A Contract for Deed is an instrument by which one can buy a house avoiding real estate agents and allowing both buyer and seller great flexibility to tailor the terms of the transaction to fit the specifics of the situation. Most importantly, provided the instructions are followed on this document, the buyer can forgo a traditional purchase transaction and associated down payment. Down payment requirements usually get smaller the longer the term on the contract because when the buyer is ready to pay the seller off entirely, that financing is done based on what the property is worth one or more years in the future.
In many situations, buying through a Contract for Deed is better than traditional purchasing with a real estate agent. Some of these situations include:
Buying during a period of particularly high interest rates;
When a raise is coming but isn’t yet in place;
When the seller wishes to avoid traditional realtor fees;
When the tenant is not yet the occupant;
When the buyer needs transactional closing costs to be rolled into the loan;
When either or both parties need flexibility;
When the buyer lacks a down payment or lacks the amount of a down payment required to get the payment comfortable; and
When the seller is under a time constraint to have a notarized sale document.
A Contract for Deed is an instrument by which one can buy a house avoiding real estate agents and allowing both buyer and seller great flexibility to tailor the terms of the transaction to fit the specifics of the situation. Most importantly, provided the instructions are followed on this document, the buyer can forgo a traditional purchase transaction and associated down payment. Down payment requirements usually get smaller the longer the term on the contract because when the buyer is ready to pay the seller off entirely, that financing is done based on what the property is worth one or more years in the future.
In many situations, buying through a Contract for Deed is better than traditional purchasing with a real estate agent. Some of these situations include:
Buying during a period of particularly high interest rates;
When a raise is coming but isn’t yet in place;
When the seller wishes to avoid traditional realtor fees;
When the tenant is not yet the occupant;
When the buyer needs transactional closing costs to be rolled into the loan;
When either or both parties need flexibility;
When the buyer lacks a down payment or lacks the amount of a down payment required to get the payment comfortable; and
When the seller is under a time constraint to have a notarized sale document.
Purchasing this product allows the buyer to get $165.00 in credits toward closing costs when the final transaction to pay off the seller in full is done, if the loan is done through MPS.
