Today we are announcing the partnership with Tiny House Lending, a service that matches users with lending partners to originate loans for the building or buying of a Tiny House.
As part of the partnership, we are offering modified terms to Tiny House Lending users, with an increased maximum loan amount of $35,000 and an increased maximum loan term of up to five years. Our range of interest rates is unchanged, with rates as low as 2.9% APR.
Tiny Houses are typically defined as any residential structure under 500 square feet, and supporters of the movement highlight their affordability, portability and ecological benefit. The borrowing needs of the Tiny House community do not fit the standard home or auto/RV models of traditional lenders. This has led to companies like Tiny House Lending to engage with online lenders, such as Backed.
"Because there’s no collateral, financial institutions charge far higher interest rates for Tiny Houses than you’d see for cars, RVs or conventional housing options" said Kai Rostcheck, Founder of Tiny House Lending.
Through Tiny House Lending, borrowers can tap into our patented-pending loan application process that makes it easy for anyone to gain access to a loan, and receive the special terms. For the lowest possible rate, borrowers can add a Backer, which is our reinvention of co-signing. When a friend or family member “Backs” the borrower, the risk for the co-signer is significantly reduced due to a number of advantages we provide. For example, with traditional loans, a co-signer is only told about a missed payment after it is too late. With us, there is a 15-day grace period after a missed payment, where the “Backer” is notified, which enables them to assist before any late fees occur.
“We believe that the members of the Tiny House community are inherently characterized by their responsible financial behaviors, which makes this a smart partnership for Backed and its network of investors,” said Tal Yatsiv, CEO of Backed. “We look forward to helping people realize their dreams of Tiny House ownership with smart loans that fit their lifestyle.”
Our loans are available today through the Tiny House Lending website and are currently available only to residents of Arkansas, Florida, New Jersey, New York, and West Virginia at this time.