No. This contract for deed financing program is only for residential real estate.

We like to ideally see two years worth of tax returns. However, we care more about current and future income during the contract for deed. For self employed a minimum of 1 year is needed, and we can verify your income through bank statements.

We will work with brand new W2 earners who are starting a job or switching careers.

Yes. You can purchase a home using contract for deed financing after your discharge date.

Yes. You will most likely need permission from the bankruptcy judge to make a purchase, and unlike banks our contract for deed financing program is not based off your credit. This will make it easier obtaining financing.

Without a divorce decree the answer is most likely no. In Minnesota your spouse will still have an ownership interest in the property; even if she does not sign any purchase documents (you try to buy it yourself). You should seek legal advice with an attorney to discuss this matter further.

Once you identify a home we will begin the process of acquiring the property using your Realtor of choice, or we can provide referrals if necessary.

We always try to negotiate the best deal possible as it is in both our best interests. You will be consulted on all counters/negotiations with the seller of property to make final decisions. Once our offer is accepted you will have an inspection period to ensure the home does not have any major hidden issues, and if we need to cancel the purchase due to a bad inspection no earnest money will be lost. We will walk you through every step of the way and be available to answer any questions or concerns you may have.

It is not a requirement typically with a contract for deed as this is a common rule from banks. As you may be able to guess the seller is obviously not going to have a problem with the valuation of property since the purchase price is what they set. This is why in a traditional contract for deed purchases it usually is a good idea for the borrower to obtain their own private appraisal on the property. It can cost up to $450 on average, but is well worth it to the buyer.

However, with our specific financing program where we are purchasing the home from seller in order to close on a contract for deed with you we will be obtaining an appraisal. This is an added benefit to you as the borrower for using our financing program. 

In a traditional contract for deed purchase a closing does not need to be performed, and therefore both buyer and seller can save thousands in lender and title fees.

However, with our loan program we will incur closing costs while acquiring the property with the explicit intent of selling the home to you. We will ask the seller to pay our closing costs during negotiations, but if they refuse these will be passed through to the buyer by adding to the contract for deed sales price. 

Your down payment is due after all inspections and appraisals have been completed, which typically is one week before closing.

If you are selling a home in order to purchase the down payment is due on your closing date.

No there is not. Down payment assistance programs are run through local governments such as city, county, and state and can only be combined with bank financing. For example, FHA or Conventional loans.

Since credit does not matter in contract for deed the down payment is used as the main way to reduce risk of default. By having more “skin in the game” a borrower is less likely to default on the loan.

A higher interest rate compensates us as the investor since banks only lend to what is considered “prime” or the most qualified borrowers. In Minnesota, the MN Department of Commerce regulates the maximum usury rate that can be charged on a contract for deed.

The borrower pays property taxes & homeowner insurance separately from the monthly payment when they become due. With contract for deed financing there is no escrow account that is common with a bank mortgage (the bank pays these on your behalf and it gets added to your total monthly payment).

What this means is your monthly payment to us is only principal & interest (PI). Keep this in mind for budgeting purposes. Every listing should state current property tax amounts. For payments it is twice a year (May 15th & October 15th). As for homeowner insurance you will get this through your preferred company as there are discounts with combining home & auto together. Credit plays a factor in homeowner insurance premiums, so the only way to know the cost is to contact your insurance provider. We will be added to the policy in case a claim is made to ensure the property is fixed (example hail damage to roof). This is fairly standard practice for loans on a property to ensure repairs are made.

Lastly, keep in mind that insurance and property taxes need to be kept current just like your monthly payment. Getting delinquent with either of this constitutes a default in a contract for deed. 

The closing shall be up in the Alexandria, MN area so you do not need to attend closing. We will pre-sign the few closing documents needed from you, and that way you can focus on the final walk thru that gets completed typically the day we close. We want to make sure nothing has changed with the home since the inspection period (air conditioner goes out for example); as well as the seller has sufficiently cleaned the house and removed all trash. We will instruct the seller to have all keys/garage door openers at the home, so once the closing is completed you can move in!

No. Our title company shall record the contract for deed with the county on your behalf. You will get a recorded copy that can be used to homestead the property, which is usually 3-7 business days from closing.

Yes, and this is the preferable method. Borrowers who elect to send a check every month will need it to be in the form of a cashier check.

Yes. There is no pre-payment penalty with our contract for deed financing. This means you can pay off the loan/refinance into a bank mortgage at any time. You can also make extra payments on the principal at any time. This assumes you are current on: monthly payments, homeowner insurance, and property taxes (any extra payments go towards delinquent amounts first).

Yes! This is one of the biggest benefits versus rent to own as an example where you are still in a tenant/landlord relationship. Check out our page that goes through all the advantages to the buyer in a contract for deed to learn more.

No there is not. The lenders we work with know that we are selling the property to you on a contract for deed, so this clause is removed from the loan product. 

We do not report payments to the credit bureaus, which is common with contract for deed unlike bank financing.

However, when you go to refinance the home with a bank mortgage the lender will contact us to verify payments made during the loan. It will have us state if you had any missed payments, current payoff information (the remaining balance left), etc. so this is still beneficial for refinance purposes.

There will be language included in the contract for deed allowing the borrower through written request to have statements provided showing all mortgages/liens being paid on time. A simple email to us is sufficient. 

If the seller were to stop making payments the buyer may pay the mortgage instead, and deduct these payments from their monthly contract for deed payment. 

The strictest lending standards are used for our company’s business financing. if we were to even miss 1 payment on any of our contract for deed homes it would be impossible to gain business from any bank or lender.

Therefore, borrowers can have peace of mind knowing that our bank mortgage lenders are constantly ensuring we are conducting business with the highest professional standards.

Yes.

As the owner you may sell the property at ANY time during the contract for deed. In fact, it is highly recommended borrowers do this as a last resort if they are unable to obtain bank financing by the balloon payment date. At the very least you do not need to lose your down payment along with principal paid towards the loan balance.