If you’ve only ever purchased a home using a traditional mortgage, the contract for deed process may seem confusing or intimidating. But we’ll let you in on a secret: it’s essentially the same process you’d follow if you were buying with a mortgage!
Our Contract for Deed Process
- Get pre-qualified: Prospective CD homebuyers must meet a few basic criteria regarding down payment, debt-to-income ratio, and more. Learn more here.
- Get pre-approved: Gather and submit all necessary documentation regarding assets, down payment, income, employment and more. Once documents are uploaded, your review can be completed within 24 hours.
- Find a house: With the help of your Realtor, find a home that fits your budget and meets your needs.
- Make the down payment: When the home is under contract, you will make a down payment to the title company.
- Inspections: Slow Flip does not require home inspections unless there are known issues with the home. If a buyer wants an inspection performed, it is their responsibility to coordinate it.
- Appraisal, title, and insurance: Slow Flip usually has an appraisal performed, but the buyer is not required to seek an appraisal. We will work to acquire the title through our title company, but the buyer must choose their own insurance provider.
- Closing: You will make any necessary payments, including the realty administrative fee, property taxes and interest through the end of the month, applicable association dues, and others as needed.
- Move into YOUR home! Begin to work toward adjusting your credit and finances to meet mortgage qualification requirements.
- Convert the CD into a mortgage: Within five years, pay off the contract for deed. This is usually done by converting it into a mortgage.
We’re Here to Help
If you have questions about any part of the Slow Flip contract for deed process, give us a call at (952) 417-0000 or contact your Realtor.
The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible. The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.
Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us today.