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How To Finance A House So Small That It Doesn’t Qualify For A Mortgage


Home ownership remains the mark of financial stability, and for everyone except the wealthiest people, the only way to buy a house is by taking out a mortgage loan.  Of course, mortgage loans come with their own mountain of stress.  People spend years trying to get their finances in order so that they can qualify for a mortgage loan.  Then, when they get one, it is only a source of peace of mind if it has a fixed interest rate and if the borrower does not suffer any financial hardships that they did not anticipate when they applied for the mortgage.  If the mortgage has an adjustable interest rate, then the borrower constantly lives in fear that, next month, the mortgage will become unaffordable.  An increasing number of people see tiny homes, defined as houses with an area of 500 square feet or less, as a solution both to suburban sprawl and to the unaffordability of home mortgages.  Tiny homes range in price from about $8,000 to about $50,000, but since mortgage lenders typically will not issue loans for less than $60,000, then mortgages are usually not an option for financing a tiny house.  If you have decided that home mortgages are bad news and want to start over with a non-mortgage for a tiny home, contact a Jupiter home loan modification lawyer.

Financing a Tiny Home With a Personal Loan

Since the value of a tiny home is not enough for home mortgage lenders to bother with, a personal loan is usually the default option.  Unsecured personal loans are available for amounts up to $100,000.  If you are in debt (which almost everyone is), you have probably received notices in the mail advertising unsecured personal loans for tens of thousands of dollars.  Most people use these loans for debt consolidation, but you can use yours to buy a tiny home.  The interest rates for personal loans vary according to your credit score, so your credit history affects how affordable an unsecured personal loan will be.  If a personal loan is too expensive, then you might be able to get a lower rate by asking a family member to cosign for you.

A Tiny Home on Wheels Counts as an RV

Home mortgage lenders do not consider a tiny home a house, but if you attach wheels to your tiny home, automotive lenders might consider it a vehicle.  A tiny home on wheels is really just an RV that resembles a house in physical appearance more than it resembles a bus.  After all, a tiny home costs about as much as an RV.  In general, qualifying for a motor vehicle loan is a lot easier than qualifying for a mortgage loan, so for the price of a few wheels, you might be able to finance your tiny home as if it were an RV.

Contact a South Florida Debt Lawyer About Financing a Tiny Home on a Tiny Budget

A South Florida debt lawyer can help you find the most affordable way to finance a house, no matter how small it is.  Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.



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