Have Your Documents Ready
Most lenders require you submit the following documents:
- A copy of your driver’s license, passport, or state ID.
- A copy of your social security card or W9.
A recent paystub.
Last 2 years tax returns or W2
Proof of good funds for the deposit.
What if you haven’t been working for 2 years? Lenders look at that on a case by case basis. Submitting a letter of explanation often overcomes this concern.
Pick the Best Loan for You
Now that you have the basic documents together it’s important to know the difference between the 3 types of loans used for Tiny House RVs.
Rotate your screen to view the table.
Conventional RV Loan | Tiny House Loan | Personal Loan | |
---|---|---|---|
Available at | Most credit unions and banks | Through tiny house builder | Online |
Rates | Low (6% – 13%) | Medium (8.2% – 14%) | High (10%-16%) |
Length | 15-20 years | 15-25 years | 5-10 years |
Minimum Salary* | ~$3,500 / mo | ~$2,500 / mo | ~$5,000 / mo |
Minimum FICO* | ~640 | ~575 | ~700 |
Down Payment | 0% – 20% | 0% – 23% | 0% |
1st Payment | Before it’s built | After delivery | Before it’s built |
Consider This | While rates are great, these are designed for buying a Winnebago or Jayco. They will look at your Tiny House as a luxury purchase and want to see high disposable income. |
Easy to qualify, but the most paperwork. These loans look and feel more like a mortgage than an RV loan. | Higher rates and monthly payments. These loans are best suited for buying a DIY tiny house that doesn’t qualify for other loans. |
*The minimum salary and FICO scores are estimates. They will vary from lender to lender. Other factors such as outstanding debt or the source of your deposit may also affect the lenders decision.
At Tumbleweed, we work with all 3 types of lenders. If you complete our monthly payment form, we’ll show you different options available specifically tailored to you. We take everything into account, from the state you live in, to any college debt you may have.
Talking to the Lender
IMPORTANT: Always talk to the builder before the lender.
Your builder should be able to recommend a reliable lender. Be cautious when finding your own lender. Often they will approve you for a loan, then pull back the loan when it gets to underwriting at the corporate headquarters. If they’ve never done a tiny house loan before, have a backup plan.
Find out when your first payment is due. Often it takes months for a tiny house to be finished. Is your first payment due before the building even starts? Or after the house is delivered? And what if the house is delayed?
Complete the payment plans form to see loan options tailored specifically for you.
How Long Does This Take?
Step 1: Submit a loan application with a quote from the builder. Usually you get an approval or denial within 1 – 3 business days.
Note: Don’t be discouraged by a denial. We’ve seen about 50% of denials flipped to an approval.
Step 2: Submit your documents
It’s time to dig. The lender will provide a list of documents they need. Then, expect a second wave of document requests. And sometimes even a third wave.
Most borrowers take 1-2 weeks in between each round. For a well organized borrower it can take 1 week, but for the average borrower, this process takes a month.
Step 3: Loan package
Once all the documents are approved, the lender will create the loan documents and send them to you for signature and notarization. Once completed, they are sent back to the lender, for final audit. This usually takes 1 week.
Step 4: Final audit
During final audit, the lender might request updated documents if it’s been several months since you started the loan. Once those documents are submitted, your loan is approved for funding and your tiny house can be delivered. This usually takes 1 day – 2 weeks.
Do you accept VA Vouchers
Unfortunately, VA loans and vouchers do not work for Tiny House RVs.
I wish there was a tiny house village in this area. I would love a tiny but have no idea where to put it. It seems so daunting to buy an acre somewhere & try to find out if a tiny is even allowed. At least with a village you have someone to help you through the process. I just want to retire in my own place. I am tired of renting.
Carol D
Madison Wi
I was reading that, they had used tiny homes, wow, really great. There are some other corporations that have tiny houses, I’m giving them a call very soon because the mortgage is just much to much, id move from Mass and do something at 🏡
Can your tiny homes be built on a permanent foundation?
Is there any place in Florida that has Tiny house communities? Thanks in advances
This a comment and an answer to a few posted comments. I live in Florida and have plans to develop a Tiny House community.
I’ve attended a weekend conference hosted by Tumbleweed that gave a wealth of information on the construction, placement and lifestyle with Tiny Houses. I paid to attend the conference which was well run and organized. The knowledge I gained and the materials provided (and kept) gave me understanding of how quality Tiny Homes are built, moved, and a familiarity with various zoning code issues. Also valuable was learning that Tumbleweed’s methods of construction and expertise would be the template for the project as their homes are going last.
Tiny homes can be placed on a permanent concrete slab foundation with attachment points to secure them from extreme weather. Doing this also raises zoning issues.
I’m looking to purchase scenic property with enough land to accommodate at least six Tiny Houses, without crowding. The properties I have been interested in purchasing are somewhat rural, though have paved road access and are not far from quality healthcare and amenities of cities.
If you are interested in more information or collaboration please reply to this comment or email me at [email protected] .
I have heard that when you buy a tiny home, home insurance can be difficult at best, is this still an issue?
Insuring a tiny home is very easy now.
Hi , if I finance thru you what bank would hold my losn or where would I be sending check to