Contract For Deed Financing Loan Program
These terms are subject to change at any time. For the most updated rates please contact us directly.
There are two financing options available to borrowers seeking contract for deed financing that are largely dependent on where the property is located within Minnesota.
For borrowers who are looking to purchase luxury real estate we lend up to a 1M purchase price. Please contact us directly for special financing terms.
Our loan program is strictly based off the borrower’s income and cash down payment. Credit plays no role in the qualification process.
15% Down Payment Contract for Deed Program
Our most popular financing program covers all of our primary locations served in Minnesota, which is mostly the St. Paul/Minneapolis twin cities metro.
There are also select areas in Minnesota we also include in the 15% down payment program:
- St. Cloud, MN
- Rochester, MN
- Alexandria, MN
- Duluth, MN
- Moorhead, MN
Loan Terms 15% Down Payment Program:
- 7.25%, 30 yr. fixed rate
- 15% minimum down payment
- Minimum purchase price $200,000 single family houses
- Townhouses minimum purchase price $150,000
- 6% added to contract for deed price from what we purchase
Not sure if you can afford the monthly payment? Use our Monthly Payment Calculator!
20% Down Payment Contract for Deed Program
Our 20% down payment rural housing program is used for the rest of Minnesota that does not qualify under our primary location coverage areas.
Keep in mind these are our minimum down payment requirements. Any borrower can elect to put 20% down in order to take advantage of the more attractive loan terms. A higher down payment means less risk to us as the investor, so we are able to pass along the savings to you the borrower.
Loan Terms 20% Down Payment Program:
- 6.99%, 30 yr. fixed interest rate
- 20% minimum down payment
- minimum purchase price $150,000 single family homes
- Townhouses minimum purchase price $100,000
- 4% added to contract for deed purchase price from our purchase
Qualifications and Getting Started With The Pre- Approval Process
- Minimum total household income of $45,000
- No pre-payment penalty
- Bad credit OK (no credit check is performed)
- 3-5 year balloon payment
- Only owner occupied properties (real estate investors are excluded)
- No land, condos, or commercial property. Townhouses accepted.
- No manufactured homes (must have a foundation)
- No refinances if you currently own a contract for deed property
The following is needed to issue a pre-approval:
- 2 years most recent tax returns (bank statements for self employed)
- Electronic statement to verify down payment
- 2 most recent pay stubs if W2 earner
- Copy of photo I.D such as driver’s license or passport
We need to verify your income, employment, and down payment in order to issue the pre approval. Once the loan application is completed you can go home shopping!
There are zero out-of-pocket costs to you during the purchase
The seller shall pay closing & title fees on our acquisition of property. We do our best to negotiate this without affecting the purchase price, but there is a possibility closing closing costs will get wrapped into the loan amount effecting price marginally.
Instead, how we profit is selling the home to you at a higher purchase price than what we paid for the home at closing on a contract for deed.
Why do this in contract for deed?
In Minnesota charging any out-of-pocket fees to the borrower in a contract for deed transaction is not allowed.
By wrapping the 3-5% into your loan amount we will have to wait until you refinance before realizing this capital gain as the investor, which potentially could be the full 5 year term. It creates a win-win situation where we only profit if you are successful in obtaining bank financing.
Here is any easy loan example:
- We purchase the home you pick out for $200,000
- At the closing table we sell it to you on a contract for deed at $206,000 (3% more than what we paid for it)
- Your Down Payment & Loan will all be based off the $206,000 sales price
- Down Payment (20% used in this example) = $41,200
- Loan Amount = $164,800
- Monthly Payment (7.75% interest rate) = $1,180.65
Keep in mind for budgeting purposes you will pay property taxes, association dues (if applicable), & homeowner insurance separately. The homeowner insurance premiums can vary widely as credit does play a role, so you will want to speak with your insurance person early in the process to get an idea of cost for budgeting.
"When The Banks Turn You Down We're Here to Help"
-Chris Block Owner & CEO
Why Contract For Deed?
It is the #1 alternative home financing solution since credit is not a qualifying factor for loan approval.
We would love to hear from you! Please fill out the form below completely, and then provide a brief message so that we can expedite the process of handling your inquiry. Talk soon!
No Credit Check
Bad or no credit is OK! This contract for deed financing program is strictly income & cash down payment based.
Fast & Easy Application
Get an immediate response on loan approval without all the hoops a bank makes you jump through.
Get The Home You Want
Don't let that perfect house slip by because the bank turned you down for financing. All of Minnesota qualifies.
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