Does this include land and setup?

No. It’s P&I on the tiny home purchase only. Include land, utilities, delivery, foundation, and permits separately in your budget.

Can I use a conventional mortgage?

Some tiny homes don’t qualify for standard mortgages; many use RV/personal loans with different rates/terms. Adjust inputs to match your financing offer.

Should I include taxes and insurance?

This tool isolates P&I. For a full housing budget, add property taxes, insurance, and utilities to ensure total housing costs fit your income.

Can I finance a tiny home like a regular house?

Not always. Some lenders treat tiny homes as personal/RV property with different rates/terms. Adjust inputs to match your actual financing offer.

finance calculator

Tiny Home Affordability

Check if a tiny home fits your housing budget based on income, target DTI, down payment, rate, and term.

Results

Estimated monthly payment: $711
Max housing payment (DTI): $2,460
Down payment: $30,000
Loan amount: $120,000
Within housing budget: 1

How to use this calculator

Enter the tiny home cost, down payment percent, rate, term, and your household income.
Set a maximum housing DTI% (e.g., 28–36%) to define your budget.
Review the estimated P&I payment and compare it to your max housing payment.
Adjust down payment or term/rate assumptions to see what it takes to fit your target DTI.

Inputs explained

Tiny home cost: All-in cost of the unit. Exclude land/site prep here; model separately if needed.
Down payment %: Percent of purchase paid upfront; remaining balance is financed.
Interest rate (APR %): Rate on your loan; tiny home financing may differ from conventional mortgages.
Term (years): Loan term; shorter terms raise monthly payments but lower total interest.
Household income: Gross monthly or annual income used to compute DTI.
Max housing DTI %: Target share of income allocated to housing (P&I). Does not include taxes/insurance here.

How it works

Max housing payment = monthly income × housing DTI%.

Loan amount = home cost − down payment; payment uses standard amortization at the entered rate/term.

Qualifies if payment <= max housing payment.

Formula

Down payment = home cost × (down payment %). Loan amount = home cost − down payment. Max housing payment = monthly income × (housing DTI %). Payment uses standard amortization with rate/term (P&I only). Qualifies = payment <= max housing payment.

When to use it

Testing affordability of a tiny home vs a traditional home at your target DTI.
Seeing how a larger down payment or longer term affects monthly payment fit.
Checking budget impact of different rates or rate environments.
Comparing tiny home purchase to renting or RV loan options.

Tips & cautions

This model is P&I only—tiny homes can have additional costs (land, hookups, site prep, permits, insurance, transport). Add those in your own budget.
Use a conservative housing DTI to leave room for taxes, insurance, and maintenance.
If financing via a personal/RV loan, rate/term may differ; adjust inputs accordingly.
Check zoning/placement rules; if land is needed, include those costs separately in your affordability plan.
If you plan to Airbnb or rent it, verify zoning/permits and model vacancy—this calculator assumes pure housing use.
Include transport, foundation, utility hookup, and insurance quotes; they can materially change affordability.
If utilities or parking/land rent are variable, budget a cushion so the P&I savings of a tiny home are not offset by other housing costs.
Confirm whether the structure is insurable in your state; specialty policies can cost more than expected.
If you expect to move the unit later, account for teardown/transport/reinstall costs in your long-term housing budget.
P&I only; does not include taxes, insurance, utilities, land, delivery, or site prep.
No site prep/land costs included; add them separately to your budget.
Does not handle RV/personal loan nuances (shorter terms, higher rates) beyond your inputs.
Does not consider resale value, depreciation, or financing availability for specific tiny home types.
Does not model rental income, vacancy, or STR regulations if used as an investment.
No tax considerations (property tax vs personal property); add those separately if applicable.
Does not include park fees, HOA dues, or local permit costs; add to your total housing budget.
Does not verify zoning/placement eligibility; ensure you can legally site the home.
Does not model insurance underwriting limits for certain tiny home types; confirm insurability and cost.
Does not include moving costs if relocating the tiny home; plan for future mobility expenses separately.

Worked examples

Within budget at 30% housing DTI

Home cost: $150,000. Down payment: 20%. Rate: 3.75%. Term: 20 years. Income: $82,000. Max housing DTI: 36%.
Down payment = $30,000; loan = $120,000. Monthly P&I ≈ fits under $2,460 max housing payment.
Qualifies: yes (P&I within target).

Tight budget—consider bigger down payment

Home cost: $180,000. Down: 10%. Rate: 6%. Term: 15 years. Income: $70,000. DTI: 30%.
Down payment = $18,000; loan = $162,000. Monthly P&I may exceed 30% target.
Increase down payment to 20% or extend term to bring payment under max housing payment.

Personal loan scenario with higher rate

Home cost: $120,000. Down: 15%. Rate: 9% (personal/RV loan). Term: 10 years. Income: $90,000. DTI: 30%.
Higher rate and shorter term raise P&I; check if the payment fits or if you need more down payment.

Adjusting DTI for other housing costs

Home cost: $160,000. Down: 25%. Rate: 7%. Term: 15 years. Income: $100,000. DTI target lowered to 25% to leave room for taxes/insurance.
Lower DTI target reduces max P&I; ensure the new payment fits after adding estimated taxes/insurance/lot rent.

Adding land/lot rent considerations

Home cost: $130,000. Down: 20%. Rate: 6.5%. Term: 15 years. Income: $85,000. Housing DTI: 30%.
Monthly P&I fits DTI, but lot rent of $600 and estimated taxes/insurance of $200 push total housing above target.
Conclusion: either lower the DTI target for P&I or find lower lot rent to keep total housing affordable.

Deep dive

Use this tiny home affordability calculator to see if a tiny house payment fits your housing DTI target.

Enter home cost, down payment, rate, term, income, and target DTI to check whether the monthly P&I works for your budget.

Adjust down payment or term to hit your housing payment goal before committing to a tiny home purchase.

Remember to add land, utilities, delivery, and insurance in your own budget—this tool focuses on loan P&I only.

If financing via a personal/RV loan, plug in the higher rate/shorter term to see the true payment impact before buying.

Test different DTIs (e.g., 28–36%) to see how conservative you need to be to leave room for taxes, insurance, and utilities.

If you plan to place the tiny home on rented land or in a park, include lot rent and utilities in your own budget to avoid surprises.

Rerun scenarios with updated rates/terms as financing quotes change; small rate moves can shift affordability for short-term loans.

Check zoning/placement rules and insurance availability; total housing cost includes more than the loan payment.

If you may relocate later, factor in the costs of transport and setup at the new site; this model isolates the financing piece only.

Use a conservative P&I target so unmodeled costs (permits, hookups, furnishings) don’t break your budget later.

FAQs

Does this include land and setup?: No. It’s P&I on the tiny home purchase only. Include land, utilities, delivery, foundation, and permits separately in your budget.
Can I use a conventional mortgage?: Some tiny homes don’t qualify for standard mortgages; many use RV/personal loans with different rates/terms. Adjust inputs to match your financing offer.
Should I include taxes and insurance?: This tool isolates P&I. For a full housing budget, add property taxes, insurance, and utilities to ensure total housing costs fit your income.
Can I finance a tiny home like a regular house?: Not always. Some lenders treat tiny homes as personal/RV property with different rates/terms. Adjust inputs to match your actual financing offer.

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