Any creative ideas of home financing - somewhere between tiny home and minimalist?

[Camden Towne]

Hello,

I am at the cusp of finishing a medical education program, with a significant income increase on the horizon. My wife and I will be education debt free after significant work and serendipity. That said, we are hoping to homestead in a slightly more expensive area of the country. She doesn't want to live in a tiny house as we start a family, yet we appreciate the minimalist approach and would foresee a smaller square footage of our home (with the exception of some land). What options exist for debt free (or debt reduced) living? Or are the tax benefits of a mortgage "worth it"? I'm curious to hear thoughts in both directions. 

Thanks!