Postponing The Tiny House | Week 44
“Working to make a better future for yourself is more productive than waiting on luck.” – Bryce Ward 3/6/2021
This past few months I have been working towards building my first tiny house. I have picked out a builder to construct the tiny house and have insurance ready to go. The only thing left is to find a lender and take out a loan to cover the cost. However as I have been doing my research and reaching out to possible lenders I kept hitting roadblocks.
The Plan Moving Forward
As a young professional I have limited job and credit history which in turn is making the terms of the loans unfavorable. For example, for me to get a $100,000 loan through the builder’s bank I would need to have my parents co-sign and put down 20% in addition the monthly payments would be roughly $1,500 a month. For me that simply will not work as I would be using up all of my reserve cash. Leaving me with nothing in the bank in case of an emergency. I would be more comfortable having roughly a years worth of payments ready to go just in case I were to lose my main source of income. Moving forward I plan to postpone the purchase of a tiny house for up to one year or until I reach $40,000 in savings with a consistent income of $2,000 or more. This way I can build up my wealth and development my credit and job history so that I can secure better terms for a loan.
Hey, thank you for reading this week’s post! I hope you found this week’s post insightful into my tiny house hunt. Have you taken out a loan for a large purchase? What was your experience working with a lender?