Do Banks Lend on Tiny Homes?
Potential borrowers and homeowners who are researching the various types of loans available for the purchase of tiny homes may wonder if financing is a possibility. Potential borrowers interested in purchasing a tiny home can expect to pay between $3,000 and $5,000 per square meter, with some tiny homes costing as low as $11,000 or as high as $85,000. Tiny homes are generally considered to be caravan homes by the Australian housing agencies. For this reason, banks may or may not lend on tiny homes.
When a bank decides to lend on a tiny home, they lend differently than traditional family homes because of their classification as caravan homes. For this reason, banks will generally lend through caravan loans or personal loans. Non-traditional home loan providers also offer personal and caravan loans to potential borrowers looking for assistance with funding the purchase of a tiny home, such as Mortgage House.
In Australia, tiny homes are becoming popular housing options due to the rising prices of the Australian housing market and the potential of breaking into the housing market and purchasing a home quickly. Countless Australians genuinely enjoy living in tiny homes due to their cost-effective and affordable nature.
Potential borrowers and homeowners who are interested in learning more about purchasing a tiny home with a caravan or personal loan should reach out to the Mortgage House team of professional home loan providers for in-depth information and assistance.