Category Archives: Loans

10/07 Loans for do-it-yourself tiny & small home builders in Scotland

flyer on the loan programThe Highland Self Build Loan Fund, recently launched by The Highlands Small Communities Housing Trust and Scottish Government, will provide financial assistance for those wishing to build a new home on their own plot – perfect for a Wee House!

The fund is available to households in the Highland Council area and could provide a short term loan to cover your build costs up to a maximum of £175,000. On completion of your build you would then repay the loan from your conventional mortgage.

For more information visit www.hscht.co.uk/highland-self-build-loan-fund

Provided by The Wee House Company.

09/26 The Tricky Thing About Buying a Tiny Home

exterior of a brightly lit tiny houseHere’s what you need to know about issues that could make buying a tiny home a big deal.

Buying a tiny house is a huge undertaking — particularly from a financing perspective.

Tiny house hunters are typically looking for homes that range from 100 to 500 square feet. Many of these home buyers are millennials, who don’t want the hassle of maintaining a large house, says Matt Parker, a real estate agent in Seattle and author of “Real Estate Smart: The New Home Buying Guide.”

“Owning a large home on a large plot of land is a relic of the American dream,” Parker says.

TV shows like FYI’s “Tiny House Nation” and HGTV’s “Tiny House Hunters” have helped the movement gain traction.

However, these programs don’t delve into the process of procuring a loan for a tiny home, says Todd Nelson, business development officer at LightStream, a lending division of SunTrust Bank that offers loans for tiny-home buyers.

“Many tiny homes are uniquely built and don’t conform to the mortgage requirements for a traditional house,” says Nelson.

If you’re looking to buy or build a tiny home but don’t have enough cash on hand to foot the whole bill, here’s what you need to do to successfully finance your purchase.

Opt for a home on wheels
Tiny homes are frequently purchased using recreational vehicle (RV) loans, which are unsecured, fixed-rate mortgages that typically have two- to seven-year payoff plans. Generally, these loans have no application fees or closing costs.

“It’s a straight installment loan,” explains Nelson, who says that borrowers usually need a FICO score of at least 670 to qualify.

However, RV loans typically have higher interest rates than traditional home loans (LightStream’s loans start at 2.99 percent but go up to 9.94 percent), are often capped at a $100,000 maximum, and — unlike traditional mortgages — are not tax deductible.

Find a mortgage lender that specializes in tiny home loans
Although the tiny home movement is gaining speed, it’s still a relatively niche market.

Read more – http://www.zillow.com/blog/tricky-buying-a-tiny-home-204504/

05/17 Backed, Inc. partners with Tiny House Lending

Backed, Inc partners with Tiny House Lending
Backed, Inc has partnered with Tiny House Lending to offer modified terms to Tiny House Lending users, with an increased maximum loan amount of $35,000 and an increased maximum loan term of up to five years. Our range of interest rates is unchanged, with rates as low as 2.9% APR.

“Because there’s no collateral, financial institutions charge far higher interest rates for Tiny Houses than you’d see for cars, RVs or conventional housing options” said Kai Rostcheck, Founder of Tiny House Lending.

Through Tiny House Lending, borrowers can tap into our patented-pending loan application process that makes it easy for anyone to gain access to a loan, and receive the special terms. For the lowest possible rate, borrowers can add a Backer, which is our reinvention of co-signing. When a friend or family member “Backs” the borrower, the risk for the co-signer is significantly reduced due to a number of advantages we provide. For example, with traditional loans, a co-signer is only told about a missed payment after it is too late. With us, there is a 15-day grace period after a missed payment, where the “Backer” is notified, which enables them to assist before any late fees occur.

“We believe that the members of the Tiny House community are inherently characterized by their responsible financial behaviors, which makes this a smart partnership for Backed and its network of investors,” said Tal Yatsiv, CEO of Backed. “We look forward to helping people realize their dreams of Tiny House ownership with smart loans that fit their lifestyle.”

Our loans are available today through the Tiny House Lending websiteand are currently available only to residents of Arkansas, Florida, New Jersey, New York, and West Virginia at this time.

Source: https://www.backedinc.com/backed_inc_partners_tiny_house_lending

05/17 Pittsburgh’s tiny house keeps popping up on Airbnb, could be a violation of its URA loan

Pittsburg tiny house on AirBnB

Pittsburg tiny house on AirBnB

Last month, Garfield’s now-famous tiny house sold for $109,000 (its full asking price). But ever since becoming a legitimate, owner-occupied home, the micro house has been living a peculiar life on the internet. The 330-square-foot-home has popped up on the residence-rental site Airbnb at least twice over the past month, each time mysteriously vanishing into thin air about an hour after posting.

Matt Buchholz, an artist who lives a few blocks from the tiny house, says he spotted the listing on Airbnb Sunday night and then screen-grabbed it and posted it on his twitter account (@AltHistories). A City Paper staffer also saw the tiny house posted on Airbnb about two weeks ago. Both times the posting was taken down within an hour…

“Posting it on Airbnb could lead one to believe that her using it as a bed and breakfast may be occurring more than occasionally,” wrote Swartz to CP after the first posting two weeks ago. “I don’t think the URA would accept this, and could conceivably require the developer, cityLab, to repay the $49,000 in URA funds that the project received.”

Read more – http://www.pghcitypaper.com/Blogh/archives/2016/05/17/pittsburghs-tiny-house-keeps-popping-up-on-airbnb-could-be-a-violation-of-its-ura-loan

07/01 Suntrust Bank, Lightstream division, offers loans for tiny homes

tiny house financing from Suntrust

tiny house financing from Suntrust

Todd Nelson, business development officer at Lightstream division of Suntrust Bank, says it can be easier to get financing if the home is on a mobile platform and certified by the Recreational Vehicle Industry Association (RVIA). Then the home will qualify for a standard recreational vehicle loan with current rates between 5% and 6% for seven years — sometimes more — after a 10% down payment.

If your tiny house isn’t on wheels, but also isn’t on a permanent foundation — it remains moveable — Nelson says his company offers unsecured loans for as long as seven years for such purchases up to a maximum of $100,000. You must have good credit and enough income that it appears likely that you can afford to pay for it. Unlike some banks, LightStream will consider all forms of income, including investment and rental income. LightStream also will finance the purchase of a lot for your tiny home.

Read more at: http://www.bankrate.com/financing/retirement/financing-a-tiny-house/