Financing Guide · Aura Tiny Homes
How to Finance
a Tiny Home in Texas.
From FHA loans to HELOCs — every financing path explained, with real rates and requirements.
Tiny home financing is more straightforward than you think.
The biggest misconception about tiny homes is that they're hard to finance. For site-built homes on a permanent foundation — like every Aura build — the full range of conventional mortgage products is available. FHA, VA, USDA, construction loans, and HELOCs all apply.
The financing path that's right for you depends on three things: whether you already own land, what you plan to use the home for, and your credit profile. This guide breaks down every option with honest numbers so you can make the right call.
Loan Comparison
Six financing paths — side by side.
Construction-to-Permanent Loan
Most CommonRate
6.5–8.5% APR
Down
10–20%
Term
30 years
Best for: Site-built new construction on owned land
Funds the build in draws, converts to a standard mortgage at completion. Requires land ownership or simultaneous purchase. Aura provides full lender documentation packages.
FHA Title II Loan
Low Down PaymentRate
6.0–7.5% APR
Down
3.5%
Term
30 years
Best for: Permanent foundation homes, 400 sq ft minimum
Government-backed loan with lower credit requirements. Requires the home to be on a permanent foundation and classified as real property. Most Aura builds qualify.
USDA Rural Development
Zero DownRate
5.5–7.0% APR
Down
0%
Term
30 years
Best for: Rural Texas properties outside city limits
No down payment required for eligible rural areas. Most McLennan County and surrounding unincorporated parcels qualify. Income limits apply. Excellent for off-grid builds.
HELOC
Existing HomeownersRate
Prime + 0–2%
Down
N/A (uses equity)
Term
10–20 year draw
Best for: Adding an ADU to your existing property
Use equity in your primary home to fund a guest house or ADU. Interest may be tax-deductible. Offset the payment with rental income from day one.
Chattel / Personal Property Loan
Flexible CreditRate
7–12% APR
Down
5–10%
Term
15–25 years
Best for: Land-lease communities, faster closing
Treats the home as personal property. Higher rate but more flexible qualification. Good option if you're placing a home in a tiny home park or leased lot community.
VA Loan
Veterans OnlyRate
5.5–7.0% APR
Down
0%
Term
30 years
Best for: Eligible veterans with permanent foundation home
No down payment, no PMI, competitive rates. Requires a Certificate of Eligibility. Home must be on a permanent foundation and classified as real property.
FAQ
Financing questions, answered directly.
Talk to Aura
Not sure which financing path fits your situation?
Our team has helped dozens of Texas buyers navigate tiny home financing. We'll walk through your land situation, credit profile, and goals — and point you toward the right lender and loan type. No commitment required.