Contract For Deed Homes can be found all over the 7 county Twin Cities Metro here in Minnesota. Currently there are approximately 300 homes for sale via contract. Many of these are offered by predatory investors looking to scam an unsuspecting buyer's down payment and interest payments. Don't become one of those people! There is a way to do a C/D properly and correctly.
Although this financing method has been used for 100 years in rural areas and more recently during the late 70's interest rate hike, it has recently received an undue reputation as a dangerous or iffy way to purchase a home. There has been a recently resurgence of popularity in contract for deed financing as credit scores across the board are lower than the expectations of traditional lenders.
My name is Robert Stewart, and my goal is to make contract for deed homes accessible and SAFE to the buying public. A great contract for deed begins with great negotiation and a clear understanding of the terms. A solid, thoroughly-reviewed contract is the basis of a sound purchase. Yes, you can buy contract for deed homes safely and effectively.
Contract for deed homes typically have terms that are negotiated such as purchase price, interest rate, down payment, and duration. Many sellers will offer a low purchase price in exchange for a higher interest rate, and vice versa. One must always have an eye on future value and have a plan in place in case the property cannot appraise at the end of the contract.
Contract for deed homes have several advantages. First, there are very few closing costs. A buyer typically pays prorated taxes and insurance and perhaps $500 to an attorney to draft the actual paperwork. Closing is done in front of a notary public, and contract to close times can be as quick as a couple days - not weeks or months like traditional financing.
I currently have a list of contract for deed homes. Most of these are actually bank-owned - that's right, the bank has elected to hold a C/D in lieu of an outright traditional sale. The terms are 5% down and 3.5% interest for 10 years. These are actually the best terms I've ever seen, and I'm sure they won't last long. Click here for a list of these contract for deed homes.