Interested in tiny homes? You’re far from alone!
Fueled by growing demand from millennials under the age of 35, there are an estimated 10,000 tiny homes in the United States.
Tiny homes range from 100 to 400 square feet (the typical American home is around 2,600 square feet), and provide a combination of lower debt, smaller utility bills and a reduced environmental footprint. While interest in tiny homes is rising fast, financing them tends to be different from traditional mortgages.
Tiny homes are often financed through RV loans and personal loans
Because of tiny homes’ lower costs (most are under $100,000), and the fact that many are built on wheels rather than permanent foundations, getting a loan to create one can be challenging.
Most traditional mortgage lenders have a minimum mortgage amount, and require the home to be built on a permanent foundation. In contrast, most tiny homes cost under $100,000, and many are built on wheels.
Because of this, tiny homes are often financed:
- directly through a builder
- through a personal loan
- through RV loans
If you’re interested in tiny homes, you should take time to research your options. There are a range of articles that provide helpful tips on finding builders, certifications and other important information.
Deciding where to put your tiny home is important
Different states also have different regulations on where you can put tiny homes. The American Tiny Home Association provides information on individual state regulations on where tiny homes are allowed.
Tiny homes are most often placed and parked on:
- land you purchase
- a friend’s or relative’s property
- public land (where permitted)
- a rented RV spot
Tiny homes are an exciting opportunity for certain individuals and families
While tiny homes aren’t for everyone, there are a rapidly growing number of styles and options available. Because the tiny home market is relatively new, growing quickly and has different regulations throughout states, take your time researching options and goals before entering this market.