loan — best for RVIA-certified THOWs, 6–12%
- Home equity loan — best rates if you own other property
- Builder financing — some prefab builders offer in-house programs
The math: A $40,000 kit at 10% personal loan over 7 years = ~$660/month. Often less than rent in most markets — the mortgage question matters less than it seems.