Tiny House Loan Options in 2026

Finding a loan for a tiny house can be tricky, but more lenders are starting to offer options that fit small homes and park models. This guide breaks down the main loan types available in 2026, from credit unions and builder financing to personal and RV loans.

Little Houses for Sale Team•November 12, 2025

Quick Summary: Tiny House Loan Options

Traditional mortgages rarely work for tiny houses due to size and foundation requirements

Credit unions offer the most flexible tiny home financing with rates from 5-10%

RV loans work for RVIA-certified tiny houses on wheels with 7-15 year terms

Personal loans provide quick funding but higher rates (8-15%) and shorter terms

Builder financing programs offer convenience but vary widely in terms and rates

Loan rates, terms, and availability change frequently. Always compare multiple lenders and read all loan documents carefully before committing.

Why Traditional Mortgages Don't Fit Tiny Houses

Traditional mortgages require homes to meet minimum size requirements, typically 400-600 square feet, and must be permanently affixed to owned land with proper foundations. Most tiny houses fail one or both requirements.

Tiny houses on wheels classify as personal property, not real estate. Lenders cannot secure mortgages against movable structures. Even permanent tiny homes often fall below minimum size thresholds or exist in areas with zoning restrictions that prevent mortgage approval.

The result: tiny house buyers need alternative financing. These options typically carry higher interest rates and shorter repayment terms than traditional mortgages, but they accommodate the unique nature of tiny homes.

Credit Union Loans and Tiny Home Programs

Credit unions consistently offer the best tiny house financing. Many credit unions created specific tiny home loan programs recognizing the growing market demand.

LightStream (Division of Truist Bank)

LightStream offers unsecured personal loans specifically marketed for tiny houses. No collateral required, and funds can be used for purchase or construction.

Loan Amount: $5,000-$100,000

APR Range: 7.49%-25.49% with autopay (rates as of Nov 2026)

Terms: 2-12 years

Requirements: Good to excellent credit (660+), steady income

Visit LightStream Website →

Patelco Credit Union

Patelco offers secured and unsecured loans for tiny homes, including construction loans for owner-builders. Members in California and nearby states have access.

Loan Amount: Up to $100,000

APR Range: 6.50%-12.50% (varies by credit and collateral)

Terms: Up to 15 years

Requirements: Credit union membership, credit score minimums

Visit Patelco Website →

Whatcom Educational Credit Union

This Washington-based credit union pioneered tiny house loans in the Pacific Northwest. They offer loans for both tiny houses on wheels and permanent structures.

Loan Amount: Up to $75,000

APR Range: 7.00%-11.00%

Terms: Up to 10 years

Requirements: Membership required, tiny house must meet quality standards

Visit WECU Website →

Check your local credit union for tiny home loan programs. Many smaller credit unions offer flexible lending to members even without formal tiny house programs. Visit tiny house financing resources for more lending options.

Personal and RV Loans for Tiny Homes

Personal loans and RV loans provide the most common tiny house financing. Both work for tiny houses on wheels, though RV loans typically offer better terms.

RV Loans for RVIA-Certified Tiny Houses

Tiny houses built on trailers with RVIA certification qualify for RV loans. These secured loans use the tiny house as collateral, resulting in lower rates than personal loans.

Typical Loan Amount: $20,000-$100,000+

APR Range: 5.99%-9.99% (secured, based on credit)

Terms: 7-15 years (sometimes up to 20 years)

Down Payment: 10-20% typically required

Requirements: RVIA or NOAH certification, title, insurance

Major RV Lenders: Good Sam Finance Center, Essex Credit, Southeast Financial, Bank of the West. Compare rates across multiple RV lenders.

Personal Loans for Tiny Houses

Personal loans work for any tiny house regardless of certification or foundation type. These unsecured loans require no collateral but carry higher interest rates.

Typical Loan Amount: $5,000-$100,000

APR Range: 8%-15% for good credit, higher for fair credit

Terms: 3-7 years typically

Requirements: Credit score 640+, stable income, debt-to-income ratio

Top Personal Loan Lenders: SoFi, Marcus by Goldman Sachs, Upstart, Discover Personal Loans. Shop rates without affecting credit score through soft inquiries.

Home Equity Loans and HELOCs

If you own property, home equity loans or lines of credit provide lower-rate funding for tiny houses. Use your existing home's equity to finance a tiny house purchase or construction.

APR Range: 6%-10% (secured by existing property)

Terms: 5-30 years

Requirements: Sufficient home equity, good credit

Personal loans provide the fastest approval but cost more long-term. RV loans offer better rates for RVIA-certified builds. Calculate total interest costs using our cost calculator.

Builder and Manufacturer Financing Options

Many tiny house builders offer in-house financing or partnerships with specialty lenders. Builder financing simplifies the process by bundling purchase and loan approval, but terms and rates vary significantly.

In-House Builder Financing

Some established builders provide direct financing to buyers. This streamlines purchase but may carry higher rates or less favorable terms than external lenders.

Typical Terms: Varies widely by builder

Advantages: Convenient, single point of contact, may approve buyers banks reject

Disadvantages: Limited comparison shopping, potentially higher costs

Always compare builder financing against credit union and personal loan options. Ask for total interest costs, not just monthly payments.

Builder Partnerships with Lenders

Many builders partner with specialty lenders who understand tiny house financing. These partnerships can speed approval and improve terms for customers.

Common Partners: LightStream, Koala Financial Group, Decathlon Credit Union

Process: Builder provides referral, buyer applies directly to lender

Rent-to-Own Programs

A few builders and communities offer rent-to-own options where monthly payments apply toward eventual ownership. This helps buyers with credit challenges or limited down payment funds.

Typical Terms: 2-5 year rent-to-own periods

Requirements: Initial payment, proof of income

Considerations: Higher overall cost, understand purchase option terms

Research builders with transparent financing. Visit our verified tiny house builders directory to find builders with financing options and customer reviews.

Comparing Loan Rates and Terms in 2026

Understanding total loan costs requires comparing interest rates, loan terms, fees, and monthly payments. Here's how different loan types stack up for a $60,000 tiny house purchase:

Loan Type	APR Range	Term	Monthly Payment*	Total Interest
RV Loan	6.5%	15 years	$522	$33,960
Credit Union	8.0%	10 years	$728	$27,360
Personal Loan	10.5%	7 years	$913	$16,908
Home Equity	7.5%	15 years	$556	$40,080

*Based on $60,000 loan amount. Actual rates vary by credit score and lender.

Key Insights:

Lower rates don't always mean lower costs. Longer terms accumulate more interest despite lower monthly payments.
Personal loans cost less total interest due to shorter terms, but require higher monthly payments.
Credit score matters. Excellent credit (740+) can reduce rates by 2-4 percentage points.
Down payments lower costs. 20% down reduces loan amount and often improves rate offers.

Use online loan calculators to compare total costs across different loan structures. Don't focus solely on monthly payment affordability.

What to Know Before Applying for a Tiny House Loan

Preparation improves approval odds and secures better loan terms. Take these steps before applying:

Check your credit score. Obtain free reports from all three bureaus. Dispute errors and improve score before applying if below 680.
Calculate debt-to-income ratio. Lenders prefer DTI below 43%. Pay down high-interest debt before adding tiny house payments.
Save for down payment. 10-20% down improves approval chances and reduces interest rates significantly.
Document income. Gather tax returns, pay stubs, bank statements. Self-employed borrowers need two years of tax returns.
Understand certification requirements. If buying tiny house on wheels, confirm RVIA or NOAH certification for better loan options.
Research insurance. Lenders require insurance. Get quotes before applying to understand total monthly costs.
Plan for where you'll park it. Some lenders require proof of legal parking location. Research local zoning laws first.
Shop multiple lenders. Apply to 3-5 lenders within 14-day window to minimize credit score impact.

Read all loan documents carefully. Understand prepayment penalties, late fees, and what happens if you need to relocate your tiny house.

Frequently Asked Questions

What credit score do I need to get a tiny house loan?

Most lenders require a minimum credit score of 640-660 for personal loans and 680+ for RV loans. Credit unions may be more flexible. Scores above 720 qualify for the best rates, potentially saving thousands in interest. If your score is below 640, focus on improving credit before applying or consider builder financing programs that may have lower requirements.

Can I get a mortgage for a tiny house?

Traditional mortgages rarely work for tiny houses. Most lenders require minimum sizes of 400-600 square feet and permanent foundations on owned land. Tiny houses on wheels cannot qualify for mortgages since they're classified as personal property. For permanent tiny homes over 400 sq ft on foundations, some credit unions offer specialized tiny home mortgages.

What's the difference between an RV loan and a personal loan for a tiny house?

RV loans are secured loans using the tiny house as collateral, offering lower rates (6-10%) and longer terms (10-20 years) but requiring RVIA certification. Personal loans are unsecured with higher rates (8-15%) and shorter terms (3-7 years) but work for any tiny house regardless of certification. RV loans typically save money long-term if your tiny house qualifies.

How much down payment do I need for a tiny house loan?

Down payment requirements vary by loan type. Personal loans typically require no down payment. RV loans usually require 10-20% down. Credit union tiny home loans may require 10-15%. Larger down payments (20%+) often secure better interest rates and improve approval odds. For a $60,000 tiny house, budget $6,000-$12,000 for down payment.

Which lender is best for tiny house financing?

No single lender is universally best. Credit unions like Patelco and Whatcom Educational Credit Union offer competitive rates and flexible terms for members. LightStream provides fast unsecured loans with good rates for excellent credit. For RVIA-certified tiny houses on wheels, RV lenders like Good Sam Finance offer the best terms. Always compare at least 3-5 lenders before deciding.

Final Tips and Related Financing Resources

Tiny house financing has improved substantially, but still requires more effort than traditional home loans. Credit unions consistently provide the best combination of rates, terms, and flexibility. RV loans work well for certified tiny houses on wheels. Personal loans offer the fastest approval but cost more over time.

Start your search with local credit unions, even small ones without formal tiny home programs. Many lenders approve tiny house loans under personal loan or specialty secured loan categories. Don't assume a lender won't work with you until you ask directly.

Compare total interest costs, not just monthly payments. A lower monthly payment stretched over 15 years often costs more than a higher payment over 7 years. Run the numbers before committing.

Explore our complete tiny house financing hub for more resources. Learn about grant programs that can reduce your loan amount. Use our cost calculator to estimate total ownership costs including loan payments, insurance, and parking fees.

Ready to shop? Browse our tiny house listings to find homes within your budget. Connect with verified builders who offer financing options. With proper preparation and lender research, financing your tiny house is achievable.