Before we look at contract for deeds let look at a few other options that may save you some money.
- FHA requires 3-3.5 % down
- Conventional as low as 3 % down
- Rural area loans as low as a $1000 down
- First time home buyers programs.
Now banks have more criterial to qualify but the rates are lower and long term.
I have lenders I work with that we can try these routes 1st if that doesnt work we can always go to owner financing..
BoardWalk Premier Realty INC
Broker Steve Vennemann
MN contract for deed programs
We Specialize in contract for deed homes
MN contract for deed is the same as Installment sale agreement–Land contracts-Seller financed homes-Owner financing is a contract between a seller and buyer of Real Property in which the seller provides Financing to buy the property for an agreed-upon purchase price and the buyer repays the loan in Installment.
Generally the contract is amortized over 30 years.
Under a contract for deed, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership.
The sale price is typically paid in periodic installments, often with a Balloon payment at the end to make the time length of payments shorter than a corresponding fully amortized loan without a final balloon payment. 3-5 years on average.
When the full purchase price has been paid including any interest, the seller is obligated to transfer legal title to the property to the buyer.
An initial down payment usually 10% of the sale price from the buyer to the seller is usually also required by a contract for deed.
The contract for deed payments will be based on price after the minus the down payment. Taxes and Insurance are usually included in the contract payment monthly.
I dont recommend entering into a land contract where the payment is Interest only. I know some home buyers want to keep payments low but unless the home buyer has a plan how to lower the principal on the contract the buyer will owe the same amount that the buyer paid for the property when the buyer refinances the property. Not a good idea unless the purchaser saves money for a down payment when they refinance the property or gain alot of equity from market gains. I wouldnt bank on the market gains they are going up but you wont see the huge gains we have seen from the early 2002-2007 years. Minnesota has gained around 15% home values rising in 2011-2012. Unless banks loosen their mortgage standards the market will continue to be great for owner financed properties.
CREDIT NOT AN ISSUE IN MOST CASES.
We know it is hard getting a mortgage or a loan with a bank or lender or credit union in today’s real estate market.
MN lenders have tightened there standards and are making it tuff for home buyers to purchase a house.
Don’t worry we have contract for deed programs in MN that can help home buyers get into a home. Good or bad credit doesnt matter.
Mn home buyerrs will be able to choose from 100s of contract for deed properties in all counties in MN.
We are working with owner financed homes in all counties in MN who are willing to offer owner financing on their properties. For sale by owners offering contract for deed – land contract if you are in Wisconsin
Our Real Estate Company is ready to help you find a home.
We have been in business sense 1996 our company specializes in homes for sale contract for deed. Our Real Estate company is located in the Twin cities Metro area -Saint Paul & Minneapolis.
We help first time home buyers-Relocation-lake homes-cabins-lake shore-waterfront properties-condo-town homes-single family Real Estate-River front properties-hobby farms-acreage. MN contract for deed homes-Seller financed home. We have access to homes in the twin cities metro areas and suburbs-rural.
The steps to proceed with buying a home with MN owner financing?
Click on any MN contract for deed listing and send us an email with your name- a good phone number that we can reach you.
Details of what of what type of contract for deed home you are searching for? We would like to know what areas you want to live in. Counties or cities- Things you may like to have lake front property -acreage or if you want 3 bedrooms 2 car garage how large of a home. How much square feet do you need or want. Do you want a pole building or a barn or let us know what school system you would like to be in.
How soon do you want to move or be in your new home.
The more locations you are willing to look at the more choices you will have and raise your chances of successfully finding your dream home. We have 100s of properties on our site but seller financed homes sell quickly. Closings can be very quick if the buyer and seller agree to it. Buyers should not start looking to buy a cd home until they are ready to purchase with in 90 days or less from the closing date they are seeking to move.
If you have a credit score of 640 or above and you have not had a bankruptcy in the last 2 years or a foreclosure in the last 3 years we may be able to get you financing with a mortgage.
If the buyer quailfies for a mortgage that is the best way to go. Then our company can show you short sale properties-foreclosed homes. usually the banks prices are better than the real estate market homes due to they want to unload then not keep the houses.
We are here to give you the best service possible.
When you buy a home with FHA financing you usually only have to come up with 3.5% of the sale price and ask the seller to pay your closing costs. With a contract for deed financed house you will need around 10-20%. for a down payment. This is pretty typical for most seller financed properties.
Most Minnesota owners are willing to help buyers purchase their property for short term while buyers work on getting their credit scores higher.
A lot of our clients just need time after the foreclosure or short sale so they can get a FHA loan. Conventional is a longer wait usually around 7 years in most lending institutions.
You can call us to speak to a Real Estate Agent anytime. We recommend emailing us then I will have your information and can start a file for you. A Realtor will call you right back and go over the details and any questions you may have. I recommend you writing down all your questions you may have so when we talk we can address your concerns or questions.
Contract for deed homes in MN can get you tax bennefits from owning the property.
I will follow up with you with New contract for deed listings daily or as they come available. Please keep in contact with us and let us know what homes you like or if you want information on any particular property. You may email us anytime 24 hours a day. Our business hours are 9am – 8pm someone will always be available to answer any questions you may have.
If you already own a home and you want to sell it our Real Estate company can help. Our company has buyers searching for land contract homes all over Minnesota
Contract for deed homes for sale
Let us know what kind of properties you are interested in.
Example- Condos-town house-lake home-loft-waterfront properties-lake view-river front-single family Real estate or investment-Deeded access-rural-acres-hobby farm or if you need a farm. Usually a hobby farm is considered 5 acres or less.
If your financial situation changes let us know. This may effect your home searching process. If you have more money to put down this increases your chances of getting a home and more selections. If you have less money we will need to evaluate to see the best solution for you to buying a home in MN or WI. Give us feedback on the cd houses we send you so we can better search seller financed homes for you.
I can find contract for deed homes in neighborhoods you are searching or I can search by school districts. If you are looking for a home in say in Wayzata schools or Mahtomedi school district let us know we will look at just those school districts for you.
If you do not like properties let us know we do not want to show you cd homes that will not work for you. Our Real Estate company has access to seller financed new construction properties thru out the entire state of MN.
Each Builder has their own contract for deed terms. Usually they have a short term loan on the lot or Construction of the house so the length and down payment will vary from owner to owner.
Once we find a contract for deed home you are interested in a agent will discuss the price-down-cd terms that the sellers give us.
We always find out the owners contract for deed terms before showing any property. NO exceptions.
The reason why we find out the contract for deed terms first.
Simple if the seller wants 20% down and you are willing to put 10% we don’t want to waste everyone’s time and show you a home that is set up for failure. We don’t want to give you ups and downs we want to be able to show you a home that you can buy. There is Nothing good about liking a home then the owner want 20% down and it is more than the home buyer can afford. We can wait and see if the owner lowers their down payment at a future date then show it to you if we haven’t found a home you like. Sellers will finanace the note for the home buyer.
What owners want when offer contract for deed financing.
MN sellers want a large enough down payment to cover closing costs
Real Estate fees-Commissions and have some money in their pocket so if there is any damage to the home and the buyer does not perform or Refinance the property and the seller gets the home back they want to be able to fix it back up and sell it. As stated before we will contact all owners and discuss the price-down payment and length of the contract with you before showing the home.
How does the appointment process work?
Once we know the homes you like and the cd terms from the seller If they are acceptiable to the buyer. We will set up a convenient time to show you the property. We are pretty flexible for showings. I will try to get the cd terms for all the homes you like so we can show you all the homes in one day if they are close by each other. If they are far away we may have split up the showings and make it 2 days. Usually we can get them all done in a day.
An agent will meet you at the properties. I know the areas so we can usually get a showing done quickly if need be. Showings usually take a round 30 minutes to a 1-hour. Showing times depends on how much you like the house and if want to look at home in detail interior and exterior.
Once you find your dream home.
An agent will discuss the offer you want to make. We will draft your (offer to purchase agreement) or WB-11 Residential offer to purchase for Wisconsin homes. An agent will help you decide on a closing date that is acceptable to you. Down payment-Items the Mn home buyer will want with the property such as stove –Refrigerator-Microwave-Washer-Dryer-window treatments-garage opener or any items that need to be fixed. After going over all these details I will write the purchase agreement and call the owner or realtor- for sale by owner and let them know your offer is coming over and find out when we can get the owner to sign off on it.
Once the seller signs off on the contract for deed document and purchase agreement and any addendums we will set up a closing with a title company or law office buyers get to mke the choice of what title company they use in MN-Wisconsin most of the time the sellers decide especially if they are paying for title insurance.
If you are not offering a full price offer the owner may counter your offer or decline it or accept it these are the options the home buyer will have.
What are the negative options when offering less money in a purchase agreement?
- The seller may change their mind and not offer owner financing. We have seen this done a lot.
- Another offer to purchase may come in and you loose in a multiple offer situation.
- Seller may change their mind about the cd terms they are offering. They may raise the down payment or interest rate.
Get a home inspection.
Some cities Require a truth n housing inspection report that will help you in determining if there are any repairs needed. St.paul and Minneapolis will require you to fix any R N R or hazard items on the report something to think about you don’t want to be stuck with any large bills. Rural areas you will want a septic inspection some counties require this and if the septic is non compliant you will have to replace it. Have owner do a water test if they have a well.
Qualifying for MN contract for deed home?
Once in a while sellers will require a credit check to see how the home buyers credit score is and all around credit situation. I haven’t seen anyone get turned down for a short sale or foreclosure on their credit report. Sometimes I will know some information about the seller when they give us the cd terms.
The sellers that check your credit want to see if you had a foreclosure-bankruptcy so they know how long it will take you to finance their home. If the buyer had a bk or foreclosure a year or 2 in the past and the buyer is making payments now on their credit cards any other debt they know the buyer should be able to get financing with a bank in 2-3 years. Your credit history doesn’t have to be the best.
The more money the buyer has to put down the less risk for the sellers the more likely they will want to do a land contract with for the buyer.
Most of the homes offering financing is around 10% down if you have that we will find you a home.
Setting up the closing on your contract for deed house.
An agent will set up and coordinate all closings with you the owner-the listing agent and buyers agent. This does not cost you anything for us to set up and coordinate the transaction.
The title company or law office will be in contact with you to set up a time that works best for you. We will be in constant contact with you til the closing is complete and then follow ups to make sure everything is going well after you buy the property.
An Agent will be there at closing to go over any questions you may have. The closer will go line by line on the hud settlement statement with you and explain the closing costs and contract for deed. They will record the land contract for you. In Minnesota it is the law to record the contract for deed so make sure you use a title company and DO NOT go by anyone’s word telling you they will do it.
Closings usually are pretty quick roughly a half hour there is a lot less paper work than getting a mortgage thru a bank.
You will receive the keys at closing so you can move in the same day.
Also any warranties-Garage door openers ECT.
Buyers closing checklist
- Bring a drivers license to closing.
- Proof of insurance.
- Go to bank and get cashiers check made out to your self.
- Change of address with post office
- Contact credit card companies and let them know your new address.
- Get new utilities changed over-garage-cable-phone-internet.
Questions I get all the time on contract for deed homes.
How fast can I close on a contract for deed home in MN-Wisconsin?
We have closed properties in 10 days or less. This depends on if you have a home inspection. We will rush title work but something’s are out of our hands. Like title companies having openings to close the transaction-Assessment search. Any repairs the seller may have to make to complete the deal.
How do I come up with the money for a down payment to buy a contract for deed home?
Retirement accounts-401k relatives-friends. Most retirement accounts will let you take out money to buy a home.
How much is my closing costs?
Each closing is different depending on what day you close in the month. If you close at the end of the month you wont have to pay all the cd interest for the month. If you close on the 1st day of the month you will have to pay pro rated taxes and insurance for the month which will increase your closing costs. Also depends if you buy title insurance that will increase your down payment. The good news is you wont have to make a payment for 30 days. All contract interest is paid in arrears.
BoardWalk Premier Realty INC
Over 20 years experience in Real Estate.