Contract For Deed Financing Terms

For borrowers who are looking to purchase real estate above $800,000 we loan up to a 2M purchase price. Please contact us directly for special financing terms.

Our loan program is based off the borrower’s income and cash down payment; credit is not part of loan qualification.

A more holistic approach is practiced when using DTI (debt-to-income) ratios. We look at the borrowers entire financial picture, including assets when applicable, in determining loan amounts.

In general, buyers can expect stricter DTI requirements for our 10% down payment program versus the higher 20% down payment loan.

10% Down Payment Contract For Deed Program

(up to $800,000 sales price)

This financing option covers all of our primary locations served in Minnesota, which include the St. Paul/Minneapolis twin cities area. Certain cities such as Alexandria and St. Cloud are also included.

Loan Terms 10% Down Payment Program:

1. 10.50%, 30 yr. fixed rate, no pre payment penalty
2. 10% minimum down payment
3. Minimum purchase price $300,000 single family house
4. Townhouse minimum purchase price $250,000
5. 5 yr. balloon payment

Not sure if you can afford the monthly payment? Use our Monthly Payment Calculator!

20% Down Payment Rural Home Loan Program

(up to $800,000 sales price)

Our 20% down payment rural housing program is used for the rest of Minnesota that does not qualify under our primary location coverage areas.

Loan Terms 20% Down Payment Program:

1. 10.50%, 30 yr. fixed rate, no pre payment penalty
2. 20% minimum down payment
3. minimum purchase price $275,000 single family home
4. Townhouse minimum purchase price $250,000
5. 5 yr. balloon payment

Ready to get started? Contact Us Now!

Loan Qualifications And Getting Started With The Pre- Approval Process

Below are the the loan qualifications for our contract for deed financing program:

• Minimum total household gross income of $150,000
• Bad credit OK
• Must be owner occupied (no investors)
• No land, condos, or commercial property
• No manufactured homes (must have a foundation)

The following are needed to issue a loan pre-approval:

• 2 most recent tax returns
• *An exception to tax returns is if you are a new W2 employee where this is not possible*
• Bank statement to verify down payment (funds from sale of property OK)
• 2 most recent pay stubs if W2 earner
• Self Employed YTD P & L statement with 2 months bank statements checking/savings 
• Copy of photo I.D such as driver’s license or passport

For loan qualification we need to verify: income, employment, and down payment in order to issue a pre approval.

Once approved you can go home shopping!

There are No Closing Costs During The Purchase

There will be no out-of-pocket or upfront closing costs charged to the buyer at the time of purchase in this contract for deed transaction. The down payment and cost of private home inspection are the only expenses a buyer can expect to pay.

In contrast to bank financing this can save a buyer thousands of dollars in closing fees that have to be paid upfront at the closing table.

However, during our purchase of the property we will incur closing costs. We will attempt to have the seller pay this as part of the executed purchase agreement. If we are unsuccessful in negotiating this with the seller the cost will be passed to the buyer by increasing the contract for deed purchase price. This amount will be disclosed to the buyer, along with a copy of the purchase agreement, for approval before proceeding with the contract for deed purchase.