Is Buying a House Without a Loan Possible?

Buying a house without a loan sounds great, doesn'tplan well, shop smart and live modestly for a few
it? No monthly payments. No worries about losing theyears. The following example shows you the steps
home to the bank. So is it possible to buy a homeyou might take to accomplish this.
without a mortgage loan, even if you just have a1. Find the cheapest apartment around.
regular job and no rich parents to foot the bill? It is.You might even consider renting a room to really cut
Saving For A Homeyour expenses. With other cost cutting, we'll suppose
Start saving for your future home purchase - that'sthat this allows you to set aside about $550 per
an obvious first step. In the past home prices maymonth. Live there for four years and you'll have
have been rising faster than your savings, making thisabout $28,000 (with interest) in the bank.
an unworkable plan. But at the moment (2009) prices2. Buy a cheap mobile home on property.
are actually still falling, making it a great time to saveMove to another city if necessary to find a place
for a future purchase.under $30,000. A mobile home on property
You might think you don't have enough income toappreciates in value, unlike in a park. You also won't
set aside money every month. Most likely there is ahave to pay lot rent. You want to buy at a truly low
way, if you are serious about having a debt-freeprice, so take your time, and keep saving while you
home someday. In fact, in some areas the cost ofsearch.
buying is still more than the cost of rent, so if you3. Save more money.
think you can buy with a loan, you can certainly rentIt's cheap to maintain a mobile home, and you'll now
and save the difference.have no rent nor payments. Even after accounting
In Tucson, Arizona in 2005 (when we lived there), forfor property taxes and insurance you should be
example, renting a small house often cost $600 topaying out less than what renting cost you. Because
$800 less than buying the same house. If you couldof this you can boost your savings from $550 per
buy, you also could rent and set aside the difference.month to perhaps $700, or even $1,000 if you rent
That would have been a good plan, as it turns out,out a room for $300 per month - something I did
since those homes now sell for a lot less.easily in my mobile home when I was younger.
If rent is similar to the costs of buying where you4. Move up to the next house.
are, you still have the option of renting a smaller,You can sell this first home a few years later for
cheaper place. That temporary sacrifice will allow todecent profit because of appreciation and the fact
set aside money for your future home. And if youthat you bought wisely. That money along with your
are serious about this you'll find other places to cutsavings might get you a small home that needs some
your costs and so increase your savings.minor fixing up. If you take your time and buy cheap
Buying Your First House Without A Loanyou immediately increase your assets, so you can
It takes a long time to save enough money to buy amore quickly move up to the next home.
home for cash if you try to start out with your5. Continue the process.
dream home. Even setting aside $800 per month likeThe secret here is to always rent or buy less than
in the Tucson example, would mean at least fifteenyou can afford, so you are able to set aside money.
years to have enough to buy a typical small house -You use that, along with smart shopping and good
and that's assuming some return on your money andnegotiating, to periodically move up to a better home
prices staying the same.until you have your "life home." This is how buying a
Fortunately there's a quicker way if you're willing tohouse without a loan is possible.