Personal loans for tiny home financing can be obtained from online lenders. These loans can be used to finance the purchase of all or part of a tiny home. Their repayment plans are usually shorter than that of a mortgage.
Using your credit score, these lenders determine whether or not you will be approved for a personal loan and what rate you will be approved for. Different lenders offer personal loans, but some lenders are best to get personal loans for tiny homes. In this article, some of the best personal loans for tiny home financing will be explained to help you make the right selection.
What is Tiny Home Financing?
If you need a tiny home but can’t afford one at the moment, you can decide to go into financing. Tiny home financing is defined as any method of borrowing money and making repayments over time. Personal loans are common to everyone, and they are one of the ways to fund your tiny home financing.
Tiny home loans do not qualify for conventional mortgages. This is because mortgage loans do not come in an amount less than $60,000. Also, most mortgage lenders check that your home has a foundation, and most tiny homes don’t have one. To sort out your tiny home financing issues, getting a personal loan in 2024 is a better option.
Tiny Home Financing Risks
A benefit to tiny homes is that there are lower housing expenses and less upkeep. Aside from these benefits, some financial risks come with it. Some of these risks include:
- High purchase of land or leasing.
- If you take your tiny home on the road, parking fees at campgrounds and fuel costs a lot.
- Getting new appliances that fit the home.
- Tankless water heater tanks.
- House maintenance and repairs.
These and more are the risks of tiny home financing. However, maintaining a tiny home may be quite a lot and expensive. Aside from these, you get to enjoy a free living space as well as the benefits of spending less on housing.
7 Best Personal Loans for Tiny Home Financing
There are different personal loans for tiny home financing you can consider in. Some of the best personal loan lenders include:
SoFi
SoFi is an online lender that renders unsecured fixed-rate personal loans. Over the years, SoFi has given over $50 billion in loans, and they are known for allowing high loan amounts to borrowers. Between the range of $5,000 to $100,000, loans are available for borrowers to decide from. If you need a large sum of money, SoFi is the best option for you. SoFi’s repayment plan ranges from two to seven years.
Marcus
Marcus offers personal loans ranging from $3,500 to $40,000. This lender may not be preferable to those who intend to borrow a larger amount, but it offers flexible loans that last for about three to six years. Borrowers are granted access to APRs from 6.74% to 24.74% with a discount of 0.25% for autopay enrollees.
Upgrade
Upgrade maximum APRs are high compared to other online lenders. This lender offers loans to people who have a bad credit history. Upgrade offers loans ranging from $1,000 to $50,000 and a two- to seven-year repayment plan.
Discover
This is an online bank that renders credit cards, personal loans, and retirement solutions to customers. As one of the many lending platforms, Discover stands out because of its mobile banking tools and online application. This lender offers loans ranging from $2,500 to $40,000 with a repayment plan between three to seven years.
Avant
Avant is a consumer lending platform that gives both secure and unsecured personal loans to borrowers through WebBank. In addition, Avant specializes in middle-income borrowers who have fair credit. It only requires a minimum score of 580 to qualify for a personal loan.
LightStream
This lender renders loans with low minimum and maximum interest rates. It offers unsecured loans ranging from $5,000 to $100,000 depending on the purpose of the loan. LightStream has no origination fees but flexible terms.
Universal Credit
This is an online lender that offers personal loans ranging from $1,000 to $50,000 through its partners. Its repayment plans range from three to seven years. Even with bad credit, Universal Credit has made getting a personal loan accessible for you.
