A number of events such as a job loss, recent foreclosure or a short sale, unpredicted medical expenses, divorce or any other event could have a huge impact on your credit history which may make it very difficult or nearly impossible to obtain financing when you are looking to buy a home. No matter what your situation is, our team of real estate professionals has a lot of options to chose from and is ready to help you buy a home on a contract for deed in MN even if you have bad or no credit, just get in touch and let’s see what we can do for you!
Contract For Deed – Alternative to Traditional Financing
If you do not qualify for FHA or Conventional financing, contract for deed is probably one of the few options left that could help you become a homeowner without having to wait for another year or two before you qualify for traditional financing.
Contract For Deed Options
There are a few different options you have when it comes to buying a home on contract for deed in MN. A common misconception is that you have almost no inventory to choose from or have only overpriced properties in need of repair (fixer uppers) that are located in less desired neighborhoods. To some extend this is true and you will find a lot of contract for deed homes that fit this description if you chose to work with a real estate agent that doesn’t have any other options to offer you. This also holds true if you are dealing with someone that you found on Craigslist and are trying to buy a home without an experienced and licensed buyers agent representing your interests.
More Contract for Deed Homes in MN To Choose From
Although there are a few good contract for deed homes available on Craigslist, the options to choose from are very limited, but not when you are working with Resource Real Estate Group at Remax Results. We can help you buy almost any home for sale in MN on contract for deed regardless whether an owner is offering to carry it or not.
Buy Now – Refinance Later
Thats right, you don’t have to wait, you can buy now and refinance into a mortgage later when you are ready and eligible to get financing. We have a number of contract for deed options to choose from listed below. We understand that each situation is different and knowing your options is important so if you have any questions, feel free to reach out to us and we’d be glad to help.
10% Down Program
this program enables you to buy any house on the market within Twin Cities and surrounding areas and requires you to put at least 10% down of the purchase price. You will need to provide tax returns, proof of income, recent credit report and show the ability to refinance within 1 to 3 years. You will also work with a mortgage officer that will guide you and help you obtain long-term financing and help you refinance out of contract for deed as soon as possible.
Build a Home on Contract For Deed
This is truly a unique program that enables you to build a brand new home on C4D. There are a number of house plans to choose from that can be customized to fit your family needs. 15-20% down payment is required depending on your financial situation. We work with reputable builders that are dedicated to make your home dreams come true. You will be required to refinance within 1 to 3 years but have an option to extend your contract for deed 1 year at a time, not to exceed 5 years total.
$2000 Down Contract For Deed Program
This is a 10 year contract for deed program that requires a minimum of $2000 down payment and requires you to go through house and credit counseling. Maximum purchase price is $225,000 and you have to buy within approved service area. This program is not available at this time.
Direct Owner Financing
There are contract for deed homes available that are offered directly by owners and we can help you find them. There are very few options to choose from, but it requires least qualification compared to rest of contract for deed options available.
What are the qualifications?
Although you are not dealing with a bank when you are buying a home on contract for deed, there are a few requirements that you might have to meet. Most of the contract for deed financing is available through a third party investor or organization which would require you to fill out the application and go through review process but if you are dealing with a home owner that is willing to carry it, you might not have to qualify at all.
- Minimum credit score of 525 or more
- Annual household income of $50,000 or more
- Preferably no prior evictions, felonies, criminal background
- At least 10-15% down payment, unless you are going with $2000 down program
- Proof of income/pay stubs
- 2 years of tax returns
Don’t have any money down?
If you don’t have 10-15% down, don’t qualify for FHA or conventional financing but want to become a home owner, we can still help. We have a Lease with Option to Buy program (aka Rent To Own) that might work for you. Although you are not a home owner when you enter into a Lease with Option to Buy, you have the first right to buy a home at a pre-determined price when you are ready. This program is fairly flexible and gives you an option to rent a home for a year and purchase it when you have your financing ready. If you still cant buy in a year, you can extend your lease one year at a time not to exceed 5 years total. If you choose not to buy, you can simply give a 60 days notice and find another home.
Not sure if contract for deed is right for you? Get in touch with us and we’ll be more than happy to provide you with more information and answer any of your questions.
Also, it is important that you read Agency Relationships in Real Estate