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Home Purchase - Home Refinance
Serving MN WI IA ND SD
REFINANCING your Contract For Deed
Many people, especially the last few years have bought a home on a Contract-for-Deed, sometimes also known as a land contract. Generally speaking, most of the contracts are balloon loans with higher interest rates. While the payments are usually based on 30-year term, the the Contract For Deed itself is almost always a balloon loan due in full in just 3-years to 5-years. Therefore many people are currently in need of a standard traditional mortgage loan refinance to pay off their contract-for-deed.
We do Contract for Deed Refinances in MN WI IA SD ND only.
Many people believe they need to purchase the home at the end of the contract, but technically, you sort of already own the home. Therefore your just need to do a standard refinance mortgage loan.
If it was a purchase, you would need a down payment. But because we treat it as a refinance, no down payment is needed.
Most people are able to refinance their Contract-For-Deed with little to no money out of pocket, except for paying the cost of an appraisal up-front. Some money may be needed in some rare cases if you owe too much compared to the homes current value.
We are experts in Contract-for-Deed refinance loans
Of course like any other loan, there are closing costs - but you are able to roll those closing costs into the new loan!
Contract-for-deed refinancing is pretty similar to any other mortgage refinance. We are going to take a loan application, review your income, credit score, and do a property appraisal. Assuming everything looks good, and you qualify for the new loan, paying off a contract-for-deed is easy.
Contract-for-Deed refinance only allows you to pay off the existing contract balance, plus any closing costs. No additional cash out allowed.
Because of the contract-for-deed, your lender is going to need just a few additional items above the typical loan of W2's, pay stubs, bank statements, and tax returns:
- Copy of the Contract-for-Deed
- Proof of on time payments on the contract for the last 12 payments (1-year) - This needs to independent third party proof like cancelled checks, or bank statements showing a payment
- Name, phone number, and contact information for your contract holder
- Payoff demand from Contract Holder
- Contract must have been in place at least 12 months
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Fire your contract for deed holder - refinance today. It is easy, and we can help! Fire your contract for deed holder
Equal Housing Lender, Cambria Mortgage NMLS# 322798. The Joe Metzler team at Cambria Mortgage lends in: Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota only. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. Information here can become out of date, and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Not all programs available in all states. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. © 1998 - 2022, Joe Metzler, NMLS 274132. Cambria Mortgage NMLS 322798
