Moving to a tiny house is not all about finances. Instead it is about reshaping your entire life. With the hundreds of feet in a tiny house, you can easily make the decision to go greener. Furthermore, you will get to learn the meaning of possession. In the end, tiny home owners spend more on experience rather than items. However, building a tiny house may take more time and money than expected. You will, therefore, have to look for sources of finance if you are to live the tiny dream. Fortunately, there are so many options of financing your tiny house to go with. All you need is to choose the best financing alternative to meet your needs. In this article, we will go through different financing alternatives for a tiny house.
1. YOUR SAVINGS
It is with no doubt that your own cash is the best finance for your house. No wonder many people are using their time and energy in saving as much money as possible. Despite taking months or years, you will reach the intended target. You should, therefore exercise patience until you get the cash that you need.
One of the main reasons of joining the tiny house movement is to be debt free. This means no loans, rents or mortgages. However, working towards this goal is not a piece of cake. Still, it is worth the wait as it will change your life for the better. To be safe, you should start by making a budget. You can then allocate the funds that you need to finance your tiny house. Remember to keep the tiny house savings far away from other personal accounts. It is through this action that you can avoid the temptation of spending it.
As you save, you will also have to come up with a good design. After the design is in place, you can buy one material at a time. It is advisable that you exercise caution when making purchases since you can make wrong decisions. Only buy what you need after which you can remove it from your list. Before you know it, you will be having every material that you need.
2. HELP FROM FAMILY & FRIENDS
Apart from cash, you can borrow loans from family and friends as it is a good way of financing your tiny house. This is where you will determine your true friends and supportive family members. Make sure you borrow money that is easily repayable if you are to live happily. Fortunately, tiny living offers the freedom to repay the loan easily. Once you move into your tiny house, you will no longer pay rent or mortgages. Instead, your sole focus will be paying back the loan.
In order to keep everyone accountable, you should sign a contract with your lender. The contract must include the interest payable if the lender is to get a good return on their investment. Additionally, you can also discuss the monthly installments payable and duration of payment. Whatever the case, make sure you also get a good deal from the agreement.
3. MANUFACTURER FINANCING
Some tiny home manufacturers have built-in financing for your tiny house which are worth considering. These products are aimed at making their tiny houses more accessible to buyers. However, the packages vary with the type of company you are relying on. Most large companies will offer this service to their clients. Just like any other funding, you must first examine the loan terms. It is only then that you can apply for a manufacture’s funding or not.
The internet has changed the way we do things. It is not surprising to find people sharing important information online. Tiny house owners have also not been left behind when it comes to using the internet. Many tiny enthusiasts can now share tips and tricks with other builders. You can use this opportunity to get in touch with local building companies as an option of financing your tiny house. Ask whether they will be willing to sponsor your build or donate some materials.
If you opt for sponsorships, make sure you come up with a good offer. Let them know exactly what they will get in return from the deal. You can even show them how companies have benefited from sponsoring tiny houses. The better you are at convincing, the higher your chances of getting a sponsor.
I CAN HELP YOU
There are times you may want to use your tiny house in projects that benefit others. When this is the case, you can opt for crowdfunding as a financing alternative. However, the rewards must be breathtaking if you are to convince people. This is because most people will only help when there is something good in return. Consider starting a GoFundMe page for your family and friends donations. You should however not count on crowdfunding to give you lots of money without working hard. Looking for additional financing alternatives will, therefore, prove beneficial.
6. RV LOANS
If your tiny home is on wheels, then you can consider getting an RV loan as it is among the best ways of financing your tiny house. There are different definitions of recreational vehicles depending on the state or country. Therefore, your tiny home must be certified by the Recreational Vehicle Industry Association. It is only then that you can be eligible for an RV Loan.
When applying for an RV loan, you should carefully examine the interest rates. Most of these RV loans may have interest rates of 4% and 7%. This is usually for a term of about 15 years. Do not take the RV loan if you find it going against your expectations. Any attempts to take the loan will only cause problems in the future.
Getting the right funding is important if you are to build your dream tiny house. Therefore, examine all the available options until you get the best. It is only then that you can start building your tiny house hassle free. Remember to pay back the loans as agreed if you are to avoid penalties.
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