Tiny House Financing Options
I’ve had many customers ask about tiny house financing. Many of the big companies offer financing, and one day we may too. Use of proper building techniques, following prescribed codes, and getting some form of ever-more imperative 3rd party certification can help secure financing,
For now, tiny house loans are most likely to be provided through:
Personal Loans and Lines of Credit (which often require collateral, like your “big house”)
Recreational Vehicle Loan (often only provided for manufacturer certified RVs)
Is there another option for financing our tiny house dreams?
How About a Tiny House Bank
I’m a curious guy, and a quick search for bankrolling our tiny house dreams led to a trustworthy domain for “tiny home bank financing.” One popped up at the top of the list, and upon visiting the site, I found a picture of one of my favorite tiny houses. Here’s the encouraging text from the page:
We recognize what the prospect of living in a tiny home means to you.
And financing your tiny home should be no more complicated than financing your car.
We’re here to help. (tiny house bank name) specializes in financing the tiny home
of your dreams.
Tell us a little more about yourself and we’ll contact you right away.
>> Click to Learn More
So I Filled Out the Form…
While curious, I’m also cautious and a bit skeptical… so I clicked the big orange “CLICK TO LEARN MORE” button. Hmm… page just reloads. So I filled out the form anyway. Not once, but twice. Why…?
Well the page just reloaded. Same cool picture, same encouraging text, same promise: “Tell us about you… we’ll contact you right away.” No thank you page, no website with more details. No text on my trusty mobile phone, no pushy call center CSR, and now – over a week later – not even an email. Zip. Zero. Nada.
All I got was a pop-over promo for an unfamiliar architectural firm. Searching for that sponsor’s site proved a chore, though I eventually found it, and – big surprise – they don’t even build tiny houses. They’ve designed some nice big homes, but nothing resembling a true “tiny house.” Plan sets start at $2500; more for each copy.
Hmm… So much for truth in lending!
Who Has My Info?
Confidence inspiring? Um… no. So who has my name, email, address, and phone… maybe yours too?
The WHOIS search on the domain revealed the domain was secured by the Managing Principal of a Chicago-based real estate development and investment firm that:
Specializes in the acquisition and development of retail, oice/flex, and mixed-use assets. The firm primarily invests in real property located in infill, urban markets or in select suburban locations with high barriers to entry. Since its founding in 2011, the firm has developed a portfolio of approximately $50MM in total capitalization and is actively acquiring and developing additional property.
Our goal is to achieve superior risk-adjusted returns through each of our investments. Our investment philosophy is to invest in projects where our strategic and proactive entitlement, development, redevelopment, repositioning, leasing, and management expertise can add value.
Unfortunately, I was left with more questions than answers:
Is tiny house banking a reality right now?
Are folks like this really “here to help” tiny house people?
Are we birthing a new generation of tiny house landlords?
Are they collecting our data for future contact with lending offers?
Is this just a phishing scam for tiny house financing?
While I hold out hope, I’ve honestly wonder what’s at play.
Trust ’em But So Far
As a group, at least the hundreds I’m in contact with regularly, tiny house people are overwhelmingly fun, friendly, and hopeful “live and let live” kinda people. We’re savvy, but the trusting type: Perfect for those who prey upon our confidences with special oers like “financing your dreams.”
For all we know, tiny house banks who tout their income in the millions are like all other bankers: upstanding citizens who are there to help out the little guy and give someone a leg up. But trust is oen gained through transparency, and this wasn’t my experience. Make your own choice, but “buyer beware.”
Risk and Reward
As they say, “nothing ventured, nothing gained.” I am an early adopter who does due diligence, and the first to recant on this recount if the tiny house banker follows up with legitimate tiny house financing options. That would be great, and if rates are reasonable, I’m all in!
For now, however, I remain a skeptic who feels like a lead on a list. For all we know, our information – given with hope and trust – was collected for brokering to others who’ve never heard of a tiny house.
I remain in an increasingly alert “watchdog” mode. Be careful, safeguard your identity, but dare to…
Live Large — Go Tiny!
Thom Stanton
