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May 2019

what to look for when buying a house

[2019 Tips] What to Look for When Buying a House

1000 500 Taylor Witt

Buying a house is a very big deal and with so much to be concerned about, it’s necessary to focus on the most important items. So, if you’re wondering, “what to look for when buying a house,” here then are 11 important things to consider and investigate before you sign that offer to purchase:

The Yard is Key

Homebuyer Yard

 

Those that know what to look for when buying a house always take note of the condition of the yard because a well-kept and landscaped exterior can mean that the present owners care about the condition of their home and have worked hard to maintain it. A deep-green nicely trimmed and edged lawn can mean a great looking home interior while a weedy brown unkempt mess can mean trouble.

 

What About HVAC?

On a pleasant 70-degree day almost any home will feel comfortable. We do suggest, however, that you view your prospective new home on a very hot or very cold day—of course depending upon the season. If the AC is struggling to get the house below 80, or if the furnace can barely raise the temperature over 68 degrees, those who know what to look for when buying a house will recognize these occurrences as danger signals. Unless that doesn’t bother you, check Fresh Air Guide product review for an efficient new air conditioner.

Look Up There

Roofs can be deceiving because they may look great from below, but a more careful inspection can present deficiencies that can’t be seen from the ground. Extreme hot, cold, wind, rain, snow and hail are all thing that can damage roofs and these problems will be evident if you take a closer look. Also find out the age of the roof because covering materials like shingles do have a certain life expectancy.

Paint Issues

Those that know what to look for when buying a house will not be fooled by a new paint job. Yes, clean freshly painted walls can look great, but they can also easily cover up problems like mold, mildew and water leaks. Make sure you understand where leaks come from and how they can be cosmetically covered up. Getting rid of brown water stains does no good if the source of the leak is not removed, so make sure you are able to look beyond the paint.

History of the House

Check the property area’s flood history. If the home is on a flood plain, that means you can have lots of problems along with a big insurance bill. If your home is not in a flood-prone area, make sure that it doesn’t have internal problems. A neglected overflowing toilet can cause a lot of flood-like damage if it isn’t promptly noticed, so ask the present home residents about any such occurrences. Homeowners generally have a duty to disclose any home defects to you even if you intend to purchase the home on an “as is” basis.

Fires?

Home buying issues

A previous fire does not mean you should automatically dismiss the home from your list. Those that know what to look for when buying a house understand that a one-time event caused by a one-time problem should not necessarily dissuade them from considering a purchase. A fire that was caused by faulty aluminum wiring, however, might be a big problem if the house still has its original aluminum wiring in place.

Funky Smells

If you get an unpleasant whiff of anything, beware. Musty odors can mean mold caused by water leakage, and a kitchen that smells like an old restaurant could have a faulty or non-existent exhaust system. Smelly bathrooms can mean waste pipe issues and if the house smells like an old dog, an old dog probably lives there even if he isn’t home at the time you are shown the property. Of course, if the house smells artificially clean due to numerous pleasant odor-emitting devices, those that know what to look for when buying a house will be sure to take careful notice.

Insulation

A poorly insulated house is a naked property. Your parents’ home may have had the twin trouble of less-than-adequate insulation combined with an inefficient furnace that shot 60 percent of the heat created up the chimney. With today’s higher energy costs, it’s important to make sure that your home has the proper amount of quality insulation, and this includes windows and doors that do not let cold in and heat out. Also look for a home equipped with ceiling fans that will equally disperse cool and warm air depending upon the season.

Smart Home

Smart home technology

 

Smart homes are the key to safety and efficiency. Those that know what to look for when buying a home realize that smart innovations like thermostats, solar systems, garden irrigation systems, LED lighting configurations and security systems all make homes safer and of course more valuable. A fully automated home with a central control center is often a sought-after property.

Plumbing

Let’s not neglect the sometimes-forgotten plumbing system. Just because the toilets flush and the faucets run, doesn’t mean that everything is OK. Look on the floor below bathrooms for water stains, and open cabinets to make sure that pipes are not corroding. Check the garbage disposal and make sure that the dishwasher does not fill up the sink with greywater during its cycle. All washer and dryer connections should be clean and tight.

Have It Inspected

Image result for home inspection pictures

Finally, even though you have done your diligence and are convinced that the home is sound, employ a professional inspector to thoroughly assess the condition of the property. While this may cost $500 or more—and you have to pay for it—it could be the most important $500 you will spend during the home purchasing process. Inspectors should know all of the tricks homeowners utilize to hide defects and problems, and anything uncovered during the inspection can be made the responsibility of the seller or you can alternatively decide not to sign that purchase offer.

Buying a house is a big deal and you should take the time to know exactly what you are buying so that you can avoid costly issues that can occur the minute you have closed the deal.

effects of environmental hazards

[For Homebuyers] Understanding Environmental Hazards

1000 500 Taylor Witt

Based on statistics from the National Association of Realtors, 5.34 million people bought existing homes in 2018. Homes built before 1990 fall into the “older“ category, and those built before 1920 qualify as “vintage.” 

Older houses often have perks like wood floors and established neighborhoods, but they also have increased risks of potential environmental hazards. Four of the most common are asbestos, radon, lead paint and mold. It’s hugely important to understand the effects of environmental hazards, so let’s take a look at what first time buyers and others need to be aware of.

Asbestos

A natural mineral and building material prized for its fire-resistance and durability, asbestos was widely used before 1980. Then, it fell out of favor because of its health risks and effects of environmental hazards, but still ended up in homes. Common sources include insulation, floor and ceiling tiles, adhesives, and textured wall and ceiling paint.

The material is not usually dangerous if it’s in good condition or sealed, but decay and renovations can cause it to come apart and release harmful particles into the air. The fibers can embed themselves in the bodies of people who inhale them and cause serious illnesses, the most serious being a fatal cancer called mesothelioma. The fibers can also cause other types of cancer or an inflammation-related condition known as asbestosis.

Black Mold

Toxic mold grows outside in plant debris or soil but can also grow inside, especially in wet or humid places. It usually develops in unseen locations and feeds on organic sources like carpet and drywall, where it breaks off and enters the air.

People who breathe it experience symptoms similar to colds or allergies, but conditions like chronic fatigue and headaches may also develop. When people are allergic to mold, they may develop nausea, vomiting, and bleeding in the lungs or nose. Severe cases may affect the nervous system or cause temporary memory loss — a major effect of environmental hazards at home.

Mold can be expensive and difficult to remove. Moist spaces like basements and crawlspaces or bathrooms and kitchens are likely spots. Homeowners can hire a trained professional to test for mold or use a do-it-yourself kit from the hardware store. People with mold-related illnesses usually get better when they spend time in a clean environment. 

Lead Paint

The federal government banned lead-containing paint in 1978 and now requires sellers to disclose its presence in homes built before then. It is most dangerous when it is flaking or chipping from the old surface but doesn’t pose a serious risk when it is in good condition. Because sanding creates dust and airborne particles, it should always be removed by stripping.  Homes built before 1982 also have lead pipes, and replacement can cost $5,000 or more.

Reactions to the paint, usually from swallowing, are usually mild but can cause learning disabilities or behavioral problems in children. At higher levels or over long periods of time, lead can cause brain damage in children. It can also contribute to kidney and nervous system conditions in children and adults. 

Radon

This natural gas rises from the ground through cracks or holes in the foundation of buildings. Linked to cancer in both smokers and non-smokers, it is the leading cause of lung cancer in people who don’t smoke. It causes around 21,000 deaths every year, and researchers say children may be more susceptible than adults.

The federal government recommends specific levels, but regulations differ in each state. Specialists recommend keeping levels as close as possible to zero as possible and checking every two to three years to make sure it stays that way. An interactive map shows potential levels in each state. 

The responsibility of managing environmental issues falls under the jurisdiction of the Environmental Protection Agency (EPA), an organization that has undergone significant changes since 2016. Besides providing resources and administering safety laws, the EPA monitors substances that make private residences or public buildings unsafe. Their website has resources on everything from safe drinking water to disposal of hazardous waste, and it includes detailed guides for dealing with common dangers.

Home inspectors look at age, location and type of construction when they examine a home for environmental hazards. A good inspection can make a home safer and prevent expensive surprises in the future. The American Society of Home Inspectors and The International Society of Certified Home Inspectors license inspectors and provide registries of qualified professionals.

millennial homeowners and mortgage

Key Trends for Millennial Homeowners (2019 Update)

1000 500 Taylor Witt

Gone are the days when we thought Millennials don’t have plans to buy homes. Surprisingly, they are no longer babies and they want to become millennial homeowners.

The major problem now is that they have been stumping real estate experts because of their home buying patterns and choices. Obtaining a mortgage is certainly a top priority for nearly all owners, especially millennial homeowners, but there is so much more. Some are even looking at contract for deed options, but there are a ton of ways to get the job done.

This article explains who Millennials are, what they will like to have in their homes, and why real estate experts are finding it difficult to satisfy their wants.

Who are Millennials?

Millennials, also referred to as Generation Y, are comprised of people born between the years of 1980 and 1995. They happen to be the largest generation in history and research has shown that they are very specific, regularly use technology, are highly educated, have self-confidence, and connect socially.

Marketers and researchers are baffled by millennials because while some embrace traditionalism, many ignore it. Millennials are now adults and they want homes.

Things to know about millennials:

The first place millennials check is the internet

You shouldn’t be surprised to see this because it has been stated earlier that technology plays a major role in a millennials’ life. The first thing millennials do is check online home listings. 50% continue the home purchase process through the internet.

Millennials control the market, statistically

They might be the youngest adults but they are the most influential home buyers. They are currently the largest group of homebuyers and more than half of them that have yet to buy a home have expressed their desire to do so in the near future.

A millennials’ view about owning a home is different

It’s an undisputed fact that millennials want different things in a home. But aside that, they view home ownership from a different perspective compared to the Baby Boomer and Generation X. The preceding generations see owning a home as a status symbol and as a long term investment. Generation Y sees it as a necessary rite of passage. They are more concerned about the security and independence that comes with owning a home. They can move from home soon because of their job flexibility.

Millennials look for different things in a home

When they are ready to spend on a home, they are more concerned about convenience, affordability, and comfort. The proximity to their workplace is also critical. Being cognizant of convenience and affordability allows millennials to save and make sacrifices to ensure they pay their mortgage.

What do millennial homeowners want in a home?

Selling to prospective millennial homeowners isn’t as easy as you may like it due to their preferences. However, here are the features a home for a millennial home buyer must have:

Home office space:

The rate at which people work from home is growing drastically and it keeps growing. This makes the home office an important factor that most millennial home buyers consider before buying a home.

Low maintenance features

Millennials are one of the busiest generations (they don’t have time to carry out the maintenance chores). They will prefer homes that require low upkeep and maintenance.  

Energy Efficient

Homes that are energy efficient (e.g. a home with solar panels) will help millennial buyers kill two birds with one stone. They spend less and they also keep the environment clean and safe.

Online presence

As stated earlier in the introductory part of the article, millennial buyers are researchers and constantly use the internet. Millennials will always prefer properties found online. This is why it is important that real estate experts set up real estate websites with excellent photos and virtual tours of the property.

Updated Kitchen and bathroom

Millennials always want an updated kitchen and bathrooms in homes because they may not want to spend extra cash or deal with the hassle of construction. They are budget conscious and will prefer spending their savings on a down payment or furniture.

Tips to satisfy millennials homeowners and buyers

Help them with the home buying process

Research and studies have shown that 90% of millennials work with a real estate agent and lay emphasis on the fact that they always want help during the process.

To satisfy future millennial homeowners, ensure you guide them through the home buying process.

Make your competitive advantage specific

Every real estate agent has something unique to offer and millennials know this. To stand out among other agents, ensure you state why you are unique.

Price matters

Majority of millennials pay the down payment from their savings (this shows their limitation in financial options). You can help by offering professional advice on how they can save or use their savings in the best way during the process of buying a home.

Tips you can give future millennial homeowners

It’s advisable to pay student loans and other debts before thinking of buying a home

Paying a student loan is one of the biggest challenges facing millennials. However, buying a home is probably the most expensive purchase they will make, which makes it better to pay off debts before taking the challenge of buying a home.

Pay the down payment from your savings

Most millennials buy homes with a mortgage, that’s why having a strong down payment is critical to secure a low-interest rate and pay off the mortgage faster.

Buy what you can afford

The folks at Streamline Mortgage Solutions have created an engaging infographic, showing you the 8 top mortgage trends for millennial homebuyers. Take a look!

The values of homes keep rising and paying such a high price is frustrating. Millennials are also at a high risk of depression and addiction. So, the best advice for millennials is to be patient. Don’t be tempted to pay for a home that’s not within your price range. And when moving, know your budget as well!

millennial homeowners
Millennial Homeowners: Who Are They?


Building Your Credit Score in 2019

No Credit? No Problem! How To Build Your Credit from Scratch

1000 500 Taylor Witt

So, you are ready to take a step into adulthood and start establishing your credit. So, you start by searching “how to build your credit score fast.”

It is often said that it’s better to have bad credit than no credit but don’t let that scare you if you have not established any credit history yet. This is good news — according to a Dallas credit repair company:

“It is actually easier to start from nothing than to reverse a bad credit score.”

How to Build Your Credit Score: Getting Started

If you are ready to enter into the rich American tradition of credit debt then the first thing you should do just to be safe is to confirm that you indeed, have no credit. Things like a gym membership or an academic loan can actually establish some credit for you even if you were unaware of it.

how to build your credit score

Check to see if you have any credit by requesting a credit report from any of the three main credit reporting entities Equifax, TransUnion or Experian. The law stipulates that you can request one free report from any or all of these credit recording bureaus once a year.

If it turns out that you really do have no credit, don’t panic. There are simple ways to establish some. You just have to be a bit patient.

Gas Card First to Build Your Credit Score?

Applying for a gas card is a great way to build some starter credit because there is very little chance of abuse as it can only be used for fuel purchases, it is for something that you would probably buy anyway, it is easy to keep track of and the credit requirements are usually very low for one.

build your credit score with a gas credit card

Most major gas stations offer gas credit cards with bonuses as well. Just make sure you pay on time and you should start to build credit within 6 months.

What About Co-Signing to Build Your Credit Score?

Another good way for a beginner to build some credit is by getting a co-signer. We know buying a house with bad credit is tough, but its good to know that most unsecured credit cards are out of reach to people with no credit because the issuing bank or credit company needs to know that you will be able to pay the money you use on credit back. This is why having a history of credit is important. It tells issuers that you can (or can’t in cases of bad credit) be trusted to pay back what you borrow.

If you have zero credit, try to get a co-signer to help you apply and get approved for an unsecured credit card. You should be aware that the co-signer will be responsible for delinquent payments and anything you don’t pay back.

Secured Credit Lines

This is probably the safest method if you are just starting out on your credit journey because it is essentially fool-proof. The way a secured credit line works is that you pay a certain amount of money up-front. Think of it kind of like a gift card that you feed money into and can use at certain places. The difference though is that this will actually contribute towards your credit history.

Secured credit loans may not require money up-front if you go through a bank that you already have an account with because some banks use the money you have in their account as collateral. The interest rates tend to be a little high with secured credit cards but the good thing about them is that you have the option of creating a credit limit that you can afford.

Become an Authorized User to Build Your Credit Score

This option can get a little dicey but if you come to a solid agreement with the person you are doing it with and are responsible, it is another good way to start constructing your credit.

Basically, this method entails you becoming authorized to use a parent’s, spouse’s, sibling’s or friend’s credit card – it can be anyone who agrees. They are responsible for payments as the main user on the account, but you can use it and make payments as well.

Since your name will be officially added to the credit account, the card issuer will report your activity to the credit bureaus. The only caveat is that you should make doubly sure that the issuer does in fact report authorized user activity and not just the main account holder’s activity.

Apply for a Store Credit Card

If you have no credit you may have a stack of rejected applications from banks who don’t want to take you on because of your lack of a credit presence. But do you know who might not reject you? Retail stores.

Department stores, hardware stores, electronics retailers and pretty much any kind of store may offer lines of credit with very few requirements. Many people have started their credit history this way because these are not banks. These are private companies that tend to set the bar lower for approval.

Of course, any credit card you get from a store can only be used at that store, but if you get one from a place you actually shop at, it can be a good start for you.

Try Your Bank

Do you have a checking account? If so, then you can probably get approved for an unsecured line of credit through the bank that you already have an account with. They tend to be more lenient about credit card approval if you already have a checking account with them.

Please, Be Careful

All of these are good ways to start your credit up, but there are also avenues that you should probably avoid. For instance, many car dealerships will offer to finance you even if you have no credit. While getting financed for a car will help build some credit, these loans often come with ridiculously high interest rates, and missing one payment will result in a default and harm your credit score. Resulting in you trying to rebuild your credit score all over again.

Taking out a small loan from a bank can be dangerous too, even if it does build credit because the interest tends to be high and there is usually a minimum amount of a few thousand dollars.

So, however you decide to navigate the choppy seas of credit, the most important thing is to be responsible. Be careful with loans and financing and even with the preferred methods listed above, because one false move can leave you reeling for years.

Contract for Deed

[2019 UPDATES] Contract For Deed: The Ultimate Guide

1000 500 Sam Radbil

Contract for Deed Home Financing in 2019

Contract for deed home financing is a great option for those individuals struggling to get a traditional loan from the bank. Now, let’s get into the details.

Conventional financing, in 2019, as we all know, is the preferred home loan vehicle. This refers to a standard mortgage loan from a licensed lending institution, and typically can be a15 or 30 year loan with a down-payment that ranges from 3 percent to 20 percent. The higher your credit score, the better deal you will get.

Even before you find your dream home, you should obtain mortgage pre-approval from your lending institution. While pre-approval does not guarantee that everything will go smoothly, it does provide you with significant negotiating power when dealing with sellers.

Applying For Conventional Financing

Your parents probably had to spend an afternoon at a banker’s office when they applied for their first home loan. Now, you can do this by phone or online, although you will eventually have to sign closing documents in person. Some important things to do and factors to be aware of are:

  • Know your credit score.
  • You can easily see this number at Credit Karma, and the service is free.
  • Determine what factors make you less attractive.
  • High student loan balances, maxed out credit cards, judgments, liens, unpaid taxes and underreported income can hurt you.
  • Analyze your actual credit report and correct errors. The FTC reports that one of every five credit reports contains inaccuracies.
  • Optimize your credit status by paying down card balances to below 30 percent; do not make any large credit purchases while attempting to secure home financing.

Understanding What You Can Afford

Banks have certain debt to income ratios that they do strictly enforce. The Consumer Financial Protection Bureau (CFPB) explains:

“Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income.  This number is one way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed.”

To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out.  For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2000. ($1500 + $100 + $400 = $2,000.) If your gross monthly income is $6000, then your debt-to-income ratio is 33 percent. ($2000 is 33% of $6000.)

Evidence from studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43 percent debt-to-income ratio is important because, in most cases, that is the highest ratio a borrower can have and still get a qualified mortgage.

Housing Affordability

Finding Your Home

You can spend all day trolling Trulia and Redfin, but many times you can be missing out on homes for sale that only Realtors can easily access. Remember, sellers pay real estate commissions—you don’t—so avail yourself of this free service and find a good Realtor.

Finding Your Home With Contract For Deed

Working With A Contract for Deed Realtor

The Realtor/client relationship is a two-way street. If you are a type A personality and want all of your texts answered within two minutes, make sure your Realtor is as hyper as you are. Conversely, don’t expect your Realtor to work miracles with incomplete or false information. For example, don’t inflate your income and/or minimize your debts at your first meeting. In the credit world, there are no secrets, so be upfront with you Realtor.

Turned Down For Traditional Financing?

Mortgage Rejection

Those that give up after being rejected for a home loan end up renting apartments while those savvy enough to understand that there are alternatives to conventional financing will look at the rejection as a bump in the road and move forward. Rent to own is one way to become a homeowner, but a preferred method is MN contract for deed. In a rent to own situation, you pay rent to a property owner that may put aside a portion of your monthly rent as a down payment for a future purchase.

If everything works out, either the seller provides financing or you obtain it at some later date. In a contract for deed sale, you sign a contract that states that you will be given the deed to the property you are occupying after you make all of your required payments. Contract for deed is seller financing, and while interest rates can be a bit higher than conventional financing, credit requirements are typically significantly more lenient.

Finding Contract For Deed Opportunities

There are a limited number of MLS contract for deed listings.  If you’re lucky, you might find the right opportunity in a nice location. At C4D, however, we give you an advantage that others that wish to utilize contract for deed just don’t have. Just bring the home you wish to purchase to us. If we can do the deal, we will purchase the home and sell it to you on a contract for deed basis. We have paved the home ownership road for many that were rejected for conventional financing. Application is easy—just go to our website. C4D has the financial power behind them to make these deals happen.

Contract For Deed Documentation

While C4D offers less stringent credit requirements, we still will need pay stubs and bank statements. We look, however, at your situation today, and we care a lot more about what you can do now than what bad things have happened to you in the past. At C4D even high student loan balances and recent bankruptcies are not necessarily the hindrances they would be at a large bank.

Contract For Deed: How It Works

Although the nightmare of waiting 60 days or more to close on even great credit deals is generally behind us, banks take longer than we do at C4D. We usually can close deals in as fast as two to three weeks.

MN Contract For Deed Costs

We’re upfront about all of this. We do require an origination fee and we do add a small initial property markup. And, the interest rate you pay will be higher than the prevailing conventional mortgage interest rate.

Contract for Deed: What Problems?

We have many satisfied former renters that are now homeowners. We are transparent and forthright. If we can help you, we do everything possible to get your deal done. We are MN contract for deed experts, and happy customers are our paramount concern.

If you deal with an individual that is offering a contract for deed, you have to do serious vetting to ensure that there will be no problems with your deal in the future. With C4D, this is not necessary.

Contract for Deed: True Disclosure

When we purchase your home, we get a loan from our bank. With the blessing and full knowledge of our bank, we then sell the property to you with a MN contract for deed. You make your monthly payments to us and we, in turn, make our payment to the bank. But check this out:

We’ve never missed a payment and don’t ever plan on it.  In addition, we’ve worked with our bank partner to have an assignment of contract included in your documents that basically says if we stop paying our lender, you can pay them directly and your contract remains intact.

You won’t find this protection with most individual contract for deed sales. In fact, many times the seller’s bank isn’t even made aware of the transaction, and this can throw the original mortgage into default because of the due on sale clause that is embedded in almost every mortgage note. Our agreements with our bank do not have due on sale clauses.

Everything is upfront and at closing the contract is recorded at the appropriate County.

Helping You Refinance

Our goal is to get you into a home and ultimately help you refinance with a traditional lender.  We have relationships and systems in place to help make this happen. Typically, we can help people refinance within three years of purchase.

For the Realtor: Turned Down? There Is Still Hope!

So you spent weeks trying to get your buyer and seller agree upon a price. Both were difficult at times, and when you finally got all sides to listen to reason, an old unpaid judgment appeared and derailed the financing. After you’re done binge watching House of Cards to ease your pain, give us a call. We have been able to resurrect many deals that have been turned down by others.

Realtor Contract for Deed

We are a reputable, experienced and recognized company that does MN contract for deed. You bring us the buyer and the property, we buy the property and sell it to your client on a contract for deed. Even if you have an iffy buyer with shaky credit and you have not yet found the perfect property, bring them to us; we will get many of them pre-approved and send them back to you.

Is My Commission Protected?

Realtor Commission

You betcha! 80% of our referrals come from realtors, and they wouldn’t keep coming back if we didn’t guarantee that their commissions would be protected.

The Deed

Contract for deed means exactly that.

  • We buy the property.
  • We hold the deed.
  • We sell the property to the buyer.
  • They occupy the home.
  • They make their monthly payments.
  • At the end of the contract period, we turn over the deed and they are homeowners!
  • They can also refinance early with a traditional lender, and this is something that we will facilitate.
  • In addition, the buyer actually has equitable title, and can sell the property at any time if they wish to move on.

What About Financing?

Yes, we use a bank.

  • Our bank gives us a mortgage.
  • Our bank knows what we are doing.
  • The buyer pays us and we pay the bank.
  • We are never late.
  • We never miss payments.
  • Our mortgage with our bank does NOT include a due on sale clause.
  • In fact, we have an assignment of contract put in place that basically says if we stop paying our lender, the buyer can pay them directly and the contract remains intact!

The Final Paperwork

We will hold your client’s hand from application to closing. We will assist with all documentation and paperwork.

When The Offer Is Accepted

At this point, Taylor and the C4D Crew take over.  We work directly with the lender and title company to schedule closing and work out all the paperwork.  The C4D Crew will also work directly with the C4D buyer on all the paperwork and logistics for the day of closing This will be one of the easier transactions you do this year!

Down-Payment

Contract For Deed MN Down Payment

A down-payment is of course necessary, but the down payment be gifted to the buyer in a C4D transaction. Just make sure your clients speak with their accountant for possible tax implications.

C4D Crew Reputation

We can provide you with client references. Just by looking at our website you can see that we provide tons of valuable and free information about MN contract for deed. Of course, we are in business to make money—so are you—but we are also dedicated to helping those with compromised credit become homeowners.

How Long Does It Take?

From the time you and your client find a home they’d like to buy, and an offer is accepted, we can close as quickly as two to three weeks.

Credit Score Minimum?

We don’t have one. We look at every deal individually. Prior BKs, student loans, judgments divorces and tax liens are all issues we can work around.

Credit Score

Can You Approve Any Deal?

In short, no. We are not going to lie and tell you that we can do anything, but you would be amazed at what we can accomplish.

Call Us About Contract For Deed

MN Contract For Deed

Again, just because the loan officer rejected your client’s loan, your deal is not necessarily dead. Contact us and we’ll quickly get started on a contract for deed program that can make your client’s home ownership dream a reality.

no money down mortgage home ownership

How to Buy a House with No Money Down

1000 500 Sam Radbil

Bad or damaged credit is a big reason people have trouble financing a house, but another common problem for homebuyers is the down payment. In simpler times, you went to high school and maybe attended college, or you joined the military or got a factory job. When you settled into a job, you usually stayed there for a long time. Detroit auto workers, for example, might have entered the plant at age 18 and retired 30 or more years later—only working for one employer. In the beginning you would scrimp and save for a down payment since a no money down mortgage was hard to find, and when you accumulated enough, you found a house, got a solid 30 year mortgage and made your payments diligently for 30 years.

When you settled into a job, you usually stayed there for a long time. Detroit auto workers, for example, might have entered the plant at age 18 and retired 30 or more years later—only working for one employer. In the beginning you would scrimp and save for a down payment since a no money down mortgage was hard to find, and when you accumulated enough, you found a house, got a solid 30 year mortgage and made your payments diligently for 30 years.

After that, you would be able to retire yourself, retire your mortgage, live off of your pension proceeds and look forward to collecting social security. That was the blueprint that many of our parents followed to the letter.

No Money Down Mortgage

Now, however, things move faster, jobs just don’t last 30 years, and you may not be willing to wait until you have saved up enough funds for a down payment on your first home. Is there a way to buy houses today and get a no money down mortgage? Can programs like contract for deed work for you?

Legitimate No Money Down Mortgages

The best no-money down program is offered by the VA. Of course, you need to be a service veteran, but if you are, you can get a no money down mortgage even if you have a poor credit score. The U.S. Department of Agriculture also has programs for no money down mortgages if you are thinking of buying a rural home. Certain institutions like Navy Federal Credit Union also have low or no down payment programs for specific borrowers. The Federal Housing Administration (FHA) offers a great low down-payment program and there are down payment assistance programs available in many states including Minnesota. The short answer then, is yes, there are ways to but homes without accumulating a down payment.

Not for Everyone

One problem can be that you just don’t qualify for any one of these programs. If you’re not a veteran, if you have seriously injured credit, if you have just declared bankruptcy or even if you have an overload of student loans, a no money down mortgage may be out of reach. If this is the case, what do you do next?

What About a Gift?

Another person can just give you the down payment necessary for you home. This can be a friend or a relative, and the federal gift tax regulations may not even apply unless the gift to you is over $15,000. Even if your rich uncle gives both you and your spouse $15,000 each, it’s not taxable.  Of course, you’ll need to find your benefactor, and that will be up to you.

Homebuying Gift

Minnesota Specifics

When you get a Minnesota Housing mortgage, you can also receive an optional down payment and closing cost loan up to $15,000.

MN Homeownership

Down payment and closing cost loans are only available when you get a Minnesota Housing first mortgage loan and additional eligibility requirements may apply, including income limits. Contact an approved lender partner to get started.

Monthly Payment Loan

The Monthly Payment Loan can be used with the Start Up or Step Up program.

  • Loans up to $15,000
  • Interest rate is equal to your first mortgage rate
  • Monthly payments over a 10-year loan term

Yes, again there are rules and regulations, and as liberal as they are, maybe you just can’t qualify because:

  • You just declared bankruptcy.
  • Your credit score is really low.
  • You own a business and don’t show enough income.
  • You maxed out 20 credit cards.
  • You suffered a home foreclosure.
  • You just lost your job.
  • You recently were released form incarceration.
  • You have a large student loan balance.
  • Your business failed.
  • You owe delinquent taxes.
  • You have numerous filed judgments against you.

If you have even one of these issues, it can ruin your chances for not only getting a no money down mortgage, but for getting any type of home financing.

Contract for Deed Helps with No Money Down Mortgage Programs

This is where contract for deed MN information can help. While some states like Texas frown on the contract for deed process, Minnesota has embraced it, and it works this this:

You find a house that you like and you negotiate a price with the owner. You bring the deal to a reputable contract for deed company like C4D, and they purchase the home. C4D now owns the home but they agree to sell it to you on a contract for deed basis. This means that you make monthly payments to C4D, you pay for repairs and property taxes, you make repairs, and after you have made all of your payments you are presented with the deed and you own your home.

It is of course possible for you to pay off your loan early if, for example, you are lucky enough to inherit money, or if your credit has improved enough for a traditional refinance.

How Can C4D Do It When Others Can’t?

C4D looks at your entire financial picture and can more easily look past credit issues than banks can. If you are a good person with unfortunately bad credit, C4D can many times help you get into the house you want. Yes, your interest rate may be higher, and you may have to pay a fee, but contract for deed is a recognized and established way to become a Minnesota home owner.

C4D, in some cases, can also provide down payment assistance that can eliminate the need for a big chunk of money down. And C4D usually has no problem with gifted down payments, and any good contract for deed company will work with you to find the best available government down payment assistance programs.

The Answer for the No Money Down Mortgage

Yes, there are a number of ways to buy a home with no money down. And while traditional bank mortgages are preferable, if you are having difficulties be sure to investigate what contract for deed can do for you.

Moving on a Budget

New Homeowners: 7 Tips to Save Money on Your Move

1000 500 Sam Radbil

While settling into a new contract for deed home can be very exciting, it seems that the moving on a budget part is often a stressful experience. Aside from the stress of the actual move, switching up your location can be hard on the wallet too, especially for new homeowners. Financial stress can wreak havoc on your move, so here are seven tips stay within your budget and even well below it!

#1: Move During the Off Season

If you want to use a moving company, they will be the busiest during the spring or summer months, particularly on the weekends at the beginning and end of each month. Making some changes to switch to a less popular date or time could save you a substantial amount when moving on a budget.

#2: Check the Cost of Shipping Your Stuff

Depending on the number of boxes you have and how far they must travel, using snail mail might be more cost-effective than hiring a mover. Do your research to find out what will work best for you and your stuff, which could even end up being a hybrid of a few options such as hiring movers, shipping, renting a truck, or just moving it yourself.

If you’re flying, you might consider taking a peak at the best checked luggage options, to make an educated decision.

#3: Eliminate the Stuff You Don’t Need

The less stuff you have, the easier your move will be. With that in mind, take stock of all your belongings before you pack them up. Ask yourself, do I really need this? If not, you can donate it to your local thrift store, or even host a garage sale if you have enough items to sell. You will thank yourself later when you have to unpack fewer boxes at your new place!

#4: Find Free Boxes

There are so many free cardboard boxes out there; you just need to know where to find them. Rather than purchase new moving boxes, going around to retail stores, schools, offices or even liquor stores to gather boxes will save you a lot of money. Many of those businesses will be happy to give away boxes, as they were going to be broken down and recycled anyway.

#5: Throw a Packing Party

Moving is inherently stressful, but there’s nothing that cures stress like letting loose and having a party! Infusing boring activities with excitement will make your moving experience far more enjoyable. Making some of your favorite snacks, curating the perfect playlist, inviting your best friends over and ensuring there is an enticing reward at the end will turn a seemingly boring chore into a fun-filled day. It can also be a great time to reminisce and say goodbye to the space you’re moving out of, giving closure to those cherished memories.

#6: Use Packing Materials from Around the House

Like buying boxes, buying bubble wrap or packing peanuts is a waste of money (and terrible for the environment too). Instead, use items you already have around the house to protect fragile things. Stuff like magazines, newspapers, blankets or even towels can pull double duty by both protecting your fragile items and saving space by not requiring more boxes to transport themselves. Increasing efficiency is how you decrease cost, so it’s essential to look around your house before pulling out your credit card.

#7: Moving on a Budget by Yourself

Hiring a moving company comes along with a certain peace of mind, but most moves can be easily accomplished without professional help. Call in a few favors from your friends and make a day out of it! Remember, buying a meal for everyone at the end of the day will be much cheaper than renting a truck or employing an entire moving crew.

Final Thoughts

Another option to consider is buying a home that is already furnished, which significantly cuts down on the amount of stuff you need to move.  Especially if you are purchasing a vacation home, it is more convenient to purchase fully-furnished. Fractional homes are a great vacation home ownership option that typically come decked out in top notch interior design.

Keeping these tips in mind will certainly help relieve some of the financial stress of moving, but it is important, no matter where or how you’re moving, to make as detailed a plan as possible. Being organized can help decrease stress and make for a happy transition into an exciting new place!