Common Alternative Finance Options for Home Owners

Banks are not the only institutions available to new home buyers with more alternative finance options becoming available.

Are you looking for alternative finance options to buy a new home?

Buying a home is an exciting and life-changing process. It is also an extremely stressful and overwhelming process. 

The home buying process can be a long and exhausting one. You have to figure out home loan financing, find the right real estate professional to work with, find your ideal home, and more. 

This process can become even more stressful and overwhelming if you can’t use a traditional mortgage to finance the purchase of your home. 

Fortunately, there are several ways to finance your home that doesn’t involve a traditional mortgage. By using one of the alternative methods, you can purchase a home you love and ease your financial stress. 

If you are looking for alternative financing options to purchase your home, here are several options to consider.  

Owner Financing 

If you are wondering what does owner financing mean, the answer is pretty simple. When you purchase an owner-financed home, the owner takes the place of the bank. Both parties sign a promissory note, the owner finances the sale, and you pay your monthly payments to the owner instead of the bank. 

Government-Issued Loan 

One way to finance your new home is to qualify for a government-issued loan. There are a few options for these types of loans, including a Veteran Affairs (VA) loan, U.S. Department of Agriculture (USDA) loan, or Federal Housing Administration (FHA) loan. 

While there are specific requirements you need to meet to qualify for these loans, they are a great alternative to traditional financing. 


If you want to skip the overwhelm of a mortgage formula and more, consider crowdfunding the financing of your home. Crowdfunding has taken the world by storm, with people crowdfunding everything from the launch of their new business to something more serious as a life-saving surgery. If you have an intriguing story that will engage an audience, consider crowdfunding as a way to finance your home.

401(K) Loan 

One way to finance the purchase of your home is to borrow from your 401(k). With this method, you are borrowing from your retirement fund and paying yourself back every month. There are pros and cons you should carefully consider before going forward with this method. 

Investor Financing 

If you want to work with non-bank mortgage lenders, consider investor financing. This is usually an option to works best for homes that will be remodeled and flipped. If you are looking for an investment property instead of your forever home, consider investor financing. 

Alternative Finance: These Are the Options for Financing a Home Purchase

If you are looking for alternative finance options for your home, this guide is for you. 

There are several options available, including owner financing and government-issued loans. You can also use crowdfunding, work with a hard-money lender, or borrow from your 401(k). Depending on your plans for the home you are buying, investor financing might work for you.

Use one of these options to finance your new home. 

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