This Contract For Deed program helps families purchase a home using a contract for deed, or CD, instead of financing the home with a mortgage. Also known as an installment contract, the contract for deed can be an ideal method of purchasing a home when buyers need time to adjust their income, credit, debt or other financial components before they can qualify for a mortgage.

Step One: Get Pre-Qualified

Prospective buyers must meet the primary criteria:

  • A minimum of 10% down payment
  • Reasonable debt-to-income ratio for the target home price

  • A plan to pay off the contract within five years
  • Have your Realtor contact us to see if you pre-qualify

We will have a brief discussion of more specific situation details to ensure that the client is a good fit for the program. It is always recommended that the buyer have a discussion with a licensed mortgage originator to help determine if a traditional mortgage is available now, or will be soon.

Step Two: Get Pre-Approved

Gather Documentation

Gather documentation regarding down payment, assets, income, credit and employment are submitted and reviewed to determine qualification for a Slow Flip contract for deed. Once the application is started, these documents can be uploaded or emailed. The review can be completed within 24 hours!

Step Three: Look For A Home!

The most exciting part of the process!

Slow Flip can help work with Realtors and their buyers to help them identify homes that are acceptable and affordable for the buyer’s financial situation.

Step Four: Down Payment Plans

Once a home is under contract and in the inspection contingency period, buyers will remit their down payment – equal to earnest money – to the title company. An exception to this step is if the new home purchase is contingent on another event, such as the sale of the client’s current home. There is a slightly different process if the new home purchase is contingent on the sale of client’s current home.

Step Five: Inspections

As in any home purchase transaction, the buyer will coordinate any desired inspections with their Realtor and inspectors at their own expense and timing within the purchase agreement parameters. Slow Flip does not require inspections unless there are obvious or discussed issues with the home.

Step Six: Appraisal, Title and Insurance

The buyer does not need to have an appraisal for the purchase of a home on a contract for deed. Slow Flip will usually have an appraisal performed for its acquisition process and to verify the value is in line with the parameters of the transaction. The title company used by Slow Flip to acquire the property is also used to sell the property to the contract for deed buyer. The buyer will choose their own insurance provider.

Step Seven: Closing

At closing, the buyer has likely already provided all the down payment; but there are some items to account for on the day of closing. These include:

  • Realty admin fee (buyer’s Realtor’s brokerage)
  • Annual homeowners insurance premium
  • Daily property taxes and interest through the end of the closing month
  • Any association dues and expenses if applicable

Step Eight: It’s YOUR home…

…subject to making payment and adhering to the terms of the contract! For the next months or maybe years, the CD homeowner works towards adjusting credit and finances to align with mortgage qualifications.

Step Nine: Convert to Mortgage

Ideally within five years, the contract for deed homeowner will qualify to refinance into a mortgage. Changes in the interest rate and housing markets happen frequently, so hopefully a mortgage with a lower rate than your contract for deed will be available sooner than later!