FAQS
Is this for traditional homebuyers or real estate investors?
The short answer is, both! Our contract for deed program offers a unique opportunity for both traditional homeowners and investors to purchase and have immediate access to properties with a much smaller down payment and without the need for a credit check, income verification, or background screening.
For traditional homeowners, this program allows them to have full access to their property and the ability to renovate, decorate, and start building equity, with a lower barrier of entry and less stringent underwriting requirements than those of a traditional lender. Instead of paying rent, they can make monthly payments towards ownership of their property, providing a path to building long-term wealth and stability.
For investors, the contract for deed program offers an opportunity to quickly renovate and cash flow their properties with a low down payment and significantly fewer fees and interest points than hard money loans. The monthly payment often allows for a margin from the market rental rate, providing an opportunity to generate monthly cash flow from the investment. Additionally, investors can acquire multiple properties and scale their real estate investment portfolio seamlessly.
You might be a good fit for this program if…
You would prefer to put a smaller down payment towards the property instead of the typical 20% down required by an institutional mortgage lender
Your credit score or debt-to-income ratio aren’t quite there yet
You’re self-employed or just got a new job
You would rather put your rental payments towards building equity
You want to scale your rental portfolio without tying up too much capital in one deal
Who is Responsible for Maintenance
Who is responsible for maintenance?
Much like a traditional home sale, all preventative maintenance, repairs, capital expenditures, and updates are the responsibility of the buyer.
This differs from rent to own agreements where the buyer assumes the
role of a tenant, and the seller retains landlord responsibilities.
When purchasing a property using a contract for deed, you enjoy all the benefits and burdens of homeownership. We act as the lender to make properties accessible to people who have a hard time purchasing homes the traditional way.
Is this for traditional homebuyers or real estate investors?
The short answer is, both! Our contract for deed program offers a unique opportunity for both traditional homeowners and investors to purchase and have immediate access to properties with a much smaller down payment and without the need for a credit check, income verification, or background screening.
For traditional homeowners, this program allows them to have full access to their property and the ability to renovate, decorate, and start building equity, with a lower barrier of entry and less stringent underwriting requirements than those of a traditional lender. Instead of paying rent, they can make monthly payments towards ownership of their property, providing a path to building long-term wealth and stability.
For investors, the contract for deed program offers an opportunity to quickly renovate and cash flow their properties with a low down payment and significantly fewer fees and interest points than hard money loans. The monthly payment often allows for a margin from the market rental rate, providing an opportunity to generate monthly cash flow from the investment. Additionally, investors can acquire multiple properties and scale their real estate investment portfolio seamlessly.
You might be a good fit for this program if…
You would prefer to put a smaller down payment towards the property instead of the typical 20% down required by an institutional mortgage lender
Your credit score or debt-to-income ratio aren’t quite there yet
You’re self-employed or just got a new job
You would rather put your rental payments towards building equity
You want to scale your rental portfolio without tying up too much capital in one deal
Who is Responsible for Maintenance
Who is responsible for maintenance?
Much like a traditional home sale, all preventative maintenance, repairs, capital expenditures, and updates
are the responsibility of the buyer. This differs from rent to own agreements where the buyer assumes the
role of a tenant, and the seller retains landlord responsibilities. When purchasing a property using a
contract for deed, you enjoy all the benefits and burdens of homeownership. We act as the lender to make properties accessible to people who have a hard time purchasing homes the traditional way.
Managing Monthly Payment
How do I pay each month and does the amount ever change?
As a buyer, your monthly payment will never change throughout the life of the loan, other than changes due to yearly property tax and homeowner's insurance increases. It is a fully amortized principal balance with a set interest rate and term. Buyers enjoy our ACH autopay system because it ensures a convenient and hassle-free payment process. We take care of all the setup prior to move-in and payments are automatically deducted from the buyer’s account each month. This eliminates the stress of paying on time and the worry of missing payments and incurring late fees.
What happens if I miss the payment?
Making timely monthly payments is essential for avoiding late fees and the risk of defaulting on your property. All payments are due on the first of each month. If by the fifth we are unable to process the monthly payment via ACH autopay due to insufficient funds, there will be a $35 late fee added. If we don't receive your payment by the 10th, we may have to file an unlawful detainer, which could lead to eviction. It is important to stay up-to-date with your payments to enjoy a smooth and stress-free experience.
What if I want to move out early?
All of our houses purchased using a contract for deed are fully amortized over a set period of time, usually 30 years to ensure monthly payments are manageable for buyers. If you want to move out before the end of the term, you have 2 options:
1. Pay off the principal balance on the loan by selling or refinancing the property
2. We offer a $1,000 move out credit which is eligible for buyers who do not want to wait to refinance or sell the property in order to move. To qualify for the move out credit, you just have to have lived in the property for at least 12 months, be current on all payments, and provide us with a 30 day notice.
Not Seeing Your Question Here?
Reach Out Anytime!
House Buyers Hub Real Estate provides trusted property solutions.
Follow us
Gallery
