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Alternative Homeownership Program

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What Homebuyers Want in New Homes in 2022

When the pandemic began, many of our day-to-day activities – from work to school to socializing to exercising – were abruptly moved home. At the start, we made do with what we had, setting up laptops on the kitchen table and doing yoga in the guest room. Nearly two years later, things are different, and homebuyers want dedicated spaces for all their at-home activities.

According to realtor.com, there are a few common items that buyers have on their “must-have” lists. (If you or a client finds a home that checks every box, but cost or credit is a concern, call Slow Flip to discuss our contract for deed option!)

What Homebuyers Want in 2022

what homebuyers want in 2022
photo credit: @ketut-subiyanto accessed 2/5/22 via CC0

Dedicated Office Spaces

As more companies announce permanent work-from-home or hybrid policies, employees are thinking long-term. A dedicated office space improves productivity, and allows you to close the door on work when the day is through.

Closed Floor Plans

Open floor plans are great – until everyone in your family is at home, trying to work or learn or exercise or sleep or play at the same time. Facing the reality that we’ll all be home together more often, today’s homebuyers want more walls.

Outdoor Living Spaces

If you’re always home, where do you go to escape and unwind? The backyard! Homebuyers want a comfortable, luxurious and functional outdoor space to cook, gather, and relax. In addition, more people have turned to gardening, and want enough space to plant.

Functional Kitchens

After cooking every meal, making every snack, and mixing every drink of the past two years, homebuyers want a kitchen that functions exactly as they need it to.

Home Gyms and Wellness Spaces

Gyms have reopened, but many people have grown accustomed to the privacy and convenience of exercising at home. A dedicated workout or wellness space is on the top of many homebuyers’ lists.

How can Slow Flip help you get into a house that meets all your needs in 2022? Contact us to get started today!

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 at 952-417-0000 today.

How to Qualify for a Contract for Deed

If you’ve even considered a new home in the past two years, you know how tough the Minneapolis-St. Paul real estate market has been. Inventory is low, prices are up, and lenders are tightening mortgage restrictions even further amidst pandemic and economic uncertainty. If you’ve been unable to get into a home, consider a contract for deed (CD). It may be easier to qualify for CD, among other benefits.

Income Sources to Qualify for a Contract for Deed

Below are the income sources we use to determine whether a potential homebuyer qualifies for a Slow Flip contract for deed. Is your income source not on the list? Contact us to discuss your options!

qualify
photo credit: @tirachard-kumtanom-112571 accessed 2/3/22 via CC0
  • Self-employment: Mortgage guidelines require two years of self-employment income. Slow Flip requires some proof of income – usually one year – but doesn’t require an extensive history.
  • Ongoing part-time income: Mortgage lenders require two years, but we don’t need that much time.
  • Upcoming income: If you’re starting a new job in the near future, or graduating from college with a path toward an income and a career, that is taken into consideration for a CD.
  • Household income: Often, spouses aren’t on the mortgage for credit reasons, which means that their income isn’t considered for mortgage qualification purposes. We can take the spouse’s income into consideration, knowing that the credit will likely improve over time. This will the spouse to be on the loan when it converts to a mortgage within 5 years.
  • Bank deposit statements: We will look at both business and personal deposits from bank statements over the last six, 12 or 24 months.

If mortgage restrictions have made it difficult to get into a new home, a contract for deed may be a good option! Contact Chad to learn if you qualify.

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 at 952-417-0000 today.

This is an updated blog post that was originally published in 2020.

3 Common Mortgage Myths

Things change quickly these days – including the real estate market. This fast pace can make it difficult for even seasoned realtors to keep up. To help you deliver the most up-to-date information to your clients, we’re taking a look at three common mortgage myths.

Common Mortgage Myths That Realtors Should Know

mortgage myths
photo credit: @geralt-9301 accessed 12/29/21 via CC0

Myth #1: It’s easy to get a mortgage

Currently, the real estate market is experiencing two compounding factors. First, low interest rates have increased the number of people trying to buy homes or refinance their existing mortgages. That has caused mortgage lenders to tighten restrictions even further. Even if a buyer can get a loan, the process may take longer.

Second, the economy continues to be incredibly uncertain, and lenders are being more cautious. As a result, fewer prospective borrowers are being approved for mortgages. (If your client is in this situation, consider the Slow Flip contract for deed!)

Myth #2: All buyers qualify for low interest rates

With record-low interest rates, buyers are chomping at the bit to secure a mortgage. However, only borrowers with good credit scores (generally, 620 or higher) will qualify for those low rates. Other factors include the down payment size, the type of loan, type of home, and more.

Myth #3: Buyers can apply for a mortgage after finding a home

Now more than ever, prospective buyers should know their mortgage options before they begin looking for a home. Whether that’s a mortgage, contract for deed, or other financing solution, being prepared will help homebuyers make more competitive offers.

Understanding mortgage myths and facts will better prepare you to represent your client’s best needs. If your buyer is having trouble securing a mortgage, a Slow Flip contract for deed might be a good solution. Contact us to learn more about our Minneapolis contract for deed process.

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 at 952-417-0000 today.

A Homebuying Guide for the Freelance Worker

In recent years, an increasing number of American workers have made the switch from full-time employment to a contract or freelance worker. The pandemic accelerated this trend, as workers sought more flexible positions that would allow them to care for children or work from home.

Freelancing has many benefits. However, in a financial system that is still very much built on traditional employment, it can make certain things more difficult – like qualifying for a mortgage. Unfortunately, the pandemic has accelerated this trend as well. If you’re a freelance worker, you will likely have to provide even more proof of income before being considered for a mortgage.

freelance worker
photo credit: @vlada-karpovich accessed 12/14/21 via CC0

Buying a Home as a Freelance Worker

The regulations imposed after the 2009 housing market crash, while important and necessary, have made it more difficult for people who are self-employed. Often, self-employed workers shore up their income through tax deductions. This amounts to a higher net income. But it’s not as easy to provide proof of that income, and it appears less stable to a mortgage company.

Before lending to a freelance worker or contractor, banks usually require two years of tax returns and some proof that they’re still “in business”. You may also have to provide a profit and loss statement.

Read: The Slow Flip CD Gives Homebuyers More Options

This is all doable if you’ve been in a stable freelance or contract job for at least two years. But that’s not always possible, especially if you’re new to the gig economy – as so many people are right now.

Further, the pandemic has caused a great deal of economic upheaval. Banks are now being extra careful when approving mortgages. Freelance workers will need to provide even more documentation. This takes time. In a competitive market, it can cause a prospective buyer to lose out on a home they love.

More Options with a Contract for Deed

If you’re having trouble qualifying for a mortgage as a self-employed, contract or freelance worker, consider a contract for deed (CD). Slow Flip offers financially stable homebuyers the opportunity to purchase a home on a contract for deed until they qualify for a mortgage. You’ll just need a down payment, a reasonable debt-to-income ratio (considering all income sources). You must also have a plan to pay off the CD within five years.

Could a contract for deed be the tool you need to get into a house today? Give us a call to discuss your situation.

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 at 952-417-0000 today.

The Slow Flip Contract for Deed Process

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

contract for deed process
photo credit: @sora-shimazaki accessed 11/4/21 via CC0
  1. Get pre-qualified: Prospective CD homebuyers must meet a few basic criteria regarding down payment, debt-to-income ratio, and more. Learn more here.
  2. 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.
  3. Find a house: With the help of your Realtor, find a home that fits your budget and meets your needs.
  4. Make the down payment: When the home is under contract, you will make a down payment to the title company.
  5. 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.
  6. 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.
  7. 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.
  8. Move into YOUR home! Begin to work toward adjusting your credit and finances to meet mortgage qualification requirements.
  9. 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.

The Slow Flip CD Gives Homebuyers More Options

When you read through home listings, you may see sellers indicate that they’re open to a contract for deed. However, that doesn’t mean those are the only available options for buying with a CD. The Slow Flip contract for deed allows prospective homebuyers to buy any home on the market.

How the Slow Flip Contract for Deed Provides More Options

In a traditional mortgage, credit is one of the main considerations in determining eligibility. That isn’t the case with the Slow Flip contract for deed. We take a more holistic view of a potential buyer’s financial situation, looking at income, down payment, and contributing circumstances. You can see all of our CD criteria here.

In addition to providing a homebuying option where one may not have existed before, the contract for deed gives more options throughout the buying process. Our CD allows you or your clients to buy any home in the metro area on a contract for deed, not just the homes where the seller is willing to consider a contract for deed. This can significantly open home availability and allow homebuyers to find the homes that will work best for their family and future.

Contact Us to Get Started!

If you or your client has any questions about the Slow Flip contract for deed, or wants to explore the process, get in touch!

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 at 952-417-0000 today.

How to Improve Your Credit Score to Convert a CD to a Mortgage

What is one of the most common reasons that homebuyers seek a contract for deed instead of a mortgage? Credit. Whether due to debt, divorce, foreclosure, bankruptcy, or any other reason, a low credit score can make it difficult, if not impossible, to qualify for a mortgage.

credit score
photo credit: @towfiqu999999 accessed 9/30/21 via CC0

This is where the Slow Flip contract for deed comes in. It allows you the time you need to raise your credit score, without forcing you to sacrifice the stability of homeownership. But, in the Slow Flip program, you must convert a CD to a mortgage within five years. 

How to Improve a Credit Score to Get a Mortgage

Correct Credit Report Errors

According to realtor.com, identifying and correcting errors on your credit report is a relatively fast and easy way to raise your credit score. Get a copy of your credit report and look it over. If you find any errors, you must provide documentation of the mistake to the credit bureau. Typically, bureaus have 30 days to investigate errors.

Settle Delinquent Accounts

If you have accounts that are past due or in collections, bringing them current will boost your credit score fairly quickly. However, your late payment history will remain on your credit report for seven years.

Reduce Your Credit Utilization

Credit utilization is the amount you owe versus your available credit. For example, if you have a $10,000 credit limit, and you owe $8,000, you’re utilizing 80% of your available credit. Pay down balances to improve your credit score. Applying for a new credit card will improve your utilization, but remember that credit applications show up on your credit report, and may lower your score in the short term.

Do you have questions about the Slow Flip contract for deed or our process? Get in touch – we’re here to help!

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 at 952-417-0000 today.

How Realtors Can Help Homebuyers Make Tough Decisions

Real estate agents do more than just show homes and write contracts. Realtors get to know homebuyers and their families, guide them through a complicated process that is both stressful and emotional, and help them make tough decisions throughout. The expertise and experience of real estate agents is vital to a buyer’s success.

tough decisions
photo credit: @rodnae-prod accessed 9/23/21 via CC0

So how can agents help homebuyers make those tough decisions, when emotions are running high and so much is at stake? We’re sharing a few tips from McKissock.

How to Help Homebuyers Make Tough Decisions

  1. Keep them informed: Involve buyers in all parts of the homebuying process, not just touring homes and closing. Keep them updated throughout, and be available to answer questions.
  2. Help maintain perspective: It’s easy for buyers to get caught up in the cosmetic details of a home that aren’t really relevant to their goals and needs. Remind them of their “must-haves” if they start to get off track.
  3. Be honest: Honesty can ward off confusion and disappointment later in the buying process. Be upfront throughout the process.
  4. Be patient: Homebuyers won’t have the same level of understanding about the buying process, even if they’ve been through it before. Answer their questions patiently and kindly, and they’re more likely to remain calm and level-headed.

If you have clients who are unable to qualify for a mortgage, consider the Slow Flip contract for deed. Contact us to learn more!

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 at 952-417-0000 today.

Is This the Right Time to Buy a House?

How to Know If Now Is the Right Time to Buy

right time to buy a house
photo credit: @amead97 accessed 8/31/21 via CC0

As with most major life decision and transitions, there is no single right time to buy a house. However, if you’re struggling to figure out whether to buy now or wait another couple of months of years, we have some advice.

Here are a few things to consider when deciding whether it’s the right time to buy a house. Of course, it’s always important to consult with trusted professionals, such as a real estate agent or financial planner, before making this big step.

What to Consider When Deciding Whether to Buy Now

  1. Time of year: Summer has the highest inventory of homes available, but winter tends to be less competitive. Choose the time of year that works best for your goals and situation.
  2. Economy: What’s the state of the economy, and how could that affect your financial situation?
  3. Local market: Is your local housing market trending toward buyers or sellers? How much inventory is available? How fast are homes selling? What are the pricing trends?
  4. Life events and needs: Do you need to move for a new job, a new baby, or to have more space for remote work?
  5. Financial situation: Can you make a down payment right now? How much can you afford to spend on a new home? Are there homes available in your price range?

If your financial situation is a barrier to homeownership due to credit issues, income structure or similar circumstances, that doesn’t mean a new home is off the table. Contact Slow Flip to discuss your options!

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 at 952-417-0000 today.

Would You Buy a House Sight Unseen?

In this competitive real estate market, time is of the essence. If prospective homebuyers are interested in a home, they need to make an offer as soon as possible. And, in some cases, that means buying a home sight unseen – without ever stepping foot in it.

unseen
photo credit: @kindelmedia accessed 7/22/21 via CC0

Buying a house without seeing it in person isn’t necessarily a bad thing. Technology makes it possible to tour a home from afar, and a good realtor can help determine whether a house is right for their specific client. Here are five tips from Realtor.com for buying a house without touring it in person.

How to Buy a House Sight Unseen

  1. Find a good local real estate agent. You want someone in the area in which you’re buying. They should be familiar with the specific neighborhoods you want.
  2. Take advantage of technology. Look at photos and 3D tours of the home, and arrange a personal tour via FaceTime or a similar technology.
  3. Ask questions. Don’t hesitate to ask any and all questions. The more you ask, the more you’ll know and the more comfortable you’ll be.
  4. Get a floor plan. This helps you fully understand the layout of the house. If a floor plan isn’t available, ask the seller to measure room dimensions.
  5. Get an appraisal and a home inspection. This will identify any issues that you can’t see from a virtual home tour.

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 at 952-417-0000 today.

A Moving Timeline to Make Your Move Easier

Whether you’re relocating across the country or down the block, moving into a new home is a big and daunting task. But after helping dozens of families find new homes, we at Slow Flip have learned a lot about the moving process – and what makes it easier. Follow this general timeline for a smooth and stress-free move.

moving timeline
photo credit: @cottonbro accessed 6/29/21 via CC0

A Timeline to Make Moving Easier

Two Months Before Your Move

  • Create a moving budget and source materials
  • Get familiar with the new home’s floor plan
  • Schedule repairs and cosmetic upgrades
  • Complete change of address forms
  • Transfer medical records and prescriptions, if necessary

One Month Before Your Move

  • Hire a moving company (or secure help from family and friends)
  • Declutter and donate unwanted clothing and home goods
  • Locate and gather all essential documents
  • Start packing!

Two Weeks Before Your Move

  • Pack everything except the items you use every day
  • Arrange for a dumpster or additional trash disposal
  • Make preparations for your pets on moving day

Moving Week

  • Pack everyday essentials to unpack in the new home first
  • Confirm all moving day plans
  • Clean your home or hire a cleaning service
  • Once empty, defrost refrigerators and freezers

The Big Day!

  • Take a final walk-through of the new home
  • Keep valuables and important papers with you at all times
  • After items are moved, check for any damage
  • Settle in and enjoy your new home!

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 at 952-417-0000 today.

CD Benefits for Homebuyers

Homeownership is one of the best tools to achieve your financial goals. However, if you find yourself unable to qualify for a mortgage due to credit, income, or other issues, your progress can take a hit. At Slow Flip, we work to make the contract for deed process as simple and transparent as possible, in order to help homebuyers reach their goals. There are many CD benefits that can get you closer.

CD benefits
photo credit: @mart-production accessed 5/13/21 via CC0

CD Benefits for Buyers

  1. No Mortgage Required: One of the most impactful benefits of a contract for deed is that it allows buyers who don’t qualify for a mortgage to buy a home. Then, buyers have time (up to five years in the Slow Flip contract for deed) to adjust their finances in order to get a mortgage.
  2. No Mortgage Insurance: Unless you qualify for a conventional mortgage and buy with a 20% down payment, mortgage insurance will most likely be included in your monthly payment. With a contract for deed, there is a premium added to your contract balance, but your monthly payment has no mortgage insurance. The funds paid for your contract balance are either principal or interest.
  3. Tax Deductible Interest: A contract for deed has the same tax-deductible interest consideration as buying a home and using a mortgage to finance.
  4. Decreasing Balance: Much like buying a home with a mortgage, your contract for deed balance will reduce with each payment, since part of that payment includes principal. This is different than a lease option or rent-to-own agreement, which often have upward price adjustments year after year or even month to month.

Want to learn more about the contract for deed process? Check out these blog posts:

Contract for Deed vs. Rent-to-Own

How Does Minnesota Regulate Contracts for Deed?

Why You Don’t Need Mortgage Insurance with a Contract for Deed

How to Find a Home to Buy with a Contract for Deed

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 at 952-417-0000 today.

4 Tips for Buying a Home in a Seller’s Market

Despite the pandemic, the Twin Cities has been a seller’s market for much of the past year. Sellers are receiving several offers, often within hours of listing and for thousands of dollars over asking. As a result, inventory of homes for sale is tight, and prospective homebuyers are having a difficult time even finding homes to make offers on, let alone having those offers accepted.

So how can prospective buyers succeed in a seller’s market? By making their offers as attractive as possible.

How to Make a Stronger Offer and Succeed in a Seller’s Market

buying a home in a seller's market
photo credit: @ketut-subiyanto accessed 4/14/21 via CC0

Get Pre-Approved

With offers being made and accepted in a matter of hours, prospective homebuyers must be ready to make an offer as soon as a home comes on the market. Make sure all supplemental financial paperwork is complete and ready to go.

Don’t Get Bogged Down by a Contingency

In a multiple offer situation, price isn’t the only thing that factors into a seller’s decision. They’re also likely to favor offers that carry a lower risk of snags or complications. If your offer has a contingency, such as requiring the sale of your own home, it could make your offer less attractive.

Carrying a contingency? Slow Flip can help! By buying a home with our contract for deed, we help you make a non-contingent offer, increasing the chances that your offer will succeed.

Make the Strongest Offer Possible

When homes are being sold for thousands over asking, it can be difficult to make an offer that is strong enough, especially if your budget is tight. This is another situation in which the Slow Flip program can help. We can make a stronger offer, get you in the home, and then allow you more time to make payments and gather the funds necessary to secure a mortgage.

Write an Offer Letter

Never disregard the power of a personal connection. Write a short letter to the seller, with an overview of your family and your interest in the home. In a sea of similar offers, it could be the detail that makes yours stand out the most.

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 at 952-417-0000 today.

How to Find a Home to Buy with a Contract for Deed

The contract for deed process is different from the standard mortgage procedure in many ways. For example, there is no mortgage insurance requirement, and the closing cost structure and schedule is different. But when it comes to the task of actually looking for a home to buy, the process is very similar, whether you buy with a mortgage or a contract for deed. So when someone asks us how to find a home to buy with a CD, we say: the same way you’d find a home to buy with a mortgage!

Find a Realtor

At Slow Flip, we require all homebuyers to be represented by a real estate agent or attorney. This both ensures that your interests are protected, and makes the process go more smoothly for all parties. If you need help finding a Realtor, give us a call. We can connect you with a trusted Realtor partner. (Read about how and why we work with Realtors here.)

Start Searching

find a home
photo credit: @divinetechygirl accessed 3/2/21 via CC0

The next step: find a home! Open your favorite search engine and type “contract for deed homes near me,” “contract for deed homes in Minnesota,” “contract for deed homes for sale,” or something similar. Or, visit a real estate website and search there. Depending on the sellers, price or other variables, some of those homes may be available for purchase using a contract for deed. You may have better luck with homes that are for sale by owner, as those sellers are usually more motivated to sell quickly and with fewer fees.

Put Your Realtor to Work

If you find a home you’re interested in, ask your Realtor to check on the status, and whether the seller would be open to a contract for deed purchase. If you get the green light, contact Slow Flip, and we’ll take it from there!

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 at 952-417-0000 today.

How to Buy a Home Before You Sell

There are many good reasons to buy a new home before you sell your existing house. Not only will it make your offer more attractive, but it will make the moving process easier. And it could result in higher offers when you put your house on the market.

However, without income from the sale of an existing home, it’s often difficult to find enough money for a down payment, and you may not qualify for a mortgage on the new home. But that doesn’t mean it’s impossible. Here are a few ways to buy a home before you sell.

buy a home before you sell
photo credit: @cottonbro accessed 02/15/21 via CC0

Take out a home equity line of credit

This is an essentially a second mortgage on your current home. The cash received from the loan can be used for any purpose.

Put down a smaller down payment

While most people put down 20%, it isn’t always required. There may be situations in which 15% or even 10% is permitted, with varying terms and conditions.

Borrow from your 401(k)

Not all plans allow this, so the first step here is to talk to your HR department or plan administrator. This is probably not a good option if you can’t quickly repay your 401(k).

Use a gift from a family member

Many mortgage lenders will allow you to use a gift from a family member for a set portion of the down payment. However, this must be a true gift, not a loan. Also, consider that you may be subject to IRS gift tax regulations.

Contract for deed

Because a contract for deed is not subject to mortgage regulations, there is no consideration of a debt-to-income ratio or similar requirements. As long as buyers can raise the required down payment, a contract for deed is an excellent way to buy before you sell, allowing you to buy a new home, move, and then focus on selling. Once the old house sells, simply convert the CD to a mortgage.

If you think a contract for deed could help making your buying, selling and moving process easier, contact your realtor or give us a call.

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 at 952-417-0000 today.

Six Red Flags to Watch For When House-Hunting

There’s a lot to think about when buying a new home. Most importantly, you must ensure that the house meets your needs and is within your budget, and that financing is available. But you also need to consider the home’s quality and integrity. If you’re house-hunting, here are a few red flags that can alert you of potential defects or issues with a home, courtesy of BHGRE.

house-hunting
photo credit: @pixabay accessed 12/10/20 via CC0

Inadequate Drainage

If you notice standing water near the home, especially after a rainfall or weather event, it is a sign of poor drainage. This can cause water to seep into basements and garages, create mold issues, and compromise the foundation.

Substandard Repairs

If you notice repairs that were clearly made by an amateur instead of a professional, that can indicate substandard work that may be dangerous or not up to code.

Poor Ventilation

A home must have proper ventilation, or moisture can’t evaporate out and will cause damage to walls and structural elements. Make sure the attic is ventilated to protect the roof, and that there are working bathroom and kitchen fans.

Missing or Loose Handrails

If internal or external handrails are broken or missing, it’s a sign that there are safety issues in the home.

Poor Appliance Maintenance

If a home’s appliances aren’t properly maintained, they’ll need repair or replacement sooner. Check filters, drains and hoses to make sure appliances have been well-maintained.

Rotting Wood

When wood is exposed to moisture, it rots over time, unless it’s been protected and the home is well-ventilated. If you notice any rotting wood while house-hunting, it’s a good sign that there are additional moisture issues in the home.

Ready to buy a home but having trouble securing a mortgage? Give Slow Flip a call.

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 at 952-417-0000 today.

Contract for Deed vs. Rent-to-Own

At Slow Flip, we know the real estate market can be confusing, especially when considering options other than standard mortgage financing. One of the most common questions we get is whether our contract for deed is like a rent-to-own program, and which is the better choice. We’ll break down the differences here.

To learn more about the Slow Flip contract for deed, click here.

rent-to-own
photo credit: @florianschmid accessed 11/15/20 via CC0

What is Rent-to-Own?

In a rent-to-own program, the potential buyer rents the home from the owner, with the option to buy the home at some point in the future. The owner remains on the deed and he or she makes the mortgage payments. These deals can easily fall through, and the potential buyer may not ever end up buying the home, despite making rent payments for several months or years.

What is a Contract for Deed?

A contract for deed, or CD, creates a contract in which the seller of a home (in this case, Slow Flip) provides a buyer with a period of time to pay off the contracted home price. This is done either by qualifying for a mortgage, paying the contract amount in full, or selling the property.

What’s the Difference?

The primary difference between rent-to-own and contract for deed is the time at which the home changes ownership. In rent-to-own, the seller owns the home until the renter buys it. In a contract for deed, the homebuyer buys the home from the seller (Slow Flip) and begins making payments under the contract.

What are the Risks?

Rent-to-own situations are inherently riskier. The owner could sell the home or lose it to foreclosure, or terminate the agreement if the potential buyer fails to make a rent payment. The fees could end up being higher than if the renter had simply rented a home while saving for a down payment.

Of course, there are risks in any real estate transaction. However, at Slow Flip, we’ve worked hard to create a simple, transparent and trustworthy process – just read the many testimonials we’ve received from our homebuyer clients! If you’re interested in a contract for deed, we invite you to contact us to learn more.

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 in Minnesota 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 at 952-417-0000 today.

Small Changes That Add Big Value to Your Home

Whether you’ve just moved into a new home or you’ve lived in your house for years, the prospect of making upgrades can feel daunting. But you don’t need to make major changes to see improvement to your home’s value – or your enjoyment of it. Realest has a rundown of easy changes you can make to add value to your home, which we’ll summarize below.

value
photo credit: @karaeads accessed 11/15/20 via CC0

Add Light to the Living Room

Because living rooms are often central within a home, they can feel dark and closed off. Adding lighting, either via lamps and overhead lights, or a skylight or suntube, can make a big difference in the feel of the room.

Upgrade Bathroom Fixtures

A complete bathroom overhaul can be expensive. To get a fresh feel in the bathroom without undergoing a major renovation, simply upgrade the fixtures. This is also a great way to make your bathroom more eco-friendly by adding low-flow and sensor-activated fixtures, which could be a huge selling point.

Clean Up the Yard

The yard is the first thing that potential homebuyers see when they arrive at a home. Creating a functional and livable outdoor space will add significant value, and it’s relatively easy to do. It’s also a great idea to add a patio or deck that connects to the house, creating additional space for living, dining and entertaining.

Address Pain Points

Are there parts of your home that make life more difficult? Are there any small changes that could make living there more pleasant? Any upgrades you make will boost your home’s value – and allow you to enjoy it more.

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 in Minnesota 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 at 952-417-0000 today.

Should You Buy or Sell First?

And How a Contract for Deed Can Make the Buying and Selling Process Easier

For first-time homebuyers, the buying process is pretty simple. But when you’re ready to sell that first home and buy another – or when you buy your third, fourth or fifth home – the process is a bit more complicated. Is it best to buy or sell first? How can buyers secure financing before their house sells? What happens when there’s a lag between closing dates?

These are questions with no right or wrong answers. Whether it’s best to buy or sell first depends on your situation and what works best for you. However, there are pros and cons to each approach, as the National Association of Realtors recently discussed. We’ll summarize them below.

buy or sell

Pros and Cons of Selling First

If you sell your home before buying a new one, you’ll have more cash in the bank for a down payment. You’ll also know exactly how much you can spend on a home, which may allow you to make a better offer. And the process is often more straightforward – you won’t have to worry about making two mortgages or finding additional funds for a down payment.

On the flip side, selling your home before buying can lead to a gap between closing dates. You may have to secure transitional housing, which can be costly and inconvenient.

Pros and Cons of Buying First

Buying first can reduce stress and give you greater peace of mind. Usually, you can remain in your home until your move, allowing you to move more slowly and avoiding transitional housing. This is a good option if you’re buying a home that needs updates or renovations.

The cons of buying first are related to costs and finances. Depending on your financial situation, it can be difficult to come up with a down payment before you have sale proceeds in your bank account. In addition, you may have to pay two mortgages for a period of time, depending on how quickly your home sells after you buy.

How Can a Contract for Deed Make the Process Less Stressful?

One additional downside of buying first is that it may make it more difficult to qualify for a mortgage. In many cases, homeowners won’t be able to get a mortgage until they sell their home, even when they have sufficient cash on hand for a down payment. This is where a contract for deed can help.

If you’re buying a house to renovate, or you want to avoid being in limbo between closing dates, a contract for deed can give you the flexibility you need, whether you buy or sell first. Learn more about the Slow Flip contract for deed process and how it could work for your family, and contact us for more information.

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 at 952-417-0000 today.

Closing Costs in a Contract for Deed

When you purchase a home through the standard mortgage process, there are almost always a set of closing costs that must be paid. Often, this becomes a point of negotiation between the seller and the buyer. Closing costs can be used as a way to effectively raise or lower a home price, or as a trade-off for some other expense.

In the Slow Flip contract for deed, it’s a little more complicated. The CD program includes multiple transactions, each with its own set of closing costs. But we’ve worked to simplify the process, as you’ll see in this video.

Multiple Transactions, One Set of Closing Costs

The Slow Flip contract for deed program involves multiple transactions. First, Slow Flip purchases the property that has been selected by the client. Second, the client purchases the property from Slow Flip on a contract for deed. Third, the client pays off the contract for deed within five years.

Each of these transactions has various costs associated with them. To make the contract for deed process simpler, we calculate the total of these ‘transactional costs’ and typically build this into Slow Flip’s acquisition price for the property. This not only simplifies the process, but lowers the amounts necessary at closing from the buyer. If the buyer has additional funds to absorb the transactional costs at closing, instead of including them in the acquisition price, it would lower the overall cost of the contract for the buyer.

If this sounds complicated, contact your Realtor or give Slow Flip a call. We’re always available to answer questions and help potential homebuyers understand whether our CD is right for them.

 

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 at 952-417-0000 today.

 

Home Insurance vs. Home Warranty: What’s the Difference?

For many people, a home is the most expensive purchase they will make in their lifetimes. As such, it’s important to protect that asset, not only to ensure that it remains livable, but to safeguard this major investment. There are two main programs that offer such protection: home insurance and a home warranty. But what’s the difference between the two? Do homeowners need both? We’ll answer those questions below.

home warranty
photo credit: @churchoftodd accessed 08/30/20 via CC0

What is a Home Warranty?

To put it simply, a home warranty is insurance for the parts of a home. A warranty doesn’t cover the home itself, but the systems (such as plumbing and HVAC) and appliances in the home. It covers general wear and tear, and is essentially a contract for the repair or replacement of those systems and appliances (when the disrepair is included within the terms of the warranty). Warranty claims generally require payment of a deductible and include a claim limit.

Home warranties are voluntary, but they can be a good idea for homeowners who don’t have much of a cushion in their finances. Imagine if, in the same week, the furnace goes out, the refrigerator dies and the washing machine stops draining. There aren’t many people who would be able to pay for all of those repairs at the same time. A home warranty can soften the blow a bit.

 

What is Home Insurance?

In contrast with a warranty, home insurance covers the house itself. Insurance generally protects against four major events: weather, fire, theft and personal injury. Because these are usually large-scale and high-cost problems, mortgage companies almost always require homeowners to have home insurance. Even if you don’t have a mortgage, insurance may be required by law. Check with your Realtor, or your state or county government, to determine whether that is the case.

 

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 at 952-417-0000 today.

 

Should You Look at Homes Outside Your Price Range?

When you begin the process of buying a home, one of the first things you should do is set a budget. Knowing how much you can afford – and how much you’re willing to spend – will shape your house hunting journey. But, often, potential homebuyers find a perfect home that is outside their price range. Is it ever a good idea to look at homes above your budget?

According to realtor.com, it’s a good idea to stick to your budget. You decided on that amount for a reason, and it’s easy to get in trouble when you buy a home that you can’t afford. But there are a few situations in which buyers may want to consider homes outside their price range. We’ll discuss those below.

price range
photo credit: @ketut-subiyanto accessed 09/09/20 via CC0

There’s Nothing Available In Your Price Range

The Twin Cities housing market remains extremely competitive, and this tends to create more of a challenge for buyers in lower price tiers. Expanding your price range even slightly could open up more available options. And, depending on the amount, it may not raise your monthly payment by very much.

There Are Other Factors To Consider

If you can’t find a home in your budget in your preferred location, consider additional options that could help strike a balance. For example, if you look in a neighboring town with higher median prices but lower taxes, the total monthly payment might be very similar.

There Might Be Room For Negotiation

This is less likely in a competitive market, but your agent may be able to negotiate a lower price if a home has been on the market for some time.

The first step in determining whether to consider a home outside your price range is to have an open discussion with your agent, mortgage broker or financial planner. Happy hunting!

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 at 952-417-0000 today.