Boxabl has revolutionized the tiny home industry by offering homes that can be unfolded on-site in less than two hours. Although these prefab homes cost around $50 thousand, the good news is that you can finance a Boxabl home to make it even more affordable.
With the housing crisis at its peak and many people unable to afford a traditional site-built home, a Boxabl prefabricated home can be a great solution. You can build almost any style of home with the Boxabl building system.
Made from building materials like steel, concrete, and high R-value insulation EPS foam, the Boxabl homes are built to last a lifetime.
Boxabl homes are manufactured to a higher code standard than others and built to modular approval standards.
It is also possible to fund a Boxabl house. Many loan options are available, and Boxabl has been connecting customers with several Boxabl-certified future financing partners to help customers finance their new Boxabl homes.
Let’s discuss how you can fund your Boxabl home and the types of loans you should consider in the following sections of this article.
Boxabl has made ripples in the prefab housing industry by offering an affordable house that can go up in less than two hours. These homes are shipped as units that can be arranged to create almost any style of home on-site.
A 375-square-feet unit called the Casita can cost you about $50,000. You can stack multiple units to create a design you like.
If you are considering a Boxabl house, keep in mind that the cost of the Casita does not factor in the cost of the land and the site setup.
The setup, which provides for utility hookups, permits, other fees, landscaping, and more, can add to anywhere between $5000 to $50,000, depending on the area and location of the site.
Another factor you should carefully consider is the expense of shipping. The Boxabl factory is located in North Las Vegas, NV, and all homes need to be shipped by road to their final locations from this factory only.
Consequently, the shipping expense can quickly add up if you need these homes shipped to a site at the other end of the country from Las Vegas.
According to Boxabl, you will have to pay anywhere between $3 to $10 per mile from their Las Vegas factory.
In a recent update to their terms and conditions, Boxabl no longer quotes a fixed price for their Casita units.
The company has announced that the pricing will be quoted "case-by-case basis." The increase in inflation and the long waiting list for the Boxabl Casita home due to huge demand are reasons for this policy.
As you can imagine, there can be a significant change in the unit's pricing depending on when you will get the Casita and where you want to get it shipped.
However, it is safe to assume that the 375 square-feet living space should come at roughly $50,000.
When you factor in all of these situations, Boxabl homes are still one of the most affordable prefabricated houses on the market.
If you are impressed by what the Boxabl can offer and want to get one, the good news is that you can finance the unit, too. Let’s find out how!
It is possible to get financing for your new Boxabl home. The company has partnered with several financial institutions that can help customers get a great financing deal for their new Boxabl house. You can discuss loan options available through financing partners and the next steps.
You have multiple financing options with Boxabl homes. Several companies offer easy personal loan options rather than home equity loans for Boxabl units.
If you want to go the traditional route, you can also secure a 30-year mortgage for your Boxabl house.
However, remember that your finance options will be based on factors such as your household income and credit score.
Boxabl themselves do not offer any financing for their Casita units. However, they have partnered with several financial agencies that can help you get the funding necessary for your tiny home. You can also get financing from other sources for your Boxabl home.
You need to remember that the waiting list for Boxabl homes is quite long when considering your financing options. Boxabl no longer offers a fixed price for the Casita units, so your landed cost can significantly increase from the standard $50,000 current rate.
Although Boxabl makes every effort to be transparent about the rate of the units, you should get it cleared from the company and the creditor before opting for one of the loan options.
The company started to ship its homes early this year, and the timeline is subject to change. Hence, delivery delays can occur by as many as a few months.
You should factor this in when opting for one of the loan options or financing your Boxabl home.
Apart from the cost of the Boxabl Casita itself, you might need additional finances to prepare your land and provide for other facilities. Some of the additional costs that you should expect when purchasing a Boxabl home include the following:
While Boxabl homes are perfectly legal in all 50 states and have modular approval, you might need to spend money getting all the necessary permits, building code, and other documents. Boxabl has partnered with permits.com to make it a bit easy for you to take the next steps.
Before going for a loan, you should check out how much the legal permits cost to build a Boxabl home in your city. You can do it quite easily using permit.com.
While the Boxabl homes come pre-installed with basic furniture, including a fridge and dishwasher, you will have to arrange for the power and other regular utilities during construction.
The expense of hooking up utilities to your new home can also add up and must be considered when budgeting your Boxabl home.
The good news is that these homes are extremely energy efficient thanks to the structurally laminated panels and tight building envelope. The utilities simply plug into these tiny houses.
The expenses of landscaping and additional construction are also not included in your Boxabl home. You might need to spend additional money on landscaping to make your home more livable and presentable.
One of the great things about these prefab Boxabl homes is that they can be taken off-grid if you want due to their high energy efficiency and limited thermal bridging.
In these homes, you can install solar panels on the flat roof system, water tank, and septic toilet.
Of course, these additional amenities will add to the expenses, and you will need to factor the cost of these things into your budget.
You can benefit from several financing options when purchasing your Boxabl home.
The increased demand for additional dwelling units (ADUs) with Boxabl has opened up several financing options for customers in recent years.
Here are loans and financing options for Boxabl homes that you can explore.
Unsecured loans, often called personal loans, are based on your creditworthiness. These loans are not secured by collateral property, hence the name.
One of the biggest advantages of securing these types of loans is that you are not putting your asset at risk. Besides, the application process for these loans is the easiest.
On the flip side, as these loans are riskier for the lender, they have higher interest rates, and you can borrow smaller amounts of money with these loans.
Most financial institutions can offer unsecured loans between $50,000 to $100,000, depending on your household income and credit score.
Boxabl Casita costs about $50,000, so these loans can be a good option.
This can be a great option if you consider the construction of a Boxabl home as an additional dwelling unit to your main home. Cash-out refinancing allows you to turn your existing home equity into cash.
Cash-out refinancing allows you to restructure the mortgage on your existing home. You can pay off your first mortgage and use the remaining amount for financing your Boxabl ADU.
So, with this option, you will consolidate your existing primary mortgage and the Boxabl funding into a single loan.
That said, you should remember that this is an option for those who already have build-up equity in their existing home.
Here are a few important things to consider before thinking about a cash-out refinancing option:
Construction or renovation loans can also be a good option if you use Boxabl as an add-on to your existing home. The biggest benefit of these loans is that they allow you to borrow funds based on the property's future value after the renovation project is completed.
These loans will allow you to borrow up to 125% of the current value of your home, whereas the Cash-out refinancing limits you to 80-90%.
One of the biggest problems with these loans is the long and often complicated administrative requirements.
The closing times of these loans can be quite long, leading to much frustration for the borrower. These loans might also have high-interest rates.
One of the most interesting options to fund your Boxabl ADU is an alternative way you can leverage your equity for raising funds. The core concept is quite simple.
An investor will provide you with up to $500,000 in funding that you can use to construct your Boxabl ADU in exchange for a share of any future appreciation of your property.
It can be a great option if you can find an investor to help you get your Boxabl ADU. Using this option, you don't need to go for a loan and add to your monthly interest expenses.
The arrangement between you and the investor relies on the projected property value increase and can save money.
Unfortunately, there is no one fixed solution for financing a Boxabl unit that will be perfect for everyone.
Evaluate your needs and assess your financial status, including your home equity and credit score, before settling for any options discussed above.
If you want to go the traditional route, you can fund your Boxabl home with a conventional 30-year mortgage. Although it might require a bit more paperwork, you can apply for a traditional mortgage for building a Boxabl unit.
It makes the most sense if you plan to stack multiple Casita units for your home. In most places, you can easily fund your Boxabl home with this option.
It is also a great option for someone not looking to get their monthly expenses very high. For instance, if you fund a single 375-square-foot Boxabl Casita with a 30-year mortgage, your monthly payments will be between $250-$500.
Boxabl has emerged as a shining beacon of hope for the tiny house movement that is taking the nation by storm. These small, prefabricated houses are great for people on a budget and the environment.
One of the biggest advantages of Boxabl homes is their price. You can get a beautiful tiny house with Boxabl at a significantly lower cost compared to building one traditionally.
Several finance options make Boxabl homes even more attractive. Boxabl has partnered with several financial institutions to help customers get the financial help they need while purchasing these homes.
Apart from Boxabl financing partners, you also have other options for financing your tiny home, as discussed above. Ensure that the financing option you are going for meets your needs and does not put an additional burden.
Want to be a part of the tiny house movement but don’t know where to start? At Tiny House, we have compiled all the information you need to start. From tiny houses, RVs, and trailers to Gypsy wagons, you will find a wealth of information on our website!