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Tiny House Financing: Personal Loans for Your Tiny Home

The market for tiny homes may be getting bigger, but financing options are limited to personal loans, builder financing and home equity loans.

Steve Nicastro
By
Last updated on December 12, 2023
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

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SoFi Personal Loan
SoFi Personal Loan
SoFi Personal Loan
5.0
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SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.

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Tiny House Financing: Personal Loans for Your Tiny Home

Lender
NerdWallet Rating
Est. APR
Loan amount
Min. credit score
Learn more
SoFi

SoFi Personal Loan

Top 3 most visited 🏆
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
Best for Tiny house personal loans
Rate discount

8.99-29.99%

$5,000-$100,000

None

Upgrade

Upgrade

5.0
/5
Best for Tiny house personal loans
Rate discount

8.49-35.99%

$1,000-$50,000

560

First Tech Credit Union Personal Loan

First Tech Credit Union Personal Loan

Check Rate
on NerdWallet
on NerdWallet
5.0
/5
Best for Tiny house personal loans

8.99-18.00%

$500-$50,000

660

Lending Club

LendingClub

4.5
/5
Best for Tiny house personal loans
Flexible payments

9.57-35.99%

$1,000-$40,000

600

Lightstream

LightStream

4.5
/5
Best for Tiny house personal loans
Rate discount

7.99-25.49%

$5,000-$100,000

660

BestEgg

Best Egg

Visit Lender
on Best Egg's website
on Best Egg's website
4.5
/5
Best for Tiny house personal loans
Secured loans
Wide range of loan amounts

8.99-35.99%

$2,000-$50,000

600

RocketLoans

Rocket Loans

4.0
/5
Best for Tiny house personal loans
Fast funding
Rate discount

9.12-29.99%

$2,000-$45,000

640

Our pick for

Tiny house personal loans

Lending Club
Check Rate
on NerdWallet
on NerdWallet
Lending Club

LendingClub

4.5
Est. APR

9.57-35.99%

Loan amount

$1,000-$40,000

Min. credit score

600

Lightstream
Lightstream

LightStream

Est. APR

7.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

BestEgg
BestEgg

Best Egg

Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

Upgrade
Upgrade

Upgrade

Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

RocketLoans
RocketLoans

Rocket Loans

Est. APR

9.12-29.99%

Loan amount

$2,000-$45,000

Min. credit score

640

First Tech Credit Union Personal Loan
First Tech Credit Union Personal Loan

First Tech Credit Union Personal Loan

Est. APR

8.99-18.00%

Loan amount

$500-$50,000

Min. credit score

660

» MORE: Best home improvement loans

Personal loans for tiny homes

Online lenders offer personal loans that can be used to finance all or part of a tiny house purchase. Loan repayment terms are shorter than mortgages — usually up to seven years — which means you may pay off your tiny home faster, but monthly payments can be high.

Lenders use your credit score and income to determine if you’ll be approved for a personal loan and at what rate. Annual percentage rates on personal loans are from 6% to 36%; borrowers with excellent credit scores (720 and above) will qualify for rates at the low end of that range.

Personal loans are unsecured and don’t require collateral, so you won’t lose your tiny house or another asset if you can’t repay the loan (although your credit score will take a hit).Use a home improvement loan calculator to determine your potential monthly payment and total interest on a tiny house loan.

Personal loans from a bank

Large national banks don’t usually advertise tiny house loans, but you may still be able to get one, especially if you bank locally and have a good relationship with your bank.

Bank loans have similar rates to online lenders, but some offer discounts or lower rates to existing customers. Banks prefer borrowers with good or excellent credit (690 or higher FICO).

Personal loans from credit unions

Credit unions can be a good source for an unsecured tiny house loan, and building a relationship with a credit union can increase your chances of approval.

Credit unions are not-for-profit organizations that serve members who live or work in a particular area. You have to meet the requirements and pay a membership fee to join before you can apply for a loan.

Loans through a tiny house builder

Tiny houses may be financed through a lender that partners with a builder. These loans are either unsecured (based primarily on your credit score) or secured by the tiny house.

The potential benefits include low starting rates (typically under 10%) and longer loan terms (10 to 20 years or longer) than personal loans.

But this option may require a down payment of 20% or more of the purchase price. If the loan is secured, you can lose the tiny house if you can’t make payments.

Tiny homes on wheels may qualify for RV loans, but only if the vehicle is certified as an RV by the Recreational Vehicle Industry Association.

Home equity loans

Home equity loans and lines of credit are available if you own a home and want to add a tiny house to the land as an accessory dwelling unit or buy a mobile tiny home.

Home equity loans usually have low rates and long repayment terms (typically more than 10 years), which allow lower monthly payments. But you’ll need equity to qualify, and you can lose your primary home if you miss payments.

Tiny house financial risks

The benefits of a tiny house may include lower housing expenses and less upkeep. But factor these costs into your budget:

  • Purchasing land or leasing a lot.

  • Parking fees at campgrounds and fuel if you take your tiny home on the road.

  • RV insurance, construction insurance or homeowner’s insurance, property taxes and permit fees.

  • Propane tanks for a tankless water heater.

  • New appliances that fit the home.

  • Typical housing maintenance and repairs.

Last updated on December 12, 2023

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

To recap our selections...

NerdWallet's Tiny House Financing: Personal Loans for Your Tiny Home

  • LendingClub: Best for Tiny house personal loans
  • SoFi Personal Loan: Best for Tiny house personal loans
  • LightStream: Best for Tiny house personal loans
  • Best Egg: Best for Tiny house personal loans
  • Upgrade: Best for Tiny house personal loans
  • Rocket Loans: Best for Tiny house personal loans
  • First Tech Credit Union Personal Loan: Best for Tiny house personal loans
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