Realtors estimate there are currently over 10,000 tiny homes here in the good old U.S.A. This housing trend seems to show no sign of slowing down anytime soon. A key consideration for many is the possible cost savings their downsized living in a tiny home, either portable or stationary on a land plot, will produce.

That said, it is important to understand the typical costs associated with tiny houses and living a more frugal lifestyle before finalizing any future housing plans.

Are Mortgages Available for Tiny Homes?

Mortgages are usually available for traditional house purchases for people who meet the income and credit criteria. These mortgages usually do not begin until roughly $50,000 worth of a home and/or property value.






Banks are often willing to lend homeowners money because if the agreed upon mortgage payments are not made, the bank can recoup their money by taking possession of the house that they have equity in and selling it for a profit.

Ways to Finance a Tiny Home Purchase

Although it is unlikely that a bank will lend someone money in order to purchase a micro or tiny home, there are other financing possibilities that prospective tiny home buyers should investigate.

Financing options include:

  • Possibly using current home/property as collateral
  • Taking out personal loans through online companies or through various lenders willing to take chances on riskier loans
  • Tiny home builders often offer good finance options
  • Saving up the money beforehand
  • RV financial lenders often lend money for tiny homes too


Is It Necessary to Pay All Cash for a Tiny Home Purchase?

Although not always necessary, many financial experts claim that it is usually cheaper if individuals save their money and pay off the price with cash. This leaves out those higher cost interest fees that other finance methods often require including credit card purchases.


What Is the Price Range for Tiny Homes?

Prices for tiny homes do vary depending on size, added features and whether it is pre-built, custom designed, bought new or sold as a used model. There are some DIY tiny home kits that cost $10,000 to $12,000 for the basic size and model. Some tiny homes will cost upwards of $150,000 and can be much more.

Costs of Land for a Permanent Setting for Your Tiny Home Varies

Those wanting to purchase a piece of land in order to have a permanent setting to rest their tiny home will find that available land costs will vary significantly depending on the location and other factors. Some states are friendlier to tiny home communities, and others will have few options in the way of affordable land.

Additional Expenses Related to Tiny Home Living

Look out for hidden additional expenses such as the costs of installing utility hook up lines, costs of materials if building, price of land if wanted, storage costs for belongings, various rental or property tax fees, zoning cost adjustments and lower resale property value than traditional housing should you want to sell later on.

Add in homeowner's insurance, costs of purchasing smaller appliances and rental fees if staying at campsites or RV park and camp locations.

After accounting for these expenses, a tiny home can be an idyllic housing solution for some but not others as there are more to costs that need to be factored into your purchasing decision. Do your research and make a sound, thoughful decision.