Are you considering purchasing a tiny house? If so, it pays to do plenty of research ahead of time to be sure you’re making the right move.
Tiny homes make an excellent choice for some individuals, couples and small families. For others, this type of lifestyle would drive them bonkers.
Here are three considerations to help you decide if the tiny house lifestyle is right for you.
If you take the tiny house route, you’ll probably have to give up much of what you own.
If you don’t believe you could give up many of your possessions, a tiny house may not be the best choice for you.
Some people are uniquely cut out for this type of lifestyle and some people aren’t. And that’s okay.
Being mentally prepared for the tiny house lifestyle is only part of the equation. You'll also need to understand the financial side of things.
One of the first financial questions asked is, "How much do tiny homes really cost?"
The average cost of a tiny home is between $30,000 and $40,000.
The next commonly asked question is, "Can I get a traditional mortgage for a tiny home?"
It's currently challenging to obtain a traditional mortgage for a tiny home. There are two major reasons for this.
First, if your home is transportable, you'll be unable to obtain a traditional mortgage loan. Your home needs to have a permanent location to get that type of loan. Secondly, traditional mortgages generally have a minimum amount the loan can be for. This is often problematic for lower-priced tiny homes.
A common way around this is obtaining an unsecured personal loan. For those who already own a house, a home equity loan is another option.
Is the tiny house lifestyle the right move for you? That really depends on a combination of personal preferences and financial considerations.
If you're interested in finding out more about purchasing a tiny house, contact the home buying experts at Midland Mortgage. We'd be happy to answer any questions you may have and walk you through all of your home buying options.