I'm honestly open to any and all advice on what to do next. Also, please hit the like button - or leave a comment saying anything to help me beat the youtube algorithm. Thanks 🙏
Just as with land, you don't have to own the Tiny Home. Find a Tiny Home seller or Builder and layout the mutual benefits of a partnership. Such as, the use of your scenic land and Airbnb to basically stage an open house for potential buyers (they get to try it before buying it) while generating income from the Tiny House prior to a sell. If you can create a successful model around that concept, you will basically have unlimited opportunity with minimum investment.
We built our tiny home using a zero interest for 2 years Home Depot credit card offer when you make a large purchase. They send these offers to me every month so I just had to have it all planned out upfront. Less than $15k for the materials. So it’s basically no upfront cost. You can have up to 3 cards (6 if your wife gets 3 too). Also go to the pro desk and they will cut you a deal on the materials. We bought the trailer it’s on separately but if we didn’t put it on a trailer the entire thing could have been purchased from HomeDepot using the no interest deal. Our plan is to keep paying the cc off and building new houses as we pay off the cc.
21st Mortgage financed my tiny house. I live in my house full time in a tiny house community. But am looking for land now to put it on once my lease is up. It was a quick and easy process. 21st Mortgage prefers you have a 650 Fico score or higher, but if you don't they usually just require a higher deposit. Triad credit union and Light stream also finance tiny houses. But try 21st for sure
I just finished my application with 21st Mortgage to do a Cash Out Refi! Fingers Crossed. I'm also looking for land in a high vacation STR market so I can Airbnb it.
I have been very nervous to try 21 Mortgage because of a terrible experience I had with them a while back. We had to refinance in order to get out from under them for our mortgage. If you see this comment, please let me know if they are still working well for you. Thanks for the other options as well.
I got my tiny house financed last year through Escape tiny homes and the bank they work with, they have different priced homes from$50k-80k, I also don't have a w2 which I was worried about but I got approved in less than a day, of course I don't know you're credit and DTI specifics but considering they approved without a w2 might want to check them out.
You could consider a cute log cabin park model home. A lot of the mobile home dealers have their own financing programs. I know it’s frustrating to be turned down for financing. To be successful you are going to have to play the credit game until you have established credit. Just pay off your credit card every month and use it like a debit card. Never pay interest. Best of luck to you. I know you’re determined and you will figure out a way to get it done. I’m rooting for you!!
I hear you man. I was denied plenty of bank loans when I wanted to build my next tiny structure. And as a self-employed person too, it did not make it any easier. However, I did have success getting a construction loan from a big box retailer. In the end, that saved my tail and let me expand. The process was not all that hard and the decision came in a timely manner.
He said “a big box retailer” so I’m guessing *not* a bank but a Home Depot construction loan for materials etc you buy from them?? I’m pretty sure I’ve seen those loans on offer from Home Depot. They market it something like, “got a project to finish? Let us help!”
It’s a shame these banks won’t lend unless you have a long history of borrowing money. My boyfriend went through something similar a few years ago when he tried to buy a home. EVERY bank denied him a home loan because, according to them, he didn’t have “enough credit” . He replied yes, and explained that he has enough on hand to pay cash for cars and pretty much anything we need. He ALSO had a fully paid home and they STILL would not lend, because his Fico report didn’t have enough borrowing. This put us behind in Buying our current place, we ended up renting for another few years because of those denials
Love your channel! Also I feel like a can relate: trying to get financing to build two tiny cabins and I realized that it’s not possible using a conventional construction loan :( If I were you, I would shop around for other RV loans or try to get some small business financing (that’s the route I’m planning to take). Thanks for sharing!
I just found your channel and been watching all your videos , thx for giving us your experience and knowledge . And I’m so happy for you and your journey on your land . Congrats
Have you tried a personal loan? Those are pretty fast and fewer hoops to jump through. I would also maybe consider looking into a container as it gives you the drop-and-done option and it's easier to move it if you ever decide to sell/leave the land.
I've been wanting to convert my garage into a tiny home for ages! But the financing issue definitely stopped me dead in my tracks. I think what I wanted to do next is project manage it myself. But first tear down the garage and get a local custom builder who makes cedar sheds for 3-4k to build me the frame of it first. Then I'll slowly will add all the guts to it (electrical, plumbing etc).
You approached the loan the wrong way. You need to apply for commercial loans that qualify you based on income projections for your business. Sounds like you applied in a way that made it look like a personal / leisure purchase
One thing i've done many times over the years, when i want something and i know i have the cash to pay for it, i don't use my cash, i just put the cash in the bank and borrow against it and use it as collateral. It's a whole lot cheaper than unsecured loan, plus when you pay it off your money is still there in the bank which you can choose to take it out or do the same thing and barrow against it again.
That was so backwards. They want you to accumulated high interest debt before they will give you like you said "a low cost RV with a low payment". Makes no sense at all. You need to establish your own banker. If you are going to the same lender each time, it will make it much easier each time. Please update us when you finally get your loan (you will), those just weren't the right fit for you.
I am going to start doing this - working with the same bank to establish the relationship. I personally hate the game that is credit here in the US but it seems like you have to play it to be successful.
me and a friend of mine make the exact same amount every month with SSI, and I mortgage while she still pays on the rent-to-own crap.......moral here is, save your money and stop putting yourself in debt because a penny earned is at least 30% less than a penny saved "but a mortgage is still a debt" i hear you say, and you are completely right...due to some bad slumlords in my city it was either mortgage or homelessness, but i still wish i couldve had the time to save up
Most RVs are poorly constructed. I looked at a new one on the show room floor at Camping World & the cabinet door fell off in my hand when I gently opened it. I looked closer at how it was put together; staples were used instead of long lasting screws! Nearly a $100k for a cobled together tin can that has ultra cheap "necessities" that a sticks-n-bricks house has. No thanks! The bank did you a favor by denying you the loan. For a fraction of the $, I know you could find or build something a hell of a lot better, cuter even! Good luck & thanks for your videos 👍.
Manufactured homes that aren’t tied into property are considered personal property almost like a car. Banks are more hesitant because it’s not tied to any land, therefore not considered real estate. These loans are usually shorter terms and a bit higher interest than a typical mortgage. They are called chattel mortgages/loans. There’s lenders that do these type of loans out there but typically the home has to be a certain size to qualify for a manufactured home mortgage. You would have to take out a personal loan to buy most tiny homes which comes at much higher interest rates etc. Not many big banks do tiny home mortgages because they are considered too risky.
How did you develop the land and get utilities out to it? I'm thinking about doing something like this, but everybody's trying to talk me out of it. I don't want to go off grid, I just want the security of knowing I own the land I'm living on, as well as the tiny house.
I find it very irritating: if you try to be responsible and only buy things when you have the money, you're penalized when you need to finance a large purchase, such as a vehicle or home.
That is the worst part of all this! Its like you have to play their game. It sucks but I have started working on building up a credit history to play the game so i can have more purchasing power in the future.
The kit was just the cabin, no bathroom. We built a bathroom outside. I put it up myself as much as I could and had help from one builder towards the end when my friends had to get back to their day jobs. The complete cabin build video is here: ua-cam.com/video/c7ZLVy6Fa3A/v-deo.html
What about a DSCR loan? If the assessor can prove your rental will make good money, you should be good. They don't take your credit into consideration. That's my understanding.🤔
I haven't done too much research on them but i am familiar. They make a great product at a great price point. From all accounts i have found they have great reviews too. My only though about their incred-i-box is that upon buying it you would need to do some work to get it ready for glamping or airbnb. It is very raw and looks industrial. That could be a cool vibe to lean into. the vibe of my glamp site is a bit more polished. That being said, i am now thinking of getting a tiny home from them after this comment so thanks for putting them back on my radar. I feel like with some new floors inside and a new exterior facade their tiny home could look really cool. sorry if this response was too long lol. I get jazzed up about this stuff.
They only finance certain lower priced homes and only up to 48 months! The max they'll finance is not very much! They've been on our radar! We've called and scheduled a tour there!
ITH has a $15,000 deal on the RJO right now for 2 weeks. It wouldn’t be ready until October but you could get a signature loan in that range with your credit score. I know it needs a little work but not much. Throw the bay window on for another $2,500 and enjoy that view. The style also matches your A frame. Thanks for sharing your experience either way. That took some guts. Subbed.
The problem with ITH is that they charge a high buy in fee that in non refundable and you have to sign a nda saying you will not bad mouth company after you purchase your home even if you have issues . Just check out every builder . Also many customers have been waiting for their tiny home for 4 years .
With this channel and Airbnb you should apply for 0% business credit cards and lines of credit. They might pull your personal credit to verify you but after that they don’t report to personal credit bureaus only the business credit bureaus so utilization isn’t a problem! 2-3 high value business cards are unconventional ways people build tiny houses, small condos to flip and skoolies/van life fit out.
The current rates and economy are so whack at the moment. Banks are just freaking out. The economy and war looming, things are just broken. Not to mention inflation. Good luck to you.
It's though to move trough this world thinking that others owes us something and then be surprised when we get a reality check . Good learning experience tho..
I'm honestly open to any and all advice on what to do next. Also, please hit the like button - or leave a comment saying anything to help me beat the youtube algorithm. Thanks 🙏
Just as with land, you don't have to own the Tiny Home. Find a Tiny Home seller or Builder and layout the mutual benefits of a partnership. Such as, the use of your scenic land and Airbnb to basically stage an open house for potential buyers (they get to try it before buying it) while generating income from the Tiny House prior to a sell. If you can create a successful model around that concept, you will basically have unlimited opportunity with minimum investment.
We built our tiny home using a zero interest for 2 years Home Depot credit card offer when you make a large purchase. They send these offers to me every month so I just had to have it all planned out upfront. Less than $15k for the materials. So it’s basically no upfront cost.
You can have up to 3 cards (6 if your wife gets 3 too). Also go to the pro desk and they will cut you a deal on the materials.
We bought the trailer it’s on separately but if we didn’t put it on a trailer the entire thing could have been purchased from HomeDepot using the no interest deal.
Our plan is to keep paying the cc off and building new houses as we pay off the cc.
21st Mortgage financed my tiny house. I live in my house full time in a tiny house community. But am looking for land now to put it on once my lease is up. It was a quick and easy process. 21st Mortgage prefers you have a 650 Fico score or higher, but if you don't they usually just require a higher deposit. Triad credit union and Light stream also finance tiny houses. But try 21st for sure
I just finished my application with 21st Mortgage to do a Cash Out Refi! Fingers Crossed. I'm also looking for land in a high vacation STR market so I can Airbnb it.
I have been very nervous to try 21 Mortgage because of a terrible experience I had with them a while back. We had to refinance in order to get out from under them for our mortgage. If you see this comment, please let me know if they are still working well for you. Thanks for the other options as well.
I'm excited to see what you choose to do moving forward. This door is closed and another will open.
Thanks for being so open and honest about your experience!
I got my tiny house financed last year through Escape tiny homes and the bank they work with, they have different priced homes from$50k-80k, I also don't have a w2 which I was worried about but I got approved in less than a day, of course I don't know you're credit and DTI specifics but considering they approved without a w2 might want to check them out.
What was used instead of w2? I am self employed so I don't have w2.
You could consider a cute log cabin park model home. A lot of the mobile home dealers have their own financing programs. I know it’s frustrating to be turned down for financing. To be successful you are going to have to play the credit game until you have established credit. Just pay off your credit card every month and use it like a debit card. Never pay interest. Best of luck to you. I know you’re determined and you will figure out a way to get it done. I’m rooting for you!!
I hear you man. I was denied plenty of bank loans when I wanted to build my next tiny structure. And as a self-employed person too, it did not make it any easier. However, I did have success getting a construction loan from a big box retailer. In the end, that saved my tail and let me expand. The process was not all that hard and the decision came in a timely manner.
What bank gave you the loan if you don’t mind me asking? I’m looking for one now
He said “a big box retailer” so I’m guessing *not* a bank but a Home Depot construction loan for materials etc you buy from them?? I’m pretty sure I’ve seen those loans on offer from Home Depot. They market it something like, “got a project to finish? Let us help!”
Damn that's rough, sorry to hear that you had to go through all of that!
Silicon Valley Bank would have given him a loan 🤪
It’s a shame these banks won’t lend unless you have a long history of borrowing money. My boyfriend went through something similar a few years ago when he tried to buy a home. EVERY bank denied him a home loan because, according to them, he didn’t have “enough credit” . He replied yes, and explained that he has enough on hand to pay cash for cars and pretty much anything we need. He ALSO had a fully paid home and they STILL would not lend, because his Fico report didn’t have enough borrowing. This put us behind in Buying our current place, we ended up renting for another few years because of those denials
I know this problem hurts you man. Sorry things didn't go your way.
still watching but would love to see a 2-3 years in, what i'd do differently with my first airbnb video!
Love your channel! Also I feel like a can relate: trying to get financing to build two tiny cabins and I realized that it’s not possible using a conventional construction loan :( If I were you, I would shop around for other RV loans or try to get some small business financing (that’s the route I’m planning to take). Thanks for sharing!
I just found your channel and been watching all your videos , thx for giving us your experience and knowledge . And I’m so happy for you and your journey on your land . Congrats
You are so welcome! Thank you for leaving a comment and supporting my channel, me, and my dream of growing and helping people here on youtube!
Have you tried a personal loan? Those are pretty fast and fewer hoops to jump through. I would also maybe consider looking into a container as it gives you the drop-and-done option and it's easier to move it if you ever decide to sell/leave the land.
Tbh it sounds like those banks were racist. There are so many stories of other people getting loans without any problem. I'm so sorry man.
you should build a tiny home from scratch and make videos showing us how to build our own
That sounds fun and difficult. It certainly isn't off the table though. Thanks for the idea.
@@KeepItTiny Working with wood is pretty easy. You can do it!!
I've been wanting to convert my garage into a tiny home for ages! But the financing issue definitely stopped me dead in my tracks. I think what I wanted to do next is project manage it myself. But first tear down the garage and get a local custom builder who makes cedar sheds for 3-4k to build me the frame of it first. Then I'll slowly will add all the guts to it (electrical, plumbing etc).
You approached the loan the wrong way. You need to apply for commercial loans that qualify you based on income projections for your business. Sounds like you applied in a way that made it look like a personal / leisure purchase
Good point
That's really smart. Thanks for sharing.
Very interesting story!
thanks for listening 🙏
One thing i've done many times over the years, when i want something and i know i have the cash to pay for it, i don't use my cash, i just put the cash in the bank and borrow against it and use it as collateral. It's a whole lot cheaper than unsecured loan, plus when you pay it off your money is still there in the bank which you can choose to take it out or do the same thing and barrow against it again.
That was so backwards. They want you to accumulated high interest debt before they will give you like you said "a low cost RV with a low payment". Makes no sense at all. You need to establish your own banker. If you are going to the same lender each time, it will make it much easier each time. Please update us when you finally get your loan (you will), those just weren't the right fit for you.
I am going to start doing this - working with the same bank to establish the relationship. I personally hate the game that is credit here in the US but it seems like you have to play it to be successful.
me and a friend of mine make the exact same amount every month with SSI, and I mortgage while she still pays on the rent-to-own crap.......moral here is, save your money and stop putting yourself in debt because a penny earned is at least 30% less than a penny saved
"but a mortgage is still a debt" i hear you say, and you are completely right...due to some bad slumlords in my city it was either mortgage or homelessness, but i still wish i couldve had the time to save up
Most RVs are poorly constructed. I looked at a new one on the show room floor at Camping World & the cabinet door fell off in my hand when I gently opened it. I looked closer at how it was put together; staples were used instead of long lasting screws! Nearly a $100k for a cobled together tin can that has ultra cheap "necessities" that a sticks-n-bricks house has. No thanks!
The bank did you a favor by denying you the loan. For a fraction of the $, I know you could find or build something a hell of a lot better, cuter even! Good luck & thanks for your videos 👍.
Manufactured homes that aren’t tied into property are considered personal property almost like a car. Banks are more hesitant because it’s not tied to any land, therefore not considered real estate. These loans are usually shorter terms and a bit higher interest than a typical mortgage. They are called chattel mortgages/loans. There’s lenders that do these type of loans out there but typically the home has to be a certain size to qualify for a manufactured home mortgage. You would have to take out a personal loan to buy most tiny homes which comes at much higher interest rates etc. Not many big banks do tiny home mortgages because they are considered too risky.
How did you develop the land and get utilities out to it? I'm thinking about doing something like this, but everybody's trying to talk me out of it. I don't want to go off grid, I just want the security of knowing I own the land I'm living on, as well as the tiny house.
Love this video and your channel.
I find it very irritating: if you try to be responsible and only buy things when you have the money, you're penalized when you need to finance a large purchase, such as a vehicle or home.
That is the worst part of all this! Its like you have to play their game. It sucks but I have started working on building up a credit history to play the game so i can have more purchasing power in the future.
Where’s the bathroom in the kit? Also, did you put it up yourself or did you hire contractors to put it up?
The kit was just the cabin, no bathroom. We built a bathroom outside. I put it up myself as much as I could and had help from one builder towards the end when my friends had to get back to their day jobs. The complete cabin build video is here: ua-cam.com/video/c7ZLVy6Fa3A/v-deo.html
What about a DSCR loan? If the assessor can prove your rental will make good money, you should be good. They don't take your credit into consideration. That's my understanding.🤔
Have you tried Incredible Tiny Homes in Newport Tennessee? They do 5,000 down 0 interest financing
I haven't done too much research on them but i am familiar. They make a great product at a great price point. From all accounts i have found they have great reviews too. My only though about their incred-i-box is that upon buying it you would need to do some work to get it ready for glamping or airbnb. It is very raw and looks industrial. That could be a cool vibe to lean into. the vibe of my glamp site is a bit more polished. That being said, i am now thinking of getting a tiny home from them after this comment so thanks for putting them back on my radar. I feel like with some new floors inside and a new exterior facade their tiny home could look really cool.
sorry if this response was too long lol. I get jazzed up about this stuff.
They only finance certain lower priced homes and only up to 48 months! The max they'll finance is not very much! They've been on our radar! We've called and scheduled a tour there!
ITH has a $15,000 deal on the RJO right now for 2 weeks. It wouldn’t be ready until October but you could get a signature loan in that range with your credit score. I know it needs a little work but not much. Throw the bay window on for another $2,500 and enjoy that view. The style also matches your A frame. Thanks for sharing your experience either way. That took some guts. Subbed.
The problem with ITH is that they charge a high buy in fee that in non refundable and you have to sign a nda saying you will not bad mouth company after you purchase your home even if you have issues . Just check out every builder . Also many customers have been waiting for their tiny home for 4 years .
I tried SBA for a glamping project in New York , got turn down. I have a complete project on paper but they just don't get it
With this channel and Airbnb you should apply for 0% business credit cards and lines of credit. They might pull your personal credit to verify you but after that they don’t report to personal credit bureaus only the business credit bureaus so utilization isn’t a problem! 2-3 high value business cards are unconventional ways people build tiny houses, small condos to flip and skoolies/van life fit out.
Credit score is good what about ratio of your income -vs- what you owe out?
Is this true if you are buying a tiny house to actually BE your home?
The current rates and economy are so whack at the moment. Banks are just freaking out. The economy and war looming, things are just broken. Not to mention inflation. Good luck to you.
Did you offer to put any money down?
Also build business credit. There are tons of free resources on how to do it. But I know a few credit businesses that will do all the work for you..
Build business Credit
It's though to move trough this world thinking that others owes us something and then be surprised when we get a reality check . Good learning experience tho..
I def don't think anybody owes me anything ... where in this video did you get that impression?
SIMILAR BOAT... prefab for now
I am looking into pre-fabs
You lucked out. A Tiny Home on a trailer is the worst investment you could have ever made. Build a actual small home.
Why do you say that? I know there isn't equity to be gained from a tiny home on a trailer, is that why you say that?
@@KeepItTiny Even on your own land you could find out it's not legal to live in. County's are making it tougher and tougher to do so.
@@mxbadboy263 true, I’m not legally allowed to live in it full time. It has to be a second place for me.