How To Finance A Tiny House

Written by: Paul Cathro

Updated on: December 24, 2022

Read our top tips on finding finance for your tiny house. This could be one of the biggest decisions you ever make, so make sure you have all bases covered.

A tiny house can be a great way to get a home without spending hundreds of thousands of dollars.

For the modern-day minimalist or traveler, these kinds of homes are a dream. If you find yourself interested in getting or building a tiny house, there are a few things to consider including how you’ll be able to afford it.

Luckily, there are a variety of options that can set you on your way towards having your very own tiny home.

These include saving up, looking to friends and family, using credit cards, loans or financing from the manufacturer.

Personal Methods

The best way to get a tiny house would be to save up the money to purchase or build it yourself. That way you won’t be put into debt and you’ll know you can afford it.

One thing to keep in mind overall is that while building a tiny home yourself might be the less expensive option up front, it tends to be a lot easier for a tiny home that was manufactured by a company to get insurance.

Related: Looking for the perfect tiny house getaway? We recommend our favorite hotels and resorts.

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Another option is to turn to friends and family to help you with purchasing your tiny house. It’s important that you be very thorough about the parameters of the loan if you choose this option, in order to avoid any disagreements or problems in the future.

Make sure to get as many of the details as possible in writing, and have both sides sign saying that they agree to the loan.

If possible, you might want to consider offering to pay a small amount of interest so that the person loaning the money is getting something out of the deal.

It’s important to make sure the terms of the loan are as fair as possible to both sides.

Recommended: Don’t miss our guide to off-grid wifi next.

Credit Cards

A credit card can also be an option in being able to afford a tiny house. It’s important to be very careful with this method, however as having a high balance on your credit card can have an effect on your credit.

If you fall behind on the monthly payment, it can also cause a lot of trouble. For those reasons, this method may be useful for maybe part of the cost.

You don’t want to charge more to your credit card than you may be able to pay off.

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Aside from saving up yourself, loans are probably one of the most popular options as far as financing a tiny home, or any sized home goes.

There are a few different options that you can explore while looking for a loan. The first of these is a peer-to-peer lending option.

Essentially, you can go through a loan matchmaking site in order to find companies that want to offer you loans for your tiny house.

While many of the people giving out the loans may be seeking to help the tiny home industry get a foothold, it’s also important to watch out for high-interest loans that may pop up.

Recommended: Curious about getting tiny house insurance?

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Another option is an RV loan, which will work best if you are looking to purchase a tiny house that was built by an RV certified manufacturer.

Buying a tiny house from such a source will not only make getting a loan a little easier, but also being able to insure your tiny house and take it to campgrounds if you want to.

The trouble that can occur with this kind of loan is that the loan company will often expect it to be for recreational purposes, which means you may need a separate address to use as a primary residence in combination with good credit and steady income.

Another option is a bank loan, which might be helpful if you are planning on keeping your tiny house in one place permanently.

If you are able to make a few adjustments to the home in order for it to fit the parameters of such a loan then this may be the right way to go.

Frequently the most common problem that can occur with a bank loan is that the tiny house isn’t large enough to qualify.

Manufacturer Financing

Another common method for getting your tiny house financed is to find out if the manufacturer of a house you may be interested in is willing to offer financing.

In many cases, this financing may come at a higher interest rate than getting a loan through a bank or credit union but sometimes it is the necessary option.

Make sure you know the details of the financing the company offers before agreeing to it, that way you’ll have needed information about any fees, interest and other parameters that might come up as you go along.

It’s always a good idea to be well informed when financing something big.


Overall, you don’t have to fret when it comes to financing for a tiny house, as there are several options available to get you into the home you want.

The best way would be to save up enough money to purchase a tiny house outright, or at least the parts to build one yourself.

That way you stay out of debt, and spend only the money you can afford to. If you need help, it might be a good idea to go to friends and family first so you can trust that both sides will be getting a decent deal.

If neither of those are an option, then credit cards, loans and manufacturer financing are open as options.

Most of the time for these options, you may need to have fair to good credit. It goes without saying that the better your credit is, the more likely you’ll be to get a good deal on a loan.

Regardless of which option you take, you should always be careful to make sure you understand the terms of the loan and can afford the payments relatively easily.

Otherwise, it can spell out trouble down the road.

Just remember, as exciting as the prospect of having your own tiny house is, this is no time to be impulsive! Take your time and weigh up all the options carefully.

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Until next time!

Main Image: By Guillaume Dutilh (Own work) [CC BY-SA 4.0 (], via Wikimedia Commons

About the Author Paul Cathro

Paul is an ex-HVAC engineer with 5 years 'in the trade'.

He acquired in 2022 and aims to make it the internet's most comprehensive HVAC resource for small homes in the next few years.

You can learn more about Paul's story here.

Browse his published work on the website here.

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