The tiny house or modular home is a trend right now, "living small". Currently the parking space question is still a challenge in Germany. Pitch question because the Tiny-House is "movable" and therefore not a house in the classic sense of the word. It is rather a mobile home. That's why a Tiny-House can't be put up so easily on a plot of land, the German building law puts up some hurdles.
Tiny house or modular home financing with affordable monthly payments
This brings us to the next hurdle: Funding.
Today, a Tiny House quickly costs 40.000 €, 50.000 € and more. Also with the modular houses the purchase prices of 70.000 or even 120.000 euros not so rare. Not everyone who wants a Tiny House can pay cash for it. Unlike a traditional home loan, the Tiny House does not represent real collateral for the bank. Also, many Tiny Houses are on leased land. Thus there is for Tiny houses only the financing solution over an installment credit. With this form of credit, only personal creditworthiness counts.
Installment loans are much more expensive and have to be repaid faster compared to real estate financing. This means significantly higher monthly repayments as installment loans usually have to be repaid in 10 years.
That's exactly why repayment within 10 years is the rule with many bank partners.
The solution: special Tiny House financing
One of our banking partners is now offering special Tiny House and modular home financing. Again, you do not need a land charge as collateral, your personal credit rating and your Tiny House or. Reach out for a modular house. But unlike conventional installment loans, financing amounts of up to 100.000 euros can be realized. The maximum term is 20 years.
The general conditions of the Tiny House financing:
- Minimum loan amount 20.000 Euro to 100.000 euros
- for employees, workers, civil servants (no freelancers and self-employed)
- Debit interest rate fixed for 10 years
- Maximum loan term 20 years
- Special repayment option: 5 % of the original loan amount
- Partial payments possible
Financing example for a Tiny House
Loan amount: 100.000 Euro
Monthly installment (interest + repayment): 635,90 Euro
Fixed debit interest rate p.a.: 4,56 %*
effective annual interest rate: 4.69 % p.a.*
*interest subject to change, as of 02.01.2023
Assumptions Example calculation: Contract term 10 years, net loan amount 100.000 euros, repayment 3.08 % p.a., monthly installment 635,90 Euro, 240 installments (first installment is 635,90 Euro and the last installment is 638,71 Euro), total amount 152.613.19 euros, 4.56% fixed borrowing rate p.a., effective annual interest rate 4,69 % p.a., Total term 20 years.
Request offer here
Can one finance only a "classical" Tiny House over a bank?
All mobile forms of housing can be financed. Here are some examples: Modular home, containers, houseboats, caravans, circus wagons.
Is it possible to finance a Tiny House without equity capital??
The Tiny House or modular house can be financed including the interior equipment such as kitchen, bathroom and oven and the connection costs. Also the costs for the evtl. Point foundation can be financed with. In plain language, there is no need to put in your own money. Decisive is always the monthly installment burden is sustainable in the long term.