Mortgages seem like an easy way to purchase a home, but there’s a list of qualifications you need to meet to get an approval. These qualifications include a good credit score, a sufficient down payment, as well as the payment of interests. If getting a mortgage is not an option for you, there are other ways to purchase a home. Here are a few ways to buy a house without a mortgage.
Cut down on your expenses
If you’re a two or more income household, consider living off the income of one while using the other’s income to pay for a house with cash. If you save all that money and purchase your dream home with cash, you can save a fortune on interest.
Downsize
Another option could be to downsize if you can. If you’re living in an expensive area, it’s a good idea to move to a more affordable location.
Get a funding
If you’re looking for an investment property, you will need a high credit score and a higher down payment. To tackle with this, you can look for funding from an investor to buy and improve the property. Once you renovate the property, you can sell it for a profit and split it with your investor.
You Might Also Like: 5 Things To Do After You Pay Off Your Mortgage
Use seller financing
If your credit score is very low or if your employment history doesn’t qualify you for a bank loan, you can try seller financing as an option. This type of financing is usually for a short termed from three to five years with a lump sum to be paid at the end of the term. How it works is that you sign a note to keep as evidence that you’ll repay the loan, get the seller’s signature on it, and you get a new home. Now, since you are the owner by law, you can sell or refinance the property. This process sounds great in theory, but the tough thing is to find a seller who is willing to invest in you and your house.
Lease
Another way to own a house without a mortgage is through a lease. You lease a house, and the payment is then split; some of it goes toward down payment and the rest goes towards paying your living expenses. However, you will need to apply for a mortgage later to buy the house.
Practice give and take
One important thing in this option is to have someone you can trust. If you can spend enough house renovation and other repair work, you might be able to find someone who will obtain the mortgage for you. But for this to work out, you need to live in the house and take care of all the repairs and renovations. Once you renovate and sell the house, you get to split the profits.
Keep yourself updated with the latest on Mortgage. Like us on Facebook and follow us on Twitter for more on Investments.
