When considering buying a new house, the mortgage idea pops into many people’s minds. Nonetheless, this is certainly not the only way to your dream home. Sometimes, you may fail to qualify for a mortgage for some reason. When this happens, thinking of other ways to achieve your dream is best. So, seeking to purchase a new house?

Your dream of owning a new home is only a decision away from reality. You can choose any of the alternative methods of purchasing a new house. You only need to weigh the options and pick the one that best fits your situation and preference.

Here are seven excellent ways to buy a house:

1. Paying With Cash

One of the simplest ways to own a new house is by buying with cash. Cash house buyers help you transfer home ownership quickly and easily. Nevertheless, this does not mean you must pay all the amount upfront. But, if you can afford to pay at once, you can save yourself the stress of closing costs, high credit scores, and debt repayments. You will likely consider this option if you have a significant monetary gain, maybe from a financial trust or early inheritance.

2. Rent-to-Own Financing Option

Rent-to-own allows you to lease and purchase a house from the owner without involving third parties. It is a viable choice if you seek to buy a home without a mortgage. You can move into the house once you sign the rent-to-own agreement with the current owner. The best part is that a part of the rent you pay goes to the total amount of buying the house.

After some time, you can pay the deposit using the money set aside. The duration depends on how long the owner allows you to rent the house. It is also beneficial to acquire the property at the current market price.

3. Get a Government Loan

You can easily purchase a home if you apply for a government loan. There are various options, including the Federal Housing Administration’s loan with a 3.5% down payment. It is a workable option for first-time buyers, allowing you to own a home without a huge deposit.

Suppose you are a service member such as a reservist, veteran, or National Guard member. You can apply for a government VA loan. You can also access funding from the rural housing loan program that extends loans to homebuyers who wish to settle in rural areas.

4. Get a Private Loan

Borrowing from an individual like a family member is more accessible than going through traditional mortgage lenders to secure a mortgage. If your parents have some extra equity in the bank or their home, they might be willing to lend you the extra amount to put on your home.

You may also borrow from close friends who can supply the amount you need for your house purchase. Many choose this option since it is the only tax-free and almost interest-free loan you will get.

5. Buying at an Auction

If you have some cash but cannot find a mortgage lender to boost your home purchase, consider the real estate auctions in your area. Most houses at the auctions are either major fixer-uppers or foreclosed. However, it would be best to approach this option when you have ready cash since the amount for the auction homes must be paid instantly.

One primary benefit of buying a house at the auction is that sometimes you may get a higher-value property than the amount paid. Also, it saves you the burden of monthly mortgage or loan payments since you pay the whole amount in cash. However, you will need the purchase money and the auction-associated fees.

6. Borrow from an Insurance Policy

Any permanent life insurance policyholder can access a loan against the policy’s cash value. Therefore, if you have insurance, it is a fantastic way to finance your dream home since you do not necessarily have to repay the loan. Furthermore, the process is straightforward since it has no loan requirements. Again, you can use the money for more than buying a house.

Unlike other loans, you have complete control over the life insurance policy loan repayment. The interest rates for this option are also relatively lower. Generally, it is more of borrowing from yourself. Nonetheless, with all its benefits, this option has some setbacks. First, you will likely have less money for your heirs, and secondly, the accumulated interest reduces your cash value if you fail to pay the loan.

7. Seller Financing Option

Seller financing is a formal agreement where the house owner becomes your lender. The seller extends the property to you as a private mortgage. The main reason some people choose this option is the opportunity to retain the property rights while eliminating third-party lenders if you, as the buyer, default on the financing arrangement.

The option is also cheaper than a traditional mortgage. The homebuyer can negotiate deposits, interest rates, and payment periods.