The most common method of purchasing a home is through a mortgage, but it’s limited to people who qualify. To qualify a mortgage, you must have an acceptable credit score, employed, sufficient down payment, and meeting the bank’s income. Besides, you should remember that all mortgages will charge interests and will increase the cost of debt in the long run.
The best thing is that its not only the option of purchasing a home. You need to think outside the box and therefore own home without having a costly loan. Here, you will find five ways you can own a home without depending on mortgage:
Selling Your Home
There is an option where you can sell the house you live and buy another that has a low cost of living, says PropertyManagementOrlandoFlorida.com. You will, therefore, keep the profit. However, you’ll need to already own a house, of course! Then it will work correctly, mostly for people living in expensive areas. You will then downsize with the plenty of equity that you currently have.
For example, if you sell your home and make a profit of $200,000, that amount is worth paying cash for a good home in another location.
Renting To Own a Home
For people living in the US and probably heading to retirement, this method of renting to own a house is the best. It is an idea that will also work for people without cash to purchase a full home. Besides, you can even live in a house that you want to buy and therefore a great deal.
You will get many companies that offer this great deal. If you want to rent to own Utah, you will relieve yourself of the pressure associated with paying rent. It is the best method where you will be paying rent for your future home. It is a service that is available in various states.
Live Off One Income
The method of applying for couples who are both earning or people are having two-income. You can, therefore, get home without a mortgage. All you need is to live with a single income for some years. It works best for people earning decent salaries residing in areas that you can easily afford.
It’s, therefore, necessary to save enough money when living a simple life that you subsist off one income. With the method, you will keep 100% of the other person’s income. Besides, you can also make sacrifices that you will pay later, such as sharing a car, spending less on entertainment, and skipping vacations.
Using Seller Financing
Using seller financing is another option for people who don’t qualify for a mortgage. It will also work for people with low credit scores, can’t get a bank mortgage, and have a short record of employment. You might have enough money that will make you qualify to get a home loan, but most of the banks will ask for a minimum of 2 years with continuous employment to approve your application.
You need a seller that will offer seller financing because they are flexible. You will have to sign a promissory note for the seller to sign over the deed. After that, you own the house but pay every month. Besides owning that house, you can refinance it or sell it because you are a legal owner.
Getting An Investor
You might not look for a primary residence and search for an investment property. It becomes tricky to get a mortgage for investing. Here, you will need to have a high credit score, cash to fix the property, and high down payment.
You will, therefore, seek an investor who will cover all the expenses of purchasing a home and improving it. After fixing and flipping the house and make a profit, you share the proceeds with the investor.