Buying a house without the bank may seem daunting, but it can be done. You simply have to consider alternative financing options that would work for you. Bank loans may be the norm for financing a mortgage, but they’re not the only means of buying a new home. Here are a few alternatives to purchasing a home without obtaining a bank loan.

Save Up to Pay Cash

If you’re a couple that lives off of two incomes, consider tightening your belt and putting one of those incomes into savings to go towards buying a new home. This may require a change of lifestyle and spending habits for the years it takes to save up for a home, but it can be done, especially if you both earn a good salary. If paying cash for a home is important to you, then living frugally is a sacrifice you should be willing to make. You could also look for ways to supplement your one paycheck income to reduce the “pain” of living on a tight budget.

Take Advantage of Seller Financing

Seller financing is an alternative to getting a bank loan to purchase a new home. With seller financing, the seller, in essence, becomes your bank, by agreeing to loan you the funds to purchase his home. You and the seller agree on loan terms and you sign a promissory note consenting to repaying the loan. Seller financing terms are often more flexible than what a bank has to offer, making it easier for buyers to purchase a home. Once you’ve signed onto a seller financing loan, the home is yours.

There are various benefits to obtaining a home through seller financing. If the seller owns the home outright, he can offer you better terms than a bank, such as lower interest rate to reduce monthly payments. Seller financing also eliminates bank fees and in many cases, real estate commissions as buyers deal directly with the seller. This enables you to save money on your transaction. By establishing a good rapport with the seller from the start, you can enter into an agreement that’s profitable for you both.

Not everyone is a candidate for seller financing. If you have good credit and are capable of putting down a substantial down payment for a home, seller financing could be a viable option for buying a house without getting a loan from a bank or mortgage company. When looking for a new home, narrow your search to those that offer seller financing to get the best deal on the home you desire.