This beautiful, and unique home in St. Louis Park, recently featured on WCCO news, is now available to buy Contract for Deed.
The sellers of 3771 Alabama Ave. So, St. Louis Park, MN 55416, have? recently decided to add this type of financing to the other types that they?ll accept (CONV, FHA, VA mortgages, or cash) from buyers.
Buying homes Contract for Deed (CD) is growing in popularity with many prospective home buyers. The sellers are aware of this.
Positioned on a large corner lot this custom built (1994), 6 bedroom, 4 bathroom, two story home, with nearly 4,000 finished square feet, is just minutes from downtown Minneapolis.
The striking feature that makes this home so unique is the large, wrap around veranda (as seen in main picture). Visitors frequently ask if it?s a 100 year old home that?s been remodeled. It?s actually not even 20 years old, but has many features, starting with the veranda, that haven?t been common in homes for many decades.
This home was recently featured in this report on WCCO?s 10pm news about the growing popularity of porches, decks, and verandas on homes here in the Twin Cities. The reporter in this video, Jamie Yuccas, called us saying this home was the best example they could find to demonstrate that;
When buying a home in the Twin Cities Contract for Deed (CD), the seller is effectively financing the buyer?s purchase for a predetermined number of years (usually 2-10), until the buyer can secure a purchase mortgage of their own. At that time a balloon payment is due to the seller, which is usually paid via purchase mortgage obtained by the buyer.
Buying a home CD is growing in popularity as the number of prospective home buyers, who can?t obtain a purchase mortgage for two to five years due to having recently gone through a foreclosure, or short sale, grows. These prospective buyers have enough cash for the down payment, can afford the monthly payments, and will be credit worthy enough in two to five years to obtain a regular mortgage.
Another group of prospective home buyers that are purchasing homes CD are business owners. Since mortgage guidelines use taxable income for qualification, many successful business owners, and professionals who?s income is 1099 (as opposed to W-2) don?t qaulify to buy as much house as they?d like with a regular purchase mortgage. This is especially the case during their first few years of being in business for themselves, or working as an Independent Contractor. So, buying CD allows them to buy as much house as they?d like, sooner than later.
When one buys a home CD the seller remains on the title. But, otherwise, the buyer has all the normal rights of ownership with the property. The title is transferred at the end of the term, when the balloon payment is due from the buyer.
This type of purchase/sale should probably be called ?Contract for Title.? Or, at least thought of as such.
When buying, or selling a home CD, the same Purchase Agreement (PA) contracts as regular home sales are used. Sale price, down payment, monthly payments (usually based on current mortgage rates), and term of until balloon payment is due, are all in the PA.
Selling homes CD is growing in popularity as well because it offers sellers some tax advantages. One such advantage is avoiding having to pay capital gains taxes on the entire amount for which an owner could sell a home they own free and clear.
CD sellers usually want enough down payment to cover; 1) Real Estate Agent fees, and 2) a security deposit from the buyer. The amount is negotiable.
Please contact us today if you?re interested in this home, or buying any home in the Twin Cities Contract for Deed.
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kim zolciak travis pastrana quinton coples a.j. jenkins riley reiff david decastro aj jenkins
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