An interview with Kai Rostcheck from Tiny House Lending
Kai Rostcheck is convinced that the Tiny House Movement is more than a cottage industry. Last year he launched Tiny House Dating, which exploded and had to be rebuilt after mainstream media caught wind of it. Now he has launched Tiny House Lending, which aims to be “The easiest, fastest way to find funding for your Tiny House purchase!” We got a hold of him to find out whether it’s true: Can Tiny House Enthusiasts now get loans to buy or build a Tiny House?
Tiny House Blog: We have two main questions.
Kai: Go for it.
Tiny House Blog: First: Is Tiny House Lending for real? Are people actually finding Tiny House loans through your website?
Kai: Wait, that’s a two-part question. Are you cheating?
Tiny House Blog: (laughs)
Kai: Yes, Tiny House Lending is real. We are connected to a nationwide lender that can offer bank-backed personal loans.
Tiny House Blog: Ok let’s stay with this part for a minute. Tell me more about the kinds of loans, terms, the application process, etc.
Kai: Potential borrowers must have good to excellent credit to apply. Loans are available up to $100k, for terms as long as 84 months. RVIA certified park model RVs loans begin as low as 2.99% APR. Other Tiny House loans (for non-RVIA certified pre-built models, or for people who want to buy materials and build themselves) can be as low as 5.99%. Our lenders serve residents of all 50 U.S. states.
Tiny House Blog: So ideally, someone could listen to our interview or read the transcript then go to Tiny House Lending and apply. How long does the application take, and how long would they have to wait to find out if they are approved?
Kai: One important clarification: Tiny House Lending gathers just enough information to help match borrowers to a qualified lender. Right now we have one main partner but the site is built to scale quickly as we add more. We find a match, then the borrower clicks over to the lender’s website to apply. Applications take about 10 minutes to complete and decisions can be processed in as little as a few hours!
Tiny House Blog: So really, someone who has been waiting on financing could now be only a few minutes away from the next step of their Tiny House dream? That’s exciting!
Kai: It’s thrilling. We’re taking a small but important step toward further legitimizing this movement.
Tiny House Blog: Ok, but here’s the second question: Should people take out a Tiny House loan? I sense that many of our readers are going to have a hard time swallowing that idea.
Kai: Yeah, it’s the “debt-slavery” conversation. Here’s the deal: personally, I think that cash is the way to go if you can afford to self-finance. But I’ve been conducting market research for a year and I can say with 100% certainty that there are thousands of Tiny House Enthusiasts out there (maybe tens or hundreds of thousands) who are stuck in the rent cycle. They give cash to their landlord every month and can’t save enough to break free. In those situations especially, and even accounting for the interest they could pay on loans, there are many scenarios in which they can get further ahead by financing a Tiny House. Here’s a loose example: $900/month in rent for 3 years equals $32,400. That’s enough for a nice Tiny House but it’s entirely wasted on rent. Take out a loan and yes, you’d pay interest (the percentage rate matters, for sure). But don’t lose sight of the fact that you’d pay back the loan, own an asset and live rent-free forever!
Tiny House Blog: Ok this is sounding great. How should borrowers get started?
Kai: It’s simple – just visit www.tinyhouselending.com and click “Get Started.”
To see if you qualify for a Tiny House loan visit www.tinyhouselending.com.