Clayton Blog

Financing a Tiny Home

If you desire to finance your tiny home investment, most home lenders are open to helping you move forward with your new Designer Series tiny home purchase.

 

Typical Questions You May Encounter

Designer Tiny Home Kitchen

 

Because of the tiny home stereotype popularized by TV shows, however, a lender may at have concerns. They may ask some of the following questions:

 

  • Where will it be located?
  • How was the home constructed?
  • Who built this tiny home?
  • Is your tiny home safe?
  • Will it have a permanent foundation? Can you move your tiny home?
  • How do you intend to use your tiny home? As a permanent residency? A vacation home?

 

How to Answer Their Questions

Girl Filling Vase in Tiny Home Sink

 

You can confidently answer all of their questions because of the nature and construction of Clayton Designer Series tiny homes.       

 

Where will it be located?

Your lender will need to know if your home will be located on land that you own or if it will be in a microliving community. Wherever your home will be located, it will have been built with the local zoning and building codes in mind so that your home will comply with all applicable construction requirements.

 

Clayton Tiny Home Next to Pond

 

How was the home constructed? Who built this tiny home?

Your lender likely wants to be sure the home was built by a qualified builder based on the popularity of people building their own Tiny Houses on Wheels (THOWs). Clayton Designer Series tiny homes are built by trained team members in a climate controlled tiny home building facility with quality materials using a streamlined building process.

 

Additionally, the Designer Series tiny homes are small modular homes, not THOWs or Park Model RVs (PMRVs). This means that the homes are built to all applicable state and local building requirements.

 

Is your tiny home safe?

Because your tiny home has been built to all applicable state and local building requirements, it is just as safe as other homes that are built according to applicable building code.

 

Additionally, lenders may be concerned about the safety of the home once it is set up and on-site construction is finished. Your home will be built on a secure, permanent foundation, so yes, it is safe.

 

Designer Tiny Home Front Porch and Foundation

 

Will it have a permanent foundation? 

Clayton Designer Series tiny homes are off-frame modular homes which means after being delivered to your final tiny home site, your new tiny home will be removed from the steel frame and permanently placed on the recommended foundation for your area.

 

How do you intend to use your tiny home? As a permanent residency? A vacation home?

A lender may want to know this for the same reason any lender wants to know if you’re purchasing a vacation property or a rental home. If your new tiny home will be your favorite luxurious destination for vacation, many lenders require you to have reserves and the amount required for a down payment will likely be higher.

 

Inside of Designer Tiny Home Living Room and Kitchen

 

Once most lenders discover that your tiny home is a safe home, built to applicable building code by experienced team members and will be constructed on a permanent foundation in the local area, they will be happy to work with you to figure out the best financing option.

See Clayton Tiny Homes

Topics Tiny Homes