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Personal Loans

Citibank Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Citibank
APR

7.99%
To
17.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

12 to 60

months

Origination Fee

Not specified

APPLY NOW Secured

on Citibank’s secure website

Citibank personal loan details
 

Fees and penalties

  • Term lengths: 12 to 60 months
  • APR range: 7.99%-17.99%
  • Loan amounts: $2,000-$50,000
  • Time to funding: Checks are sent within five business days of approval.
  • Credit check: Hard Pull
  • Origination fee: Not specified
  • Prepayment fee: No
  • Late payment fee: Not specified
  • Other fees: Not specified

Citibank product details

Perks offered to Citibank personal loan customers aren’t largely advertised online. However, linking a personal loan account to an eligible checking account enrolled in Citi ThankYou Rewards can help earn points on a monthly basis. Points never expire and can be redeemed for gift cards, travel rewards, cash and more. This can allow customers to save money while repaying their loan.

Eligibility requirements

  • Minimum credit score: Not specified
  • Minimum credit history: While a minimum credit score isn’t listed, Citibank does specify that the lowest quoted personal loan rate requires the borrower to have excellent credit.
  • Maximum debt-to-income ratio: Not specified

Citibank personal loans are only available to borrowers with a maximum of one existing personal loan account with the financial institution. If consumers have another Citibank personal loan account, it cannot have been opened within the past six months. Qualified applicants are also required to have a minimum annual income of $10,500.

It’s also worth noting that anyone who wants to apply for a personal loan online must either be a current Citi checking or savings account customer registered for Citibank online or have received a Citi Personal Loan offer with an invitation number. Without an invitation, current customers who don’t have online account and non-customers must apply in person at a Citibank branch or call a

Applying for a personal loan from Citibank

Personal loans are available in increments from $2,000 to $50,000, but applications cannot be submitted online for amounts exceeding $30,000. Applicants who wish to borrow up to $50,000 must call 1-877-362-9100 or visit a Citibank branch location.

Depending on the requested loan amount, prospective borrowers with a current Citi checking or savings account who are registered for Citibank online and anyone who has received a Citi Personal Loan offer with an invitation number can submit a personal loan application online. Everyone else must apply in person at a Citi branch or call 1-877-362-9100.

To begin the online application process, current Citibank customers registered for online access will need to enter their user ID and password. Non-Citibank customers who have received a Citi Personal Loan offer with an invitation number will be directed to an application site and asked to enter the invitation code, their last name and zip code. Do note, credit scores are not impacted for viewing the personal loan offer. Upon approval, a check for the full amount of the loan will be mailed within five business days.

Pros and cons of a Citibank personal loan

Pros:

Cons:

  • Fixed rate: Citibank personal loans come at a fixed rate, allowing borrowers to enjoy fixed monthly payments. Do note, defaulting on the loan may come at the cost of a 2% APR increase.
  • No hidden fees or prepayment penalties: Borrowers don’t have to worry about being hit with added costs attached to the loan.
  • Competitive rates: Fixed rates range from 7.99% APR to 17.99% APR.
  • Flexible terms: Borrowers can choose from a variety of repayment terms, consisting of 12 to 60 months.
  • Fast cash: Checks for the full amount of the approved loan are mailed within five business days.
  • Limited online application access: To apply online, prospective borrowers must either be a current Citi checking or savings account customer registered for Citibank online or have received a Citi Personal Loan offer with an invitation number. Without an invitation, current customers who don’t have an online account and non-customers must apply in person or by phone.
  • Loan amount constraints: To receive the lowest quoted rate, borrowers must use Citibank Auto Deduct to repay the loan, have excellent credit, borrow at least $10,000, have a loan term of 36 months or less and sufficient relationship balances.

Who’s the best fit for a Citibank personal loan?

A Citibank personal loan can be a great option for consumers with a one-time need to borrow money. Specifically, Citibank customers willing to repay their loan with Citi Auto Deduct, who have excellent credit, need to borrow at least $10,000, can repay the loan within 36 months and have sufficient relationship balances are eligible for the most competitive rates.

Loan amounts range up to $50,000, so this product can also be a good fit for consumers who need a higher loan amount. The ability to lock in a fixed rate and face no hidden fees or prepayment penalties can make it good choice for those looking for peace of mind in a fixed monthly payment.

Alternative personal loan options

LightStream

APR

3.34%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.34% APR with a term of 3 years would result in 36 monthly payments of $292.31.


LightStream, a division of SunTrust Bank, offers personal loans from $5,000 to $100,000. Rates are fixed and vary by loan purpose. There are no fees attached to the loan, including prepayment penalties, making it a good choice for consumers who might want to pay the loan off early. Loans can be funded as quickly as one day of approval, so this isn’t the best option for anyone who needs cash fast.

PenFed Credit Union

PenFed Credit Union
APR

Starting at 6.49%

Credit Req.

700

Minimum Credit Score

Terms

60

months

Origination Fee

No origination fee

APPLY NOW Secured

on PenFed Credit Union’s secure website

Pentagon Federal Credit Union (PenFed) offers personal loans with terms up to five years and maximum loan amounts of $25,000.... Read More


PenFed grants personal loans from $500 to $25,000. Along with no origination fee, there’s also no other hidden costs, making it a great choice for borrowers looking to avoid additional expenses. Funds are available immediately, which is advantageous for consumers who need cash now. Do note, personal loans are only available to PenFed members.

SoFi

SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)


SoFi provides personal loans ranging in value from $5,000 to $50,000, making it a good choice for borrowers who need a significant amount of money. Rates are fixed and loans are completely free of fees. Funds are typically deposited in consumers’ accounts a few days after approval and the successful completion of required paperwork. An added bonus, SoFi’s unemployment protection benefit offers an additional layer of security by allowing borrowers to temporarily pause payments and helping them find a new job if they become unemployed.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Laura Woods
Laura Woods |

Laura Woods is a writer at MagnifyMoney. You can email Laura here

TAGS:

Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Personal Loans

U.S. Bank Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

U.S. Bank
APR

7.49%
To
17.99%

Credit Req.

Not specified

Minimum Credit Score

Terms

12 to 60

months

Origination Fee

No origination fees

APPLY NOW Secured

on U.S. Bank’s secure website

U.S. Bank Personal Loan Details
 

Fees and Penalties

  • Term lengths: 12 to 60 months
  • APR range: 7.49%-17.99%
  • Loan amounts: $3,000-$25,000
  • Time to funding: Not specified
  • Credit check: Hard

  • Origination fee: None
  • Prepayment fee: Not specified
  • Late payment fee: Not specified
  • Other fees: Not specified

U.S. Bank product details

The U.S. Bank Premier Loan is an unsecured personal loan that you can use for almost anything. U.S. Bank highlights debt consolidation, home remodeling and major purchases (such as a vacation, wedding or new vehicle) as potential options.

To qualify for the lowest advertised rate, you must have a credit score of 760 and take out between $5,000 and $25,000 loan with a 12- to 48-month term. You also have to sign up for automatic payments from an eligible U.S. Bank account.

But you can get approved with a lower credit score and without signing up for autopay. Additionally, you can choose to borrow as little as $3,000 and your loan’s term could be as long as 60 months.

There is a potential 1% interest rate discount if you use the money to make green home improvements or energy-efficient purchases, which could make this loan a good option if you want to finance a home improvement with an unsecured loans. (Alternatively, a home equity loan or home equity line of credit might offer a lower interest rate and tax benefits.)

If you’ve been a U.S. Bank checking account customer for six months and had direct deposits into the account for the previous consecutive three months, you may also qualify for the U.S. Bank Simple Loan. Although it’s also an unsecured personal loan, the Simple Loan has a $1,000 loan limit and expensive fees. It may be a good alternative to a payday loan if you need to cover an emergency expense, but it’s not a substitute for a large personal loan.

Eligibility requirements

  • Minimum credit score: Not specified, but at least 760 for the lowest advertised rate
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

Besides meeting U.S. Bank’s financial and credit requirements, you’ll need to be at least 18 years old and may need to live within a certain radius of a U.S. Bank branch to qualify for a Premier Loan.

Applying for a personal loan from U.S. Bank

You can start an application for a U.S. Bank Premier Loan by visiting a bank branch, calling a bank representative or with the online application.

Open an account. If you’re not already a U.S. Bank customer, you’ll need to open a different account, such as a checking account, before continuing.

Apply online. When applying online, you can either log in to your U.S. Bank account or continue with an application and mark that you don’t bank online. Fill in your personal and financial information, including your name, address, contact information, income and employer.

Next, you’ll need to choose your desired loan amount (from $3,000 to $25,000) and loan term (from 12 to 60 months). You’ll also need to indicate if you’ll use the money outside the U.S. (and, if yes, in which country), and whether you plan to use the money for an auto purchase, debt consolidation, home improvement or “other.”

You will need to agree to a credit check before reviewing your application results, which could put a hard inquiry on your credit reports and may result in a small ding to your credit scores.

Complete the application in person. After submitting your application online, you’ll need to visit a U.S. Bank branch to finish the application.

Pros and Cons of a U.S. Bank Personal Loan

Pros:

Cons:

  • Fixed interest rate. You’ll know exactly how much you’ll pay each month and don’t need to worry about your rate or payments increasing.
  • $3,000 minimum loan. Only borrowing what you need could help you save money on interest. The $3,000 minimum loan amount is lower than some other lenders’ minimums.
  • 12-month loan term. Other lenders may require you choose a longer term. If you can afford to pay off your loan sooner, a shorter loan term might help you get a lower interest rate.
  • Lowest advertised APR isn’t available on all loans. To qualify for the lowest rate, you need to apply for a loan for $5,000 to $25,000 with a 12- to 48-month term and agree to automatic payments.
  • Limited to existing customers. You need to be a U.S. Bank customer before you can qualify.
  • You have to visit a branch. If you’re looking for a simple, time-saving process, you may want to opt for a lender that offers an entirely online application and funding process.
  • $25,000 limit. Other personal loan lenders might approve you for up to $100,000.

Who’s the best fit for a U.S. Bank personal loan?

If you’re already a U.S. Bank customer, the U.S. Bank Premier Loan could be a good option if you’re looking for an unsecured personal loan to consolidate debts or pay for a major expense. But its drawbacks outweigh the pros.

Think carefully about how long you’ll need to repay the loan because of the possibility of a prepayment penalty. A longer term could help lower your monthly payments, but it will also cost you more in interest. While U.S. Bank offers 60-month term loans, if you’re borrowing at least $5,000, you may want to see if you can get a lower interest rate and still afford your monthly payments with a 48-month (or shorter) term.

If you need a loan quickly and aren’t a U.S. Bank customer, you could look for a loan from a different lender. Additionally, if you’re a U.S. Bank customer but don’t live near a bank branch, you could apply for a personal loan from a different lender and have the money deposited in your U.S. Bank account to save yourself the hassle of having to visit a branch.

Alternative personal loan options

Want to do some comparison shopping on your own? Here are three personal loan lenders that are worth considering.

Earnest

Earnest
APR

6.99%
To
18.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More

Earnest is an online lender that distinguishes itself with an innovative underwriting process. While your credit history and scores are still important, Earnest also considers your history of making payments on time, if you’ve built enough savings to cover your monthly expenses for at least two months and how well you manage your checking account. Even if you don’t have an excellent credit score, being financially responsible could help you get a lower rate.

LightStream

APR

3.34%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.34% APR with a term of 3 years would result in 36 monthly payments of $292.31.

Although it is an online-only lender, LightStream is a division of SunTrust Bank, a brick-and-mortar bank. LightStream doesn’t have an exceptionally high minimum credit score requirement, but don’t let that fool you. The lender focuses on creditworthy applicants. If you can qualify, LightStream offers some of the lowest rates and longest terms. Plus, there are no origination fee or prepayment fees.

SoFi

SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi is an online-only lender that offers personal loans for $5,000 to $50,000 without any origination or prepayment fees. You can pre-qualify for a loan online with a soft pull, which won’t impact your credit scores. An official application still requires a hard pull, though. Once you accept a loan, you’ll be eligible for SoFi member benefits, such as discounts on other loans, career counseling and unemployment protection.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Louis DeNicola
Louis DeNicola |

Louis DeNicola is a writer at MagnifyMoney. You can email Louis at louis@magnifymoney.com

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Get A Pre-Approved Personal Loan

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Won’t impact your credit score

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Personal Loans

How to Finance a Tiny House

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

tiny home financing
iStock

The tiny home movement has been garnering attention online and captivating the media in recent years. As people seek to minimize their expenses and living space to enjoy other areas of life, tiny houses become a viable option. While purchasing a tiny home may sound appealing, there are many factors to consider before downsizing and joining the movement.

We will walk you through different options on how to finance a tiny house, discuss different types of small dwellings, and talk about the pros and cons of living in a tiny home.

What is a tiny home and how much does one cost?

Tiny homes can vary in structure, makeup and size, but they are typically 600 square feet or smaller, according to Tiny Home Builders. For comparison, the average American single-family home is 2,392 square feet, according to the Census Bureau.

Tiny homes can vary dramatically in price. Depending on the location of the home, the materials used to build your tiny home or the selling price of a furnished small dwelling, prices can range from $15,000 to $100,000.

For example, if you decide to DIY (do it yourself) your tiny home, you can expect to pay anywhere from $15,000 to $20,000 in supplies, plus the time and effort it takes to build it. Should you purchase a completed shell from a tiny home vendor such as Tiny Home Builders, you can expect to pay up to $61,000. And tiny houses on the market can exceed $75,000.

While these prices may seem hefty for a tiny home, keep in mind that the average cost of a new home in the U.S. is $395,000.

4 tiny home financing options

Typically, would-be homeowners get a home mortgage to finance the purchase of their house. While some types of tiny homes qualify for a traditional mortgage, others do not.

So, what are your financing options? Here are four financing options to consider as you aim toward purchasing your own tiny home.

1. Home mortgage

Obtaining a traditional mortgage may be difficult for a tiny home because most lenders require a minimum loan amount, which tiny homes often do not meet.

“The bigger issue is probably the appraisal,” said Mitch Mills, lending manager at Sugar House Mortgage in Salt Lake City. “An appraiser is tasked with arriving at a valuation for a property based on recent sales of like properties. In other words, an appraiser would need to be able to find other tiny homes that have sold in the same market area, ideally within the past 90 days.”

To qualify for a home mortgage, the home must be on a traditional foundation.

“Fannie Mae, Freddie Mac and [the Federal Housing Administration] require a property to be situated on a permanent foundation and connected to public utilities. Some of the tiny homes I’ve seen are on wheels, and this would preclude them from being eligible for traditional financing,” Mills explained.

If the tiny home meets size requirements, is traditionally built and is on a permanent foundation, you may be able to acquire a traditional home mortgage. To compare mortgage rates, check out this tool by LendingTree, which owns MagnifyMoney.

2. Home equity line of credit

A home equity line of credit, also called a HELOC, is a type of secondary loan secured by a lien junior to a mortgage. Using a HELOC is another way to finance the purchase of a tiny home.

As you pay down a mortgage, you are building equity in your home. When you use a HELOC, you borrow against the equity you’ve built to secure your secondary loan. For example, if you purchased a $1 million home and have paid off $500,000, you have that much in equity. Using a HELOC, you could get a second mortgage for a specified amount and use that money to purchase your tiny home.

3. Recreational vehicle loan

Some tiny homes are on wheels, making them portable. If they are roadworthy and certified by the RV Industry Association, they may qualify for a recreational vehicle, or RV, loan. LightStream, a division of SunTrust Bank, offers financing up to $100,000, which can  be used for your tiny home purchase.

4. Personal loan

The fourth financing option for a tiny home is a personal loan. A personal loan is an unsecured loan that you can use for any purchase. Once obtained, you can use the borrowed funds for any item, such as a tiny home. Using a personal loan to finance a tiny home can be a good option because you won’t have to get your home appraised or approved to qualify for the loan, allowing you to purchase a tiny home with a foundation or one on wheels.

Personal loans may also be a smart way to finance your tiny home because you can usually borrow up to $50,000 depending on the lender. More information on personal loans to come.

3 personal loan lenders offering tiny home financing

If you choose to finance your home using a personal loan, here are three lenders that offer tiny home financing.

1. LightStream

LightStream offers personal loans that can be used for financing a tiny home. It offers a fixed-rate loan with no fees or prepayment penalties.

  • Terms of loan: 24-84 months
  • APR range: 3.34%–16.99%
  • Origination fee: No origination fee
  • Loan amount range: $5,000–$100,000
  • Credit score required: 660 minimum
APR

3.34%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.34% APR with a term of 3 years would result in 36 monthly payments of $292.31.

2. SoFi

SoFi offers personal loans ranging from $5,000 to $50,000, which would allow you to purchase a tiny home. SoFi offers unemployment protection, making it a unique lender. Should you lose your job with no fault of your own, the lenders will allow you a payment grace period and connect you to job placement services so that you can get back on your feet.

  • Terms of loan: 24 to 84 months
  • APR range: 6.79%–15.49%
  • Origination fee: No origination fee
  • Loan amount range: $5,000–$50,000
  • Credit score required: 680 minimum
SoFi
APR

6.79%
To
15.49%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 6.79% APR to 15.49% APR (with AutoPay). Variable rates from 6.54% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of January 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. . See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.54% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

3. LendingClub

LendingClub is another lender that offers personal loans. Because you can use a personal loan for any reason, it can be used toward your tiny home.

  • Terms of loan: 36 or 60 months
  • APR range: 6.95%–35.89%
  • Loan amount range: Up to $40,000
  • Credit score required: 600 minimum
APR

6.95%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 600.... Read More

What to consider before financing a tiny home

Now that you know your financing options, it’s time to consider if owning a tiny home is the right decision for you. Before moving forward with a new lifestyle of tiny living, consider the pros and cons of owning and living in a tiny home.

Pros of living in a tiny home

Tiny homes can be less expensive than a standard home. For those who don’t want to rent and wish to avoid the large expense of a standard-sized home, tiny homes can be a great option. Opting for a tiny home allows you to cut back on expenses typically associated with homeownership. While you’ll still have to pay for your tiny home upfront, plus utilities and basic living expenses, they will likely be much less compared to a traditional homeowner. Owning a tiny home allows you to feel the pride of homeownership without the financial burden.

Tiny homes can offer financial freedom. Because your mortgage or loan payment will likely be less than a traditional mortgage, you’ll likely have a surplus of discretionary income to spend, giving you financial freedom. If you wish to spend your extra money traveling, pursuing higher education, or investing, owning a tiny home can offer financial freedom.

Tiny homes can provide more free time. With 600 square feet or less, you only have so much space to clean and upkeep. Because you’ll spend less time cleaning your home and doing yardwork, you’ll have more time to enjoy other hobbies. Tiny homes can provide more free time in which you can enjoy life and the things you like to do with it.

Tiny homes can be portable. Homeownership may appeal to you, but you don’t want to be tied to one location. And you don’t want to rent. Because tiny homes can have wheels, you have flexibility. You can settle wherever you like, permitting zoning laws. If you have wanderlust and wish to explore the country without living out of a suitcase, owning a mobile tiny home is a great option that allows you flexibility and movement while still enjoying the stability and comfort of homeownership.

Cons of living in a tiny home

Tiny homes can be hard to place. Because zoning laws vary city to city and state to state, you cannot place your tiny home anywhere you’d like. Flexibility is a double-edged sword. Tiny homes allow you to take your home anywhere, but you’ll have to make sure you’re moving to a place where it’s legal to place your tiny home. Sometimes, the location you desire may not allow for tiny homes.

Tiny homes can be cramped. Tiny homes are, in fact, tiny. That being said, if you wish to entertain guests, space will be very limited. Also, if you are looking for some privacy in a secluded space, your options are sparse since your space is so small. If the thought of lack of privacy gives you anxiety, tiny homes may not be right for you.

Tiny homes don’t have all the amenities of a traditional home. Depending on your tiny home, you may not have certain amenities such as laundry machines, dishwashers or a full-size refrigerator. While this may be a perk of simplifying, it can also frustrate some potential owners. When purchasing your tiny home, ensure it has all the features you need.

Which type of tiny home do you want?

Do the pros of owning a tiny home outweigh the cons? If so, let’s briefly discuss the different kinds of tiny homes available.

  • Tiny traditional homes: Think your typical house but shrunk down to a smaller version. Tiny traditional homes will have a foundation and will be made of the same building materials, such as wood, plywood and concrete. They are not mobile and do not have wheels.
  • Tiny house on a trailer: Simply put, this is just a tiny house on a trailer. It can be moved from location to location when pulled by a truck. Like a traditional tiny home, they are usually built out of normal building materials.
  • Converted storage shed: A storage shed is usually made of steel or galvanized aluminum, but a converted storage shed can be used as a type of tiny home. To make it feel more like a home, owners can install insulation and drywall and design the inside just as they would an apartment or home.
  • Container home: A container home is a storage unit or semitruck shell transformed into a living space. Once revamped, designed and decorated, it doubles as a home for minimalists.

Does your city permit tiny homes?

The last thing to consider before purchasing a tiny home is where you’ll put it. Each city and state has different building codes and zoning laws that can affect where you are legally allowed to place your tiny home.

Some states require the tiny home to be an accessory dwelling unit (ADU), meaning it is on the same property of a traditional home. But some states have begun adopting the idea of tiny housing and have made it more realistic for tiny homeowners to build and live in the state outside of an ADU. These states have more progressive regulations making it easier for tiny house hunters: California, Colorado, Florida, Massachusetts, Michigan, New York, Oregon and Texas.

The American Tiny House Association has compiled state-by-state information regarding zoning laws and construction codes for tiny houses. Check out the complete guide to see if owning a tiny home in your city is possible.

The tiny home movement is gaining popularity and offers a variety of perks for people looking to minimize, downsize and enjoy a flexible lifestyle.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sage Evans
Sage Evans |

Sage Evans is a writer at MagnifyMoney. You can email Sage here

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