Traditional mortgages are the most common way to finance a new tiny home.
The key is that the structure has to be permanent (stick built and on a foundation like we provide) to be financed with a mortgage. And, depending on the loan type, it usually needs to be at least 400 square feet (or at least 600 square feet for Fannie Mae loan programs). We work with many national and local lenders who can assist you in getting the financing you need. This information will be provided in our free property assessment as well.
5 home equity loans to fund your ADU
CCM ADU
- Consolidate ADU costs through a limited rate-and-term refinance
- Rental income from ADU may be used to qualify
- Fannie Mae guidelines apply
- Available with 30 and 15-year fixed-rate terms
CCM Equity Express
- Funding in as few as 5 days
- Maximum loan amount of $400K
- Minimum credit score: 620
- Available with 5, 10, 15 & 30-year fixed-rate terms
- 1st, 2nd, and 3rd lien positions available
First Lien HELOC
- HELOC allowed if primary residence is owned
free and clear - Maximum loan amount of $500K
- Max loan-to-value (LTV): 80%
- Minimum credit score: 700
- 5-year interest-only draw period followed by a
25-year fully amortizing repayment period
Renovation HELOC
- Loan amounts: $50K – $500K
- Max combined LTV:
As is – 125%
Post-renovation value – 90% - Minimum credit score: 660
- 10-year interest-only draw period followed by
a 20-year fully amortizing repayment period
Closed End Second Loan
- Maximum loan amount of $500,000
- Max LTV: 95% (with 740 credit score)
- Minimum credit score: 660
- HELOC available with a 10-year interest-only
draw followed by a 20-year fully amortizing
repayment period - HELOAN available with 5-30 year fixed-rate terms
4 ways you can finance an ADU
Fannie Mae HomeStyle® Renovation
- 1-4 unit properties and condos qualify
- Available for non-primary residences
- 620 minimum credit score
- 95% maximum loan-to-value (LTV) (97%
for 1 unit first-time homebuyers or with a
HomeReady Mortgage®*) - Maximum project amount of 75% after
improved value/total acquisition
FHA 203(k) Standard
- 1-4 unit, condos, and mixed-use properties qualify
- Primary residences only
- 600 minimum credit score
- 97.75% maximum LTV
- No maximum project amount
- Addition must be attached by a wall to the
existing structure
Freddie Mac ChoiceRenovation®
- 1-4 unit properties and condos qualify
- Available for non-primary residences
- 620 minimum credit score
- 95% maximum LTV (1 unit – 97% with HomePossible®*)
- Maximum project amount of 75% after improved value/total acquisition
Renovation HELOC
- Loan amounts: $50K – $500K
- Max combined LTV:
As is – 125%
Post-renovation value – 90% - Minimum credit score: 660
- 10-year interest-only draw period followed by a 20-year fully amortizing repayment period
Ready to Embrace the Tiny Home Lifestyle?
Take the first step toward your dream living space with Timeless Tiny Homes. Whether you’re downsizing, looking for a sustainable living solution, or just need a cozy getaway, we’ve got you covered.
Contact us today to explore our designs, discuss customization options, and start your journey toward a simpler, more fulfilling lifestyle. Let’s make your vision of a perfect tiny home a reality—reach out now and transform the way you live!
