Welcome to Contract For Deed Homes Minnesota, it is our goal to provide our clients results via Contract For Deed when traditional lender financing is not an option.
Usually our clients have underlying issues that affecting their credit scores for a variety of reasons. In some instances, clients are just not aware of the process to buy when they actually do have options via traditional lender financing. When reviewing your pre-application, we will assess all your options and help you decide which path to home ownership makes the most sense.
Helpful Additional Information Throughout The Contract For Deed Process:
**None of information on this site should be considered legal advice. Contract For Deed transactions can be complicated, sloppy, and problematic if proper forms and structures are not in place. Working with a investor that practices these services on a daily basis helps, if doing a contract for deed deal public to public, having an attorney review docs is not a bad idea. Most clients we serve via Contract For Deed Minnesota don't need the intervention of a 3rd party reviewer/lawyer, but client should know that is an option they have. If you need lawyer/attorney referral please advise.
**Disclaimer: Any/all information on this website is subject to change without notice. We do our best to update necessary transaction docs, payment charts are estimates.
**There are 3 Transaction to be aware of during the deal.
1stTransaction: Investor & Seller (Investor makes offer based on terms client provides. Investor buys home from seller.)
2ndTransaction: Investor & Contract For Deed Client (Same day as Transaction 1, after investor purchases home from seller, the investor will sell back to client via contract for deed. Title=Contract For Deed)
3rdTransaction: Investor & Contract For Deed Client (Once client is in a position to refinance/buy out the Contract For Deed, client will purchase again via financing. Title=Warranty Deed)
**The goal is to bridge the gap and provide a win-win opportunity for all parties. Investor is looking for smart and safe investment opportunities to invest in clients with the mind-set & ability that the plan is to work toward improving credit and buying out the Contract For Deed sooner than later.
**There are risks involved with Contract For Deed. If you default on payments please reach out so we can all collaboratively provide you a sensible action plan/exit strategy to at minimum help you retain your original upfront down payment. Sometimes selling is an option if falling behind in payments, or failure to secure financing at the end of the Contract For Deed loan term.
**Rates vary, during certain market cycles. Rates confirmed prior may significantly change in a short period of time. At time of offer submission all terms will be confirmed. Rates only get locked once Final Acceptance has been confirmed.
Current Rates:
10% down = 8.20%
15% down = 7.70%
20% down = 7.20%
**Not all homes & locations qualify. Even though selected home is in an approved community/location condition factors are considered. The higher your exceptions for condition and quality of the home, the better the results. If home has well/septic/etc. they will need to be compliant, or escrow funds will be needed to get up to compliance during/after a successful closing.
Homes under $500,000 = Minimum down payment 10%
Homes $500,000 - $700,000 = Minimum down payment 15%
Homes $700,000+ = Minimum down payment 20%
**Credit is not a qualifying factor in approval. Income, debt to income, assets & any other resources of funds will verified to determine and confirm your funds needed for a down payment.
**Home searches on Contract For Deed Homes Minnesota are preset with links back to Minnesota Metro Homes. If you deviate and change filters outside of theses parameters you might find homes that have qualifying issues.
**When calculating monthly payments, take into consideration property taxes, insurance, HOA fees if applicable. Since this service is Contract For Deed, these expenses are not escrow into monthly payment and are to be paid separately to proper entities.
**Be sure to check out our FAQ's.
**Be sure to check out our standard Contract For Deed Forms used during a transaction. Not a bad idea to have an attorney review prior if you have those resources. Take note, pending property selected, additional disclosures and documents maybe required.
