Additional Information

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 affect their credit scores for a variety of reasons. In some instances, clients are just not aware of the process of buying when they 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 the 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 an investor who practices these services daily helps, if making a contract for a deed deal 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 clients should know that is an option they have. If you need a 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, and payment charts are estimates.

**There are 3 Transactions to be aware of during the deal.
1stTransaction: Investor & Seller (Investor makes an offer based on terms client provides. Investor buys a home from the seller.)

2ndTransaction: Investor & Contract For Deed Client (Same day as Transaction 1, after investor purchases home from a seller, the investor will sell back to the client via contract for deed. Title=Contract For Deed)

3rdTransaction: Investor & Contract For Deed Client (Once the client is in a position to refinance/buy out the Contract For Deed, the 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. Investors are looking for smart and safe investment opportunities to invest in clients with the mindset & 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 with 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 time. At the 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 the selected home is in an approved community/location condition factors are considered. The higher your exceptions for the condition and quality of the home, the better the results. Minneapolis & Saint Paul have stricter investor guidelines due to municipality restrictions; case by case. If a home has a 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.

Wright, Sherburne, & Chisago Counties are also approved communities. A 15% minimum down payment is required. All locations outside approved communicates on a “lake” also approved with a 15% down payment.

Homes under $500,000 = Minimum down payment of 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. A copy of your Credit Karma report will be sufficient. In addition to 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 to Minnesota Metro Homes. If you deviate and change filters outside of these parameters you might find homes that have qualifying issues.

**When calculating monthly payments, take into consideration property taxes, insurance, and HOA fees if applicable. Since this service is Contract For Deed, these expenses are not escrowed into monthly payments 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 may be required.