16 Feb 2022

Can You Get a Conventional Mortgage on a Tiny House?

Conventional Mortgage and Tiny Homes

A conventional mortgage helps homebuyers finance the purchase of a single-family home. It has a specific purpose and strict requirements. Borrowers must provide a 20% deposit plus three months worth of bank statements and payslips. When a homebuyer cannot meet these requirements, they must apply for different home loans that fit their financial situation.

Moreover, conventional mortgages have a minimum. Most lenders will not lend less than $100,000 for a home loan. In Australia, tiny homes cost well below $100,000. The most expensive tiny house sits at an estimated $85,000. Even though a tiny home purchase does not qualify for a home loan, it’s possible to find other products to finance it. For example, a personal loan is one option. Some lenders offer caravan loans specifically to finance this purchase. The Australian government classifies tiny houses as caravans.

Mortgage House is a non-bank lender that offers a range of financial solutions to clients. If you have an interest in purchasing a tiny house, our loan specialists can provide the best product. After a conversation with them, they can guide you to the appropriate loan. Then you can submit your application. It’s important to apply for the right loan from the beginning. This prevents delays in the application process. Once you complete your purchase, you save on rent. Although the tiny home doesn’t build home equity as a residential house does, it’s still a great way to start saving for your dream home. Plus, Mortgage House clients receive access to more products including our business loan.

Conventional Mortgage and Tiny Homes Conclusion

Even though a conventional mortgage cannot finance the purchase of a tiny home, Mortgage House offers alternate financing solutions. Contact our loan specialists to explore your options.

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