{"id":1706,"date":"2021-09-24T11:00:35","date_gmt":"2021-09-24T15:00:35","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1706"},"modified":"2024-04-25T23:19:25","modified_gmt":"2024-04-26T03:19:25","slug":"buying-a-tiny-house-a-brief-guide","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/buying-a-tiny-house-a-brief-guide\/","title":{"rendered":"Buying a Tiny House: A Brief Guide"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/buying-a-tiny-house-1-1024x427.jpg\" alt=\"Image of a small house.\" class=\"wp-image-1708\" width=\"1024\" height=\"427\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/buying-a-tiny-house-1-1024x427.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/buying-a-tiny-house-1-300x125.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/buying-a-tiny-house-1-768x320.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/buying-a-tiny-house-1.jpg 1069w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Tiny houses are, as the term suggests, small homes \u2014 generally\nsmaller than modest-sized condos. The price tags are not necessarily tiny, although\nthey can be. Here, we take a look at the logistics of living in a tiny house.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Allure of the Tiny Home<\/strong><\/h2>\n\n\n\n<p>Tiny houses draw homeowners who seek streamlined costs, energy\nefficiency, reduced environmental impact, and a love for the minimalist\nlifestyle. They also attract the adventurous. Most people interested in tiny\nhomes would ideally want one smaller than 400 square feet, allowing for mobility.<\/p>\n\n\n\n<p>In November 2020, the real estate exchange\u00a0company <a href=\"https:\/\/www.ipx1031.com\/america-ideal-tiny-home-tiny-office\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">IPX1031<\/a> sent a survey out to more than 2,000 people across the United States, asking whether they could see themselves in tiny homes. The respondents\u2019 median age was 38, and nearly half of those surveyed were renters. More than half of the group expressed interest. And among respondents thinking of buying their first homes, an impressive 86% say they would look at tiny homes. <\/p>\n\n\n\n<p>Note the time of the survey: late 2020. Since the advent of Covid-19,\nthe attractive elements to a tiny home are attracting special attention. A mini\nhouse could serve as an escape destination \u2014 a break from the close quarters of\nurban or condo living. <\/p>\n\n\n\n<p>But whatever the reason for choosing a super-small home, the\nbuyer has to decide on the must-have features when choosing the type of home to\nbuy. Popular elements include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A heating and air conditioning system.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>A dedicated kitchen and bedroom area.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Laundry hookups.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Scenic surroundings.<\/li><\/ul>\n\n\n\n<p>For some owners, the tiny home mystique has its own appeal. In\nother words, tiny home culture is on the rise. Some communities let tiny\nhomeowners rent land and enjoy a co-op lifestyle. And now, with so many people\nworking remotely, tiny houses set up as accessory offices are gaining traction,\ntoo. Some people choose tiny houses as investments, to use either as long-term rental\nproperties or short-term getaways.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Affordable Housing Solution?<\/strong><\/h2>\n\n\n\n<p>The Community Action Partnership (CAP) of St. Joseph,\nMissouri aims to remake a vacant lot into a cluster of six to 20 tiny homes,\neach costing $20,000 to build. Local zoning supports the goal. CAP would cover\nthe costs of construction. They would then offer the homes to veterans without\nhomes who are actively seeking help, and prepared to pay rent.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Similarly, Allentown community activists hope to create a starter\nvillage of&nbsp;25 tiny homes&nbsp;on city property in Lehigh County. Shelter,\nthey note, is a prerequisite for anyone trying to get back on solid financial\nfooting. <\/p>\n\n\n\n<p>Efforts like these could uplift people and places where they\nhappen, yet NIMBYism does tend to pose challenges. &#8220;My concern,\u201d said a\nlocal resident at a city council meeting, \u201cis will I be able to go in my\nbackyard at night?\u201d The fearful query was echoed by several others in\nattendance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tiny Home Logistics<\/strong><\/h2>\n\n\n\n<p>Planning and logistics all depend on whether the tiny home\nis fixed on a foundation, or moveable. Turnkey tiny homes on foundations are\navailable. For the handy among us, so are tiny home kits. <\/p>\n\n\n\n<p>The big considerations with stationary homes are city zoning\nand building codes, and procedures for hooking up utilities. These are\ntownship-specific, so local research has to be done before deciding where to live.\nAs a general rule, any residence on a foundation is responsible for paying property\ntaxes.<\/p>\n\n\n\n<p>Whether the buyer is using a kit or having the house built, it\u2019s\nhelpful to consult a tiny home builder in the chosen location, and get a\nwalk-though of the processes and regulations. Tiny home builders are thriving <a href=\"https:\/\/thetinylife.com\/tiny-house-builders-the-complete-tiny-house-builder-directory\/\" target=\"_blank\" rel=\"noreferrer noopener\">across the country<\/a>. <\/p>\n\n\n\n<p><strong><em>Pro tip:<\/em><\/strong> <a href=\"https:\/\/codes.iccsafe.org\/content\/IRC2018\/appendix-q-tiny-houses\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Appendix Q:\u00a0Tiny\u00a0Houses<\/a> was added into the\u00a0International Residential Code\u00a0(IRC) in 2018 to supply regulation for aspects like ceiling heights, loft dimensions, lighting and windows, and so forth. This makes permission to establish tiny homes more straightforward, and facilitates the lender\u2019s work as well. <\/p>\n\n\n\n<p>Moveable tiny homes are deemed personal property, so they won&#8217;t\nincur property taxes. But the land might. And there can be state motor vehicle department\ncharges, correlating with the VIN on the&nbsp;title. A prospective buyer needs\nto know the seller possesses a valid and clear&nbsp;title, without liens that\nneed to be paid off. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financing the Fixed-in-Place Tiny Home <\/strong><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"615\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/financing-the-fixed-in-place-tiny-home.jpg\" alt=\"Image of a very nice tiny home with a patio and landscaping.\" class=\"wp-image-1709\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/financing-the-fixed-in-place-tiny-home.jpg 410w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/financing-the-fixed-in-place-tiny-home-200x300.jpg 200w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/figure><\/div>\n\n\n\n<p>While the typical home purchase now runs considerably more than 200K, the price of most tiny homes is in the five figures. Note that home loans can start at $50,000, so not all tiny homes will fit into the mortgage standards. And as noted by <em><a href=\"https:\/\/themortgagereports.com\/49200\/can-you-finance-a-tiny-home\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">TheMortgageReports.com<\/a><\/em>, the FHA won\u2019t finance anything under 400 square feet. For really tiny and inexpensive tiny homes, this suggests that paying cash is best. <\/p>\n\n\n\n<p>Tiny homes on foundations can run well over $50,000, though,\nmaking government backed or conventional (Freddie Mac or Fannie Mae) loans\npossible. Interest rates for mortgages beat rates for personal loans, so a\nmortgage makes sense if the property counts as real estate. This means homeownership\nis reflected in property taxes. Also, any piece of real estate has a title and\nplat recorded. <\/p>\n\n\n\n<p>Additionally, appraisers need to be able to find nearby\nhomes of comparable style and value so they can produce accurate, local tiny\nhome valuations for a mortgage lender. This is a good reason to work with\nestablished tiny home builders in places where other tiny homes built on\npermanent foundations have recently sold.<\/p>\n\n\n\n<p>Some locations classify a stationary tiny home as an Accessory Dwelling Unit (commonly known as an ADU or in-law cottage). In these areas, tiny homes are acceptable<em> if<\/em> a primary home already stands on the real estate. If you\u2019re a homeowner who can build a tiny home or office on your property, you may qualify for the federal government\u2019s <a href=\"https:\/\/www.hud.gov\/program_offices\/housing\/sfh\/title\/title-i\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Title 1 Property Improvement Loan Insurance<\/a>. This tool backs loans up to $25,000 for site improvements on real estate. <\/p>\n\n\n\n<p>In contrast to the ADU-only scenario, some local zoning\nordinances limit high-density housing, putting the kibosh on homeowners\u2019 plans\nto build ADUs on their own land. And check the main property\u2019s deed. Does it\nrule out new structures on the property? Compared to zoning restrictions, <a href=\"https:\/\/www.deeds.com\/articles\/deed-restrictions-how-they-impact-homeowners-and-communities\/\">deed\nrestrictions are extremely sticky and hard to challenge<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financing a Tiny Home on Wheels<\/strong><\/h2>\n\n\n\n<p>What about a tiny home on wheels? This kind of home can\u2019t\nget a mortgage. If certified as a&nbsp;<a href=\"http:\/\/www.rvia.org\/?ESID=facts\" target=\"_blank\" rel=\"noreferrer noopener\">recreational vehicle<\/a>, a home must adhere to the National\nHighway Traffic Safety Administration (NHTSA) standards and manufacturing\ncodes.<\/p>\n\n\n\n<p>Search for \u201cRVIA-certified homes\u201d to study the safety\nstandards. Certification is also important if you\u2019re making the home your\nprimary residence and are seeking financing to do it. <\/p>\n\n\n\n<p>\u261b <strong><em>Moveable homes may be designated as recreational\nvehicles or permanent dwellings. Read about titling, buying land, and financing\nthese homes from Deeds.com at <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/types-titles-taxes-what-to-know-before-you-buy-a-mobile-home\/\"><em>Types, Titles &amp; Taxes: What to Know Before You Buy\na Mobile Home<\/em><\/a><strong><em>.<\/em><\/strong><\/p>\n\n\n\n<p>To help buyers uncover the states and towns with\n\u201ctiny-friendly ordinances,\u201d the <a href=\"https:\/\/americantinyhouseassociation.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">American Tiny\nHome Association<\/a> offers materials to help them become knowledgeable,\ninstead of trying to reinvent the wheel!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Words to the Wise Tiny Home Buyers<\/strong><\/h2>\n\n\n\n<p>You\u2019re here because you know this. But we\u2019ll say it anyway:\nresearch is key. A buyer must know about the title aspects of tiny home buying,\nand must find out about local and state registration, permitting, and fees. <\/p>\n\n\n\n<p>Speak with your insurer before making the shift, too.\nInsurance needs can vary, depending on the type of tiny home it covers. Plus,\nif and when you move a tiny house, separate coverage or a special endorsement is\nlikely needed. &nbsp;<\/p>\n\n\n\n<p>And we\u2019d be remiss if we didn\u2019t mention the value of getting\nlegal help. Buying a tiny home can be fast and easy \u2014 sometimes too easy. To\navert problems later, a tiny home purchase should be treated as a homebuying\nprocess. This means having the tiny home, if it\u2019s already built, inspected.\nIt\u2019s also wise to forge a written contract with the seller, covering the\ncondition of the tiny home to the point it is received on its new lot, if moved\n\u2014 plus legal recourse for any breach of promises. <\/p>\n\n\n\n<p>With an open mind and open eyes, a buyer can delight in the\nlittle things, and take pride in the commitment to a minimalist lifestyle. <\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Peter Miller\u00a0for <em>The Mortgage Reports<\/em>: <a href=\"https:\/\/themortgagereports.com\/35493\/tiny-houses-begin-to-take-off-with-new-mortgage-options\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Tiny Houses Begin to Take Off With New Mortgage Options<\/a> (Feb. 7, 2018).\u00a0<\/p>\n\n\n\n<p class=\"has-small-font-size\">IPX1031: <a href=\"https:\/\/www.ipx1031.com\/america-ideal-tiny-home-tiny-office\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Insight Blog \u2014 Survey Reveals America\u2019s Ideal Tiny Home and Tiny Office<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Milgrom and Daskam: <a href=\"https:\/\/www.milgromlaw.com\/blog\/6-tips-for-purchasing-a-used-tiny-home-on-wheels\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Six Tips for Purchasing a Used Tiny Home on Wheels<\/a> (May 31, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Danielle Sachse\u00a0for <em>KQTV<\/em> (Heartland Media, LLC, St. Joseph, MO): <a href=\"https:\/\/www.kq2.com\/content\/news\/Neighbors-express-concerns-regarding-tiny-homes-project-in-St-Joseph.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Neighbors Express Concerns Regarding \u201cTiny Hones\u201d Project in St. Joseph<\/a> (updated: Oct. 21, 2020).\u00a0 <\/p>\n\n\n\n<p class=\"has-small-font-size\">Megan Frank for <em>National Public Radio<\/em> (via WLVR in Lehigh County, PA): <a href=\"https:\/\/www.wlvr.org\/2021\/02\/tiny-homes-could-help-combat-homelessness-in-lehigh-county\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Tiny Homes Could Help Combat Homelessness in Lehigh County<\/a> (Feb. 23, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Linda Bell for <em>NerdWallet.com<\/em>: <a href=\"https:\/\/www.nerdwallet.com\/article\/mortgages\/buy-tiny-house\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">What to Know About Buying a Tiny House<\/a> (Oct. 15, 2020).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Quicken Loans\u00ae: <a href=\"https:\/\/www.quickenloans.com\/learn\/tiny-home-financing\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Tiny-Home Financing: Is It Hard to Get a Loan?<\/a> (Nov. 9, 2020).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Chris Moon\u00a0for <em>ValuePenguin.com<\/em> by Lending Tree:\u00a0<a href=\"https:\/\/www.valuepenguin.com\/tiny-home-insurance\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Can You Get Tiny Home Insurance<\/a>? (updated\u00a0Apr. 12, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.pexels.com\/photo\/brown-and-red-birdhouse-2640604\/\" target=\"_blank\">David Gonzales<\/a> and <a href=\"https:\/\/www.pexels.com\/photo\/wood-nature-building-house-8755444\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Roberto Nickson<\/a>, via Pexels.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tiny houses are, as the term suggests, small homes \u2014 generally smaller than modest-sized condos. The price tags are not necessarily tiny, although they can be. Here, we take a look at the logistics of living in a tiny house.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-1706","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Buying a Tiny House: A Brief Guide - Deeds.com<\/title>\n<meta name=\"description\" content=\"Tiny houses are, as the term suggests, small homes \u2014 generally smaller than modest-sized condos. The price tags are not necessarily tiny, although they can be. 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