Can You Get a VA Loan for a Tiny House? A Complete Guide

Tiny houses have exploded in popularity in recent years. Their small size and low cost make them an appealing option for many buyers But can you get a VA loan for a tiny house? Let’s take a deep dive into the ins and outs of using VA loans for tiny homes.

What is a Tiny House?

First, what exactly is a tiny house? There are a few key features that define these pint-sized homes:

• Small square footage – Tiny houses are generally less than 400 square feet The typical size ranges from 100 to 400 square feet

• Compact design – Everything in a tiny home is designed to maximize space. Features like lofts, fold-down tables, and multi-purpose furniture are common.

• Mobility – Many tiny houses are built on trailers so they can be moved from place to place. However, some are built on permanent foundations.

• Affordability – Their small size makes tiny homes much cheaper to build and maintain than traditional houses. Costs often range from $20,000 to $100,000.

• Customization – Tiny houses allow for flexibility and personalization in layouts and design features. You can customize to fit your needs.

Can You Get a VA Loan for a Tiny House?

The short answer is yes, it is possible to get a VA loan for a tiny house in some cases. However, there are strict requirements tiny houses must meet to qualify for VA financing.

Here are some key criteria the VA has for tiny houses:

• Permanent foundation – The home cannot be on wheels. It must be attached to a permanent foundation.

• Minimum 400 square feet – The VA requires a minimum of 400 square feet of living space.

• Kitchen, bathroom, and sleeping areas – The home must have dedicated space for cooking, bathing, and sleeping.

• Connected utilities – It must have electric, water, sewer, etc. hooked up.

• Meets building codes – Any local building codes must be met.

• Appraises for VA value – The appraisal must show the value meets VA requirements.

As you can see, VA loans can work for tiny houses, but they still have standards the home must live up to.

Challenges of Using a VA Loan for a Tiny Home

While VA financing is possible for tiny houses, it can be difficult to actually get a loan. Here are some key obstacles borrowers often face:

• Appraisals – It can be hard for appraisers to find comparable tiny home sales needed to value the property. This makes it tough to meet the VA’s minimum appraisal standards.

• Limited space – Even if over 400 square feet, some tiny homes may fall short of having enough clear living, sleeping, and storage space to satisfy VA requirements.

• Finding lenders – Not all lenders are open to doing VA loans on tiny houses. You may need to shop around to find one willing to consider such a small property.

• Zoning issues – Local zoning laws may prohibit building or placing a tiny home on a property. Be sure to check regulations.

While challenges exist, it’s still possible to overcome them with extra planning and preparation.

Tips for Using a VA Loan on a Tiny Home

If you want to buy a tiny house with a VA loan, here are some tips to improve your chances of success:

• Find land that allows tiny homes – Research areas with zoning laws that permit building tiny houses. Ensure utilities are available.

• Build over 400 square feet – Go a bit over the minimum size to provide comfortable space and help meet VA requirements.

• Include all required spaces – Be sure your design has dedicated sleeping, kitchen, bathroom, and living areas. Don’t overlook storage space.

• Complete a full build – Constructing on site can make appraisals easier versus moving a finished tiny house onto land.

• Work with a lender experienced with tiny homes – A lender who is familiar with tiny houses will know the VA requirements and appraisal challenges.

• Have a backup plan – Consider conventional financing as a Plan B in case you can’t get VA-approved for your tiny home.

FAQs About VA Loans and Tiny Houses

Can you get a VA loan for a tiny house on wheels?

No, the VA requires the home be placed on a permanent foundation, so tiny houses on trailers do not qualify.

What is the smallest tiny house you can get a VA loan for?

The VA requires a minimum of 400 square feet of living space. However, lenders may still reject loans on homes under 500 square feet.

Can you buy land and a tiny house in one VA loan?

Yes, you can potentially finance both the land and tiny house construction in a single VA construction loan.

Are mobile homes eligible for VA loans?

Yes, if the mobile home is attached to a permanent foundation and meets other VA criteria. Requirements are similar to tiny homes.

Can I build a tiny house myself and get a VA loan?

You can build your own tiny house, but will likely need a construction loan first. After it’s completed, you may be able to refinance into a VA loan.

Is a Tiny House Right for You?

Tiny living isn’t for everyone. Before jumping in, be sure to carefully consider:

• Your lifestyle and space needs
• Ability to live with less storage and possessions
• Local zoning laws and placement options
• Resale value and long-term viability
• Backup plan if you can’t get VA-approved

But if minimalism appeals to you, a tiny home can provide cozy, affordable housing. Just weigh all the pros and cons before committing.

Explore Your VA Loan Options

VA loans provide a great opportunity to buy a home with no down payment. If you love the idea of tiny house living, a VA loan may help make it possible. There are challenges to overcome, but VA financing can work in many cases. Be sure to work with an experienced lender who understands the VA guidelines. This gives you the best shot at buying the perfect tiny home.