Do you HAVE to take out a house loan to buy a house?

[Anonymous]

Or can you make a down-payment and make mortgage payments off of that

Updates

1 y

I was speaking to my dad and he has no idea what he's talking about. That's why I was confused. He bought he house through the VA and had a voucher but you still need a house loan to purchase a house. He didn't do it with cash so I don't know why he's lost

[ProbablyClueless]

Technically, no, but why would the seller want to go into a private financing arrangement with a buyer, unless the buyer was paying fully up front and in cash? It's a huge amount of liability. Mortgage payments go to the bank, not the seller. The bank fronts the full outstanding payment for the property, which allows the seller to be completely finished with the transaction.

[argot]

A mortgage is a home loan. If you have the funds, you can buy real estate for cash. If you don't have the funds and you want to purchase things you can't afford, then you'll need to find a lender that is willing to lend to you for some specified terms.

[argot]

Generally a bank originates home loans. That said, a seller can extend a loan to secure the sale of a property and retain equity in the property with the right to take back the property if payments are missed. This concept is generally refereed to as a take-back mortgage. You don't often see that sort of transaction when it comes to homes, but it is more common when it comes to raw land. Banks don't tend to lend on raw land, thus you have to be a cash buyer. In order to increase the likelihood of sale, some land owners are willing to work that sort of deal to make the transaction work.

[SecretsofKB]

So mortgage payments are payments on the loan you took out from the bank. You can buy the house without taking out a loan, but that pretty much means you need to purchase the home outright with cash.

[rosemilk]

? if you have a mortgage, you have a loan...

[WindAtMyBack]

You can pay cash.
You can rent to own.
You can do a land contract. In my opinion a land contract is not a loan, but some people see it as one.

[jamesgoldman]

If you don't have the funds to buy outright

yes you do


N. b. everyone I know with property were cash buyers

[Anonymous]

You realize a mortgage is a loan against a home, right?

[Asker]

Yes I do I was just confused for a second

[QuietRunner]

You can pay cash

[jahaims]

A mortgage is a loan