There Are Ways To Buy A Home Without A Mortgage

Although a mortgage is a common way to purchase a home…it isn’t the only way to purchase a house. If you think outside the box, you can possibly pull off a home purchase without a costly loan. Below are 4 novel ideas.

Written by Mikey Rox

1. Live Off One Income

Some people like the idea of paying cash for a house, but don’t think it’s a reality. If you’re a two-income household, one method for getting a home without a mortgage involves living off a single income for a few years.

If you and your partner work and earn a decent salary — and live in an affordable area — you might be able to save enough for a cash purchase by keeping your life as simple as possible and subsisting off one income. This approach allows you to save 100% of the other person’s take-home salary…If you both earn $30,000 a year, rather than maintain a lifestyle requiring $60,000 a year, live frugally and save the other half of your combined income. In six years, you’ll have approximately $180,000 cash for a home purchase.

Of course, living simpler is much easier said than done. To make it work, consider renting out a room in your house or apartment to help cover expenses, or you can rent a room from family or friends. Other options include skipping vacations, spending less on entertainment, and sharing a car. These are sacrifices that pay off in due time.

2. Sell Your Home and Purchase Another One

If you’re thinking about downsizing and you have plenty of equity in your current home, another option is selling your home, taking the profit, and moving to a location with a lower cost of living.

This works if you’re currently living in an expensive area but thinking of moving to a location where you can get more house for your money. Let’s say you sell your current home and walk away with a profit of $150,000. This could be exactly what you need to pay cash for a new property in a different part of the country.