real estate financing Archives

April 19, 2024April 25, 2024

Risky Business? Minnesota Home Buyers Skip the Mortgage, Preferring Contracts for Deed

Land contract financing, a.k.a. the contract for deed, is a go-to method of home buying in Minnesota — especially in urban neighborhoods. These contracts allow homeowners to sell directly to buyers, bypassing the scrutiny of a mortgage lender. Each year, thousands of Minnesota buyers use them to finance their home purchases.

Federal lawmakers across the political spectrum say it’s high time for Congress to apply stricter oversight to Minnesota, and to all states.

But why? What’s going on? Would more regulation make sense? Let’s take a look.

February 16, 2024April 25, 2024

Wraparound Mortgages: When They’re Used and How They Can Help

Ever heard the term wraparound mortgage? Because this is actually a set of two mortgages for the same home, it’s more complicated than a regular mortgage. It can present special risks, and it’s less commonly seen in the world of real estate.

That said, some have used it to be able to get a home deed in their own name.

Is that considered a good idea? Maybe. And how is it done? There are two main ways: through a seller, and through a professional lender.

Let’s take a walkaround through wraparounds!

January 5, 2024April 25, 2024

Buying Without Your Spouse? What to Know About a Purchase Money Mortgage

Sometimes a homebuyer who’s married wants to buy property as an individual. They want to be the sole buyer, with no other name on the closing papers.

How can it work? Consider the purchase money mortgage.

As Cleveland’s CrossCountry Mortgage® company explains, “if a married person wants to purchase a property without their spouse being on the loan OR on the title, they can classify the transaction as a purchase money mortgage.”

With this mortgage, the marriage partner is (a) not responsible for repaying the lender for the mortgage; and (b) not named on the deed.