Considering a Mortgage to Buy Your First Tiny Home?
The tiny house movement has been growing steadily over the past few years, as people try to reduce their carbon footprint and realize they often have much more home than they really need. Whether you buy an existing tiny house or you get a little plot of land and buy your own, you can reduce your costs considerably when you go down this road to homeownership.
Unfortunately, while a tiny home is much cheaper than a traditional size home, they are still not exactly pocket change. Because of the small return, it can be tough to get a mortgage lender interested in helping someone out with a mortgage loan. That does not mean, however, that getting a mortgage loan for a tiny home is impossible. In 2020, as tiny homes continue to gain acceptance, you may have even more options than ever before.
Challenges to Landing a Tiny Home Mortgage
It’s not just the fact that the borrower is asking for a smaller loan that gives potential borrowers pause; there are other concerns. For example, in certain areas, zoning laws may require that houses be a minimum size, and tiny houses may not be allowed. Also, a tiny home on wheels may be considered personal property, rather than a home, which typically requires a different type of loan than a mortgage loan.
Overcoming Obstacles to Tiny Homes
So, what can you do to beat the system and pay for your tiny home? If you have an existing home, you can refinance or take out a Home Equity Line of Credit (HELOC) and use the money from the HELOC to buy or build your new tiny home. You can then sell your old giant home and pay off the HELOC or mortgage.
You also may want to look into a tiny house that is large enough, with the land around it included, to tempt mortgage lenders into wanting to finance. A 1000 square foot house priced at $100 a square foot is already $100,000, which might be enough to tip the scales.
Taking Into Consideration Zoning, Title, and More With Tiny Homes
Before you seek out a mortgage for a tiny home, make sure that you meet the necessary requirements for real estate in your area. Your tiny home needs to be located somewhere that does not have zoning restrictions against small houses, for example. Fortunately, more and more areas are welcoming houses that do not meet traditional size standards.
You also need to make sure you have a recorded title and plat, and that your tiny home meets local building code standards. Keep in mind you will still have to pay property taxes on your tiny home.
If you take the right approach, there’s no reason you shouldn’t be able to find an appropriate mortgage lender so you can buy or build your tiny home and start enjoying it right away.
Find Your Tiny Home Mortgage Lender Today
The more lenders you look at, the more likely you are to be able to find the right one to provide the financing you need for your tiny home. Onlinelendersearch.com can help. By just providing a few clicks to help narrow down your search, you can be connected with a range of lenders with competitive interest rates. The right lender may just be the tiny home mortgage loan provider you’ve been hoping for. Try us out now!
