Financing for tiny home

[Yvette Carabeo]

Good afternoon all,

I am looking to build a small, 600 interior sq ft, 1200 total, on over an acre of land. I own the property, the well has been installed and power is hooked up.  The plans have been drawn up and approved by the county, I am all ready to go except that, traditional constructions loans have turned out not to be an option because the banks and credit unions aren't willing to invest in a "tiny home".  Is there a private investor market for such an endeavor? 

[Thomas S.]

It's high risk for a bank as resale values are not good. The tiny home movement isn't really a true home as they are really only glorified recreational vehicles. This is intentional as it allows the builder to bypass building coded. Unfortunately it will make them ineligible for conventional mortgages as they are a deprecating asset class. Trailers do not appreciate.

Your best bet is family or friends personal loans or unsecured line of credit based on your income.