Down Payment – a minimum of 10% or $30,000 (whichever is higher) is a reasonable down payment for A Good Deed contract for deed. Sources can be bank funds, 401k or retirement assets, proceeds from the sale of another property, proceeds from sale of other assets, real estate commissions and even gift funds (partially).

Income – Reasonable monthly debts compared to income (known as debt-to-income ratio) is needed to help ensure monthly contract for deed payments will not be uncomfortable for a homebuyers budget. Unlike the mortgage world, A Good Deed contract for deed program can consider upcoming future income, part-time or seasonal income, non-purchasing spouse income, fixed income and asset-depletion perspectives. We also have creative ways to work with self-employed buyers who often write-off a lot of income for taxes purposes.

Exit Strategy – We want to clarify the plan to pay off the contract for deed within 5-10 years. Typically refinancing with a mortgage is the plan, but some exit strategies involve selling the property or making large periodic payments. Having a reasonable plan is critical to success with A Good Deed contract for deed.

Credit – A relief for many buyers is that YOUR CREDIT SCORE IS NOT A FACTOR with A Good Deed contract for deed!  Yes, we will review your credit, but unlike a mortgage company, the score is not relevant to owning a home. The reason: Credit scores will rise and fall throughout your life. If the most significant factors of homeownership are present (down payment and proper debt-to-income), its very likely your credit will improve within a few years and open mortgage financing options so you can refinance your contract for deed.