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Contract for Deed

[2019 UPDATES] Contract For Deed: The Ultimate Guide

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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!


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.

Home Safety

The Importance of Home Safety When Buying a House

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You’d never judge a book by it’s cover, yet you’re quick to judge a neighborhood by appearances. Looks can be deceiving, and that’s why it’s essential you consider home safety when buying a house. No matter how safe a neighborhood looks, criminal activity still happens.

In fact, many criminals target these safe-looking neighborhoods because they’re more likely to be relaxed when it comes to their own security. In this guide, we’ll help you determine if the neighborhood where you’re buying a home is actually safe, as well as the best ways to protect yourself in your home.

High Angle Shot of Suburban Neighborhood

Image via Pexels

1. Check Local Crime Mappers

Your first line of defence should be to check local crime mapping services. These websites, such as CrimeReports and SpotCrime, are a great way to check out local crime information. It’s as simple as typing in your address or your prospective address, and you’ll see the recent crimes that have been happening in the neighborhood.

You can compare how your neighborhood stacks up against other ones locally, and that will help you understand if this is actually a safe place to live. However, realize that these websites don’t paint a full picture. Any crime should be a red flag, but don’t make any assumptions just based on this.

2. Talk to the Owners about Home Safety

Another way to get a feel for the area is to simple talk to the previous or current owner. When you’re buying a home, you want to get as full of a picture as possible about the neighborhood. The owner will know more about whether the area is safe, and they might be able to provide more specific insight than an online platform.

3. Talk to Neighbors

Of course, many first-time owners or sellers might not be super upfront about the reality of living in that community. This makes sense. They’re trying to quickly sell their home, after all. Instead, connect with people who currently live in the area. This might mean talking to neighbors face-to-face, attending local events, or even just posting on a local website or online group.

Cherry Blossom Tree

Image via Pexels

4. Explore the Area

Another great option is to simply explore the area for yourself to learn more about home safety. You can get a great feel for a neighborhood by checking it out during different times of day. For instance, many places feel different during the day than they do when the sun goes down.

There are many signs of a safe and secure community. Local events, children playing outside, and popular local businesses are all signs that this is a safe place to live with your family.

5. Install an Alarm

Finally, no matter how safe the neighborhood is and how much you pay attention to home safety, it’s always a smart idea to take precautions for yourself. By installing a security system like one by Adler, you take matters into your own hands even when you’re not physically at home.  An alarm system will help you feel safe 24/7, and here’s why. It’s simply a way to keep your home from becoming an easy target, and it gives you a direct line of communication to local authorities.

Stay Safe in Your New Home

Congrats on your new home and new knowledge on home safety! Now take these steps above to ensure this is the right place for you, and to make sure you’re not painting yourself as a target for intruders. No matter how safe a neighborhood looks, it’s always best to educate yourself about the local crime.

These steps will ensure you’re safe in your home not just today but also for years to come. A little bit of preventative measures will go a long way.

Fiberglass Roofing

The Benefits of Fiberglass Roofing for Your Garage

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A new generation of flat roofing is taking over the property market and it goes above and beyond anything else that has come before it. Fiberglass roofing exceeds all the benefits of previous roofing materials; it is the answer to leaking felt roofs, it is the permanent solution to your flat roofing problem, and it even allows for easy installation. For many of you who do non-stop home repairs after you purchase your first home on contract for deed, this concept might be extremely useful.

If you’ve never heard of fiberglass roofing, or (even worse) you’ve heard of it but never considered it for your garage, why not? This roofing system has been rapidly growing in popularity all over the country and it’s not hard to see why. In this article we’re going to be looking at what a fiberglass roof is and why you need one.

A Few Facts About Fiberglass Roofing

fiberglass roofing is the next best thing, it’s cool, it’s in, and there are so many reasons homeowners love it! But what exactly is fiberglass roofing? Well,fiberglass roofing is a lightweight but strong material that is resistant to the weather, temperature changes, corrosion, and damage. Not only can fiberglass roofing be easily moulded to suit any roof shape, but it is also extremely easy to maintain.

Where Did Fiberglass Originate from?

fiberglass was a material first used in the marine industry to build boats, but has since proved its versatility in numerous areas, including construction and flat roofing! This amazing material has benefitted the construction industry in so many ways and since it’s potential has been recognized, it has been transforming households across the country.

Quick Fiberglass Roofing Tips

Another really great thing about fiberglass roofing is that you don’t necessarily have to pay for installation costs! Instead, you can now get your very own fiberglass roofing kit and follow the fiberglass roofing process online to lay your very own garage roof. But before you make a start, here are a few quick fiberglass roofing tips:

  • Be sure to check the weather forecast before starting to lay a fiberglass roof as it is essential it is done in dry weather conditions.
  • Also, do not install your fiberglass roof when it is too cold as the resin and topcoat will not cure properly – leaving you with a badly installed roof.
  • If, while you’re installing your fiberglass roof, it starts to rain – stop straight away and cover the roof to avoid any damage.

These are just a few quick tips, but they will save you plenty of time and ensure you end up with a beautifully completed roof that looks like its been laid by a professional.

What are the Benefits?

So, you’re thinking about installing fiberglass benefits and while we’ve explained a few of the basics, why exactly do you need a fiberglass roof? What are the benefits? Well, below are some of the most popular benefits of fiberglass roofing that help explain why this product has spread so rapidly in popularity over the years.

Fiberglass Roofing is Lightweight: There is not much that is better than installing a new roof that is extremely lightweight. Many roofing materials are heavy and difficult for roofers or homeowners to carry and install. What’s more, the weight of roofing products can be a safety concern for many. So, the benefit of a lightweight roofing material like fiberglass cannot be understated.

Fiberglass Roofing is Durable: When it comes to a good roofing material, we all want something that is durable. And one of the main reasons homeowners are choosing fiberglass is because it has a reputation for strength and durability. What’s more, if you hire a professional roofer to do all the hard work for you, your roof will remain durable for many years to come.

Fiberglass Roofing has No Joints: Joints are a problem when it comes to roofing and can cause issues such as cracking, leaking, water damage restoration, and more. One of the significant benefits is that it has no joints – making it a fantastic roofing material to apply in liquid form. This allows for a seamless finish unlike any other.

Repairs are Made Easy: This roofing is fantastic for easy repairs. This material is not only versatile but it allows for repairs to be carried out easily and to a very high standard without interrupting the daily routine of your life. When it comes to roofing, what could be better than that?

Fiberglass Roofing Looks Great

Probably the main reason people purchase this roofing is that it looks fantastic. This roofing material is very aesthetically pleasing and provides your garage with a level of style other homes on your street have yet to achieve.

How Long Does Fiberglass Roofing Last?

So, the final reason you need to purchase and install this roofing on your garage is that it lasts a very long time. In fact, if professionally fitted by roofing experts, this roofing will last for at least 25 years! That’s phenomenal and certainly cuts down home maintenance costs significantly.

If you’re looking for a home to implement fiberglass roofing, but you’re struggling to find financing, then contact us today and let’s get started!

Buying A Home With Bad Credit

Client Testimonial: Carmelo Buys A Home With Bad Credit

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“My credit score was very low and I couldn’t find a single bank to help me get a loan for a new home. The C4D Crew worked with me to help me purchase my home and it was awesome!”

At the C4D Crew, our main goal is to help Minnesota homebuyers — specifically those struggling to obtain traditional financing — purchase their dream home. We’re very fortunate to have worked with some awesome clients who were finally able to become homeowners, so we wanted to share their experiences, told directly by them, with all of the future homeowners out there who might benefit from working with us.

This newest testimonial comes from Carmelo. He struggled with buying a home with bad credit for years and year and was unable to get financing from the banks in a traditional manner. That’s where we were able to help. We’re happy to say that Carmelo is truly enjoying the homeowner lifestyle! Here’s what he had to say:

Why did you choose to work with the C4D Crew?

Carmelo: My credit score was very low and I couldn’t find a single bank to help me get a loan for a new home. The C4D Crew worked with me to help me purchase my home with bad credit and it was awesome!

What financing issues did you have prior to working with the C4D Crew?

Carmelo: I had a poor credit score which was a huge roadblock in the way of getting financing from a traditional bank.

What impressed you about the C4D Crew? Did they help you overcome your financing issues?

Carmelo: These are just very nice people. It was great to work with a company who really, truly cared about the wellbeing of the customer and my family. We really had no issues when working to overcome my bad credit score to purchase a house for me and my family. There were no hiccups along the way, unlike when working to get more traditional financing.

What service did you get from the C4D Crew that you couldn’t find elsewhere?

Carmelo: I worked hard to find traditional financing in the past. The service I got from Taylor and his team and the C4D Crew was fantastic. Simply put, they helped me get the loan that I needed and they made it happen quickly. I’m grateful for this and for my new home. And the process was very clear to understand!

Would you recommend The C4D Crew to your family and friends?

Carmelo: Absolutely yes. Without a doubt. Taylor and his team are going to do exactly as they say. They’re going to help you a lot.

For more information on working with the C4D Crew to finance your next home in Minnesota, contact us any time and we’ll get in touch with next steps!