The living cost in traditional houses is witnessing tectonic shifts in 2023 and seems to continue in the coming years. This has forced people to think of alternate housing solutions in the U.S. and tiny homes have been taken over by storm. What makes this type of house all the more demanding is that it costs less than traditional houses without compromising on the necessary amenities. As per recent data, compared to a conventional home, which averaged around $348,079 in 2022, you can get tiny homes at only a fraction of this cost.
If you are frustrated and overwhelmed with the humongous cost of home ownership, downsizing and purchasing a tiny house from a trusted tiny home builder might be the right way to go for you. Whether you build your own tiny house or procure a pre-built one, this type of smaller house would mean you have to shell out less for its maintenance and pay for it. However, that’s not the end. There are numerous financial considerations that you should take into account, and that is exactly what we will be discussing here. So, let’s start.
Tiny houses aren’t cheap, but they are certainly more affordable than traditional housing
People are often under the misconception that tiny houses will be surprisingly cheap. But that’s certainly not the case. Although these are small living spaces, some bucks must be shelled out for their construction, especially if you want a tiny house with all the modern bells and whistles. However, tiny houses are much more affordable when compared to the astronomical cost involved with traditional houses.
Studies performed by Fixr show that the average cost of setting up a tiny house in the US can vary anywhere starting from $40,000 to $80,000. The price factor greatly depends on factors like the location and size of the property. Fixr discovered that the cost to build a 200-square-foot tiny house on a foundation would be around $60,000. On the flip side, pre-built tiny homes, which are even smaller, would cost you only around $25,000. Now, this is far more affordable when compared to traditional housing.
Obtaining a tiny home loan can be daunting: The biggest myth
Are you considering a traditional mortgage to buy or build a tiny house? Well, it’s not as easy as it seems. Studies performed by Nerdwallet show that you must take a minimum loan of $50,000 for a residential mortgage. So, it would be challenging to secure a traditional loan for tiny houses, as tiny homes are considerably more affordable than a traditional house. Not just that, some lenders do not provide loans for mobile tiny homes. They rather prefer providing loans only for tiny houses on foundations.
Well, fret not. Established tiny home builders listed here at TinyHouseMe can help you secure financing. Some builders have connections with lenders, and some even offer in-house lending, paving the financial path to buying a tiny house. TinyHouseMe can also offer you helpful advice to secure tiny home loans for the project.
Purchasing a new tiny house
As aforementioned, the price of tiny houses depends on several factors like amenities, size, finishes, and land requirements of the home. We suggest you connect with any of our listed tiny home builders and have a word with them to select the tiny home that best fits your requirements.
● Off-the-shelf builds: The cost of a full-built tiny house will certainly be more than those available in pieces and has to be set up DIY. Besides the base price, you must consider some ad-on features like extra lofts, extended porches, and other customization options.
Purchasing a full-built tiny home means you don’t have to add anything
The tiny house will have a living room, a bathroom, a kitchen, a sleeping space, and everything necessary for a comfortable stay. If you want to earn money quickly by renting tiny houses or are not skilled enough in the construction area, then off-the-shelf pre-built tiny homes are the thing for you.
● DIY: Some tiny house builders listed at TinyHouseMe offer DIY blueprints or packages.
If you procure blueprints, you must buy all the lumber and other materials paramount for tiny house construction. Now, you might face a problem here if there is a shortage of items.
You can also opt for a package from any of our listed tiny home builders which encompasses everything from blueprints to building structure materials, and you are only required to set up the home yourself. Going this way can help you save time in the long run when compared to the time that would have been wasted on acquiring individual materials.
Land
Tiny houses are permitted in each and every state of the US, but there are strict rules and regulations. So, learning about a particular area’s restrictions and zoning laws where you want to set up your home becomes extremely important.
You should also ensure that the land you purchase has proper access to power, water, sewer, or septic. Yes, you can opt for off-grid living in a tiny house, but that would call for additional costs of solar, generator, water tanks, etc.
You can also rent a piece of land. There are mobile home parks and tiny house communities spread across different parts of the states, which you must always look out for, as these are great places for renting a piece of land. These places have power, sewer, and water systems, so you need not have to shell out money for these things. We have covered this topic on our blog section, and by connecting with a local tiny home builder, you can get a better idea on this subject.
To get further information about the zoning rules, laws, and restrictions in your preferred location, visit the official website of the American Tiny House Association.
Final Take:
The aforementioned aspects are worth considering when you plan to purchase a tiny house. The trusted tiny home builders listed at TinyHouseMe can provide expert advice on financing your tiny house project. Get in touch with the builders faster via our platform and enjoy priority service from them.
