5 WAYS TO FUND A TINY HOUSE BUILD
Mariah Hoffman
Photo cred: Stacy Keck
5 WAYS TO FUND A TINY HOUSE BUILD
I get a lot of questions about costs associated with my tiny house build and how to plan financially. Although I am NOT a financial advisor (you should always seek legal counsel when it comes to large financial decisions), I can share with you my perspective on options for funding a DIY tiny house project. If you are like me, you might have to implement a combination of the options below to see your project through.
1. PAYCHECK-TO-PAYCHECK
Although this option may not be the quickest way to see a tiny house project through, for many folks (myself included) this may be the only option. If you are embarking on your own DIY tiny house build, it still a good idea to conduct a feasibility and cost study to project roughly the total costs of your ideal tiny house design. That way you at least have a better sense of what you are getting yourself into.
2. CROWDFUNDING
Ok, this one is tricky. I’ll just say that this option of funding can serve a great purpose if you have or are experiencing serious hardship and are looking for ways to kickstart your project funding. Just know that before you use a platform like GoFundme etc, those platforms do take a percentage of the donations. Also, using a platform like this relies on your ability to share with your own network. So if you don’t have a following on Facebook, Instagram or at least through your email network, it can be tricky sharing your message with the public. If you do decide to use a crowdfunding platform, think about incentivizing donations or at least sending ‘Thank-You’s’ to those who contribute. A platform like Gofundme is better suited for an individual DIY’er sharing their story, vs something like Kickstarter which is more suited for launching a specific business idea with an expected return for the customer. I’m curious if others have seen success with crowdfunding a tiny house project?
3. SAVINGS
Not to state the obvious, but you can also decide to use personal savings if that’s a route that’s available to you. For those in the position of having savings, I would consider saving enough to complete the whole build or at least get enough to get the shell built and water-tight. Otherwise having to start and stop in between major construction phases can potentially stall the project.
4. FINANCING
If you are looking buy or build a custom tiny home through a licensed contractor, financing might be an option available to you. When I first started my tiny house build in 2015, there were barely any options available for financing, and contractors were just starting to build tiny home for sale. Now there are a variety of builders, some that even have their own exclusive lending options. I can’t speak from personal experience on this, but I recommend reading testimonials and/ or doing your due diligence before using a new lender.
5. PERSONAL LOAN
If you’re like me, you might just need a boost to get tarted. I used a small personal loan from a local credit union to be able to purchase my trailer and kickstart my project. Again, be mindful of interest rates with loans always and be sure that you can pay it back. In my case, I was able to pay off this loan in a couple years and I had the cash on hand to negotiate to snag my perfect trailer when the opportunity arose.
So how much does a tiny house cost? This is not a sexy answer, but the reality is IT ALL DEPENDS. Custom build vs pre-built, DIY vs hiring a builder, on-wheels vs on a foundation etc. All of these factors impact the project costs.
Explore More:
If you want to explore the feasibility and costs of your dream tiny house project, take a look at this FEASIBILITY TOOLKIT to help you work through the details!
Read my full Budget Breakdown article on my specific tiny house costs.
Do you have other options for funding not listed above that you would like to share? I’d love to hear it!