diff --git a/.lounge_config b/.lounge_config
new file mode 100644
index 00000000..86428c50
--- /dev/null
+++ b/.lounge_config
@@ -0,0 +1 @@
+~/.lounge
diff --git a/src/command-line/index.js b/src/command-line/index.js
index 36633c28..860a2572 100644
--- a/src/command-line/index.js
+++ b/src/command-line/index.js
@@ -13,7 +13,25 @@ program.version(Helper.getVersion(), "-v, --version")
 	.option("--home <path>", "path to configuration folder")
 	.parseOptions(process.argv);
 
-Helper.setHome(program.home || process.env.LOUNGE_HOME);
+if (program.home) {
+	log.warn(`${colors.green("--home")} is deprecated and will be removed in a future version.`);
+	log.warn(`Use ${colors.green("LOUNGE_HOME")} environment variable instead.`);
+}
+
+let home = program.home || process.env.LOUNGE_HOME;
+
+if (!home) {
+	const distConfig = path.resolve(path.join(
+		__dirname,
+		"..",
+		"..",
+		".lounge_config"
+	));
+
+	home = fs.readFileSync(distConfig, "utf-8").trim();
+}
+
+Helper.setHome(home);
 
 if (!fs.existsSync(Helper.CONFIG_PATH)) {
 	fsextra.ensureDirSync(Helper.HOME);
diff --git a/src/helper.js b/src/helper.js
index 2fae848e..127f0f38 100644
--- a/src/helper.js
+++ b/src/helper.js
@@ -60,7 +60,7 @@ function getGitCommit() {
 }
 
 function setHome(homePath) {
-	this.HOME = expandHome(homePath || "~/.lounge");
+	this.HOME = expandHome(homePath);
 	this.CONFIG_PATH = path.join(this.HOME, "config.js");
 	this.USERS_PATH = path.join(this.HOME, "users");