How Contracts For Deeds Helps Self-Employed Purchase Homes

How Contracts for Deeds Can Help Self-Employed Individuals Purchase a Home

Purchasing a home can be a stressful and sometimes difficult task, especially for self-employed individuals. Traditional mortgage lenders often require strict income verification, sizable down payments, and impeccable credit scores, making it challenging for those who work for themselves to enter the housing market. However, there is a solution that offers flexibility and opportunity for the self-employed: contracts for deeds.

In this blog post from Twin Cities Contracts for Deeds, we will explore how contracts for deeds can help self-employed individuals overcome these hurdles and fulfill their dream of homeownership. Keep reading to learn more.

Flexibility in Income Verification

Contracts for deeds offer self-employed individuals more flexibility in income verification compared to traditional mortgage lenders. Unlike banks or credit unions, contracts for deeds focus less on formal income documentation such as tax returns or pay stubs. Instead, these arrangements consider other factors, such as bank statements and proof of regular income. This allows self-employed buyers to overcome the challenge of demonstrating a stable income stream.

Lower Down Payment Requirements

Contracts for deeds often require a lower down payment compared to conventional mortgages. While banks may typically require a down payment of 20% or more, contracts for deeds from Twin Cities Contracts for Deeds accepts a down payment of 10%. This lower barrier to entry offers self-employed individuals the opportunity to enter the housing market with fewer upfront expenses, freeing up capital for business investments or other financial goals.

Opportunities for Credit Improvement

For self-employed individuals with less-than-perfect credit, contracts for deeds can provide a pathway to improve their credit scores. By consistently making timely payments on the contract agreement, borrowers can demonstrate responsible financial behavior. Over time, this positive payment history can help improve their creditworthiness, making it easier to secure traditional financing in the future.

Flexibility in Negotiating Terms

Contracts for deeds present self-employed homebuyers with increased flexibility in negotiating terms compared to conventional mortgages. Since contracts for deeds bypass traditional lenders, buyers have the opportunity to work directly with sellers to tailor agreements that meet their unique financial needs.

Choose Twin Cities Contracts for Deeds

Are you self-employed and looking for an alternative way to become a homeowner? Work with the team at Twin Cities Contracts for Deeds to purchase a home. Contact us today to get started.

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