Hello family & friends,
Sorry that we’ve been a little behind on our weekly blog posting! We are the worst… but we are still glad for your support and love through this whole journey!
Nic and I have been doing a lot of researching and studying on how to finance a large project like our tiny house, and the unfortunate truth is that it is just impossible for two people at our income level, with the amount of student loan debt we already have, to get approved for a loan of this amount with no large assets or guarantee that the bank will ever get their money back.
Of course we are good people who have every intention of using the money to build the house and faithfully pay off the loan as fast as possible, but the banking system doesn’t look only at good intentions. They like to see it on paper. The funny thing about building tiny houses is that there really isn’t a “tiny house” type of loan available. Our first stop in the search was TinyHouseLending.com. But because of our “poor college student/poor college graduate” status, the lenders on the site aren’t an option for us.
The $earch continues…
The next step we took was meeting with someone at our local bank here in Anacortes. We work with Bank of the Pacific, an awesome bank that has been nothing but good to us since we moved here. Our meeting, although not completely successful, was very educational. We learned that because of the type of project that a Tiny House is, we cannot use an RV loan or a construction loan, even though the percentage of interest is a bit lower for these. We can, however, possibly be approved for a personal loan of any amount up to $10,000, for a reasonable interest rate (compared to a credit card, for example, 9% vs 20%). After our meeting at the bank we did some thinking…
Our plan B from the beginning was to buy a camping trailer and fix it up with a personal loan. We would then pay it off quickly and live on someone’s land for a few years until the student loans are paid off, and then pursue our full tiny house plan. Not ruling this option out, we have set off to find said land, which is much more difficult than you might imagine. City zoning laws in Anacortes prohibit citizens from living in an RV on private land for extended periods of time. However, we just learned from a local friend that it is possible to take your case to the city counsel and have your dwelling approved. This is great news for us, but we still don’t have a parking spot on any land – so our search continues.
Of course we’ve considered searching for a tiny apartment until our situation changes and we can get approved for our tiny house, unfortunately there are not many small apartments in this area that are as low of a rate as we would like to find. We have until May 5th, when our lease is up, to find either a parking spot in town or a tiny apartment.
Either way, we have put this in God’s hands, believing that He has a plan for us and that the opportunity will present itself when He’s ready. This has been a big test of our faith, but we are growing and learning from the experience.
We also thought of moving in with Mom & Dad, but we’re too far away… and we’re not sure it would turn out the way we hope either. (But we still love you guys!)
Until Next time, Maria & Nic Paz
PS: If you or someone you know might have a quiet place on a piece of land that has electricity and wifi, that they would be willing to rent to us, we would love to hear from you!