[Financing]

What is Contract for deed financing and how could that help me purchase a home in Minnesota?

Instead of purchasing a home with a mortgage, the buyer agrees to directly pay the seller in monthly installments. The buyer is able to occupy the home after the closing of the sale, but the seller still retains legal title to the property. Actual ownership passes to the buyer only after the final payment is made.

Minnesota Contracts for deed have long been a financing option for property transactions For single Family-Condo’s-Town houses-Lake Properties-Investments-New Construction-Hobby Farms-even commercial. Virtually all types of Real estate for sale In Minnesota can be purchase on a contract for deed.

Why should I purchase a home on a contract for deed? Some of these situations may appeal to you if so a contract for deed is a great option for you.Poor credit scores who cannot secure traditional mortgage financing-Lack of Credit-Self employed-High debt to income ratios-Investment property”Don’t want mortgage insurance,Second house.
Now keep in Mind contract for deed financing is a short term solution. The sellers usually will finance the property for 3 to 5 years and then the buyer will have to get a mortgage and refinance the property or sell it. The rates are typically higher than a lender-mortgage company. 1% above prime is a good rule of thumb and amortized over 30 years of length.

If the buyer missed payments the seller has the right to cancel the contract for deed. Minnesota law is 60 days. “Seek legal advice on this matter.

When entering into contract for deed make sure you record the deed it’s the law in Minnesota and it protects the buyer from the seller trying to sell the house to someone else.

Before signing a contract for deed, prospective homebuyers should make sure they fully understand the extent of their obligations under the contract, all of the costs they will be responsible for and the risks they are incurring.

BoardWalk Premier Realty has been in business for over 22 years. We specialize in Owner financing. Contact us today we can help you find your home and draft the contract for deed for you. Remember the contractor deed drafted is basically your mortgage for the length of the contract till you refinance so you want someone who is very knowledgeable to draft the land contract.

651-334-8312
Steve Vennemann

example of a Minnesota contract for deed

CONTRACT FOR DEED PROPERTIES

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