Explore Financing
Find below a number of financing possibilities including both "traditional" and non-tradional sources.
A loan secured by real estate opens up many options for you including conventional home financing, FHA, VA, Rural Development loans, and more.
One important fact to remember when talking with any lender is a 7 Day Aframes home is NOT a trailer (THOW) or RV. Your 7 Day Aframes home is conventional construction built on a PERMANENT FOUNDATION on LAND. So you are seeking a real estate loan. Our use of the term "tiny house" below does not imply a trailer. Many forms of tiny houses are permanent structures like 7 Day Aframes... even at 730 square feet BIG!
Small Local or Regional Banks
◾ Small Local or Regional Banks - This is what we would recommend be your first stop. Most clients have found the shortest path to financing is to simply talk with smaller local or regional banks (in the area you are planning to build) about what you are doing. If you've found, or already have land in a rural area, find the local bank(s) that serves that area. These types of banks know the area, cater to the residents in the area, and have a vested interest in the community. Go there first.
USDA Rural Development
◾ Rural Development Loans from the USDA - For rural markets that qualify, some of these loans are available with zero down payment through the USDA Rural Development loan program. Here are a few links: USDA Loans and USDA Loans 2. An USDA loan is a "permanent" mortgage. So this type of financing would require a short term "construction" loan first, then when the home is complete the lender refinances the construction loan with the pre-approved permanent loan. There are a few steps in the process.
Traditional Mortgage Companies
◾ Traditional Mortgage Companies - A 7 Days Aframe house should qualify in most locations for traditional financing such as Fannie Mae and Freddie Mac backed loans, FHA and VA. Simply search for a local mortgage company as close to your property location as possible. Meet with them and get an understanding of what they will need from you. A traditional morgage is also a "permanent" mortgage. This type of financing would require a short term "construction" loan first, then when the home is complete the lender refinances the construction loan with the pre-approved permanent loan. So, there are a few steps in the process.
Liberty Bank of Utah
◾ Liberty Bank of Utah - Liberty Bank has a division which specializes in tiny house lending. It's always easier to deal with a lender that "speaks the language". Being engaged in the growing tiny house movement is great and this lender may just be a perfect fit. You can reach Liberty Bank of Utah here: Libery Bank Tiny Homes Division
Texas Veterans Land Board
◾ If you are a veteran or a surviving spouse of a military member who is missing in action or whose death was service related you may qualify for a special Texas Veterans Land Board loan. Request a land application by calling toll free 1-800-252-8387 (VETS). To apply online or to download an application, go to: Texas VLB.
