Contract for Deed Refinance
To refinance a contract for deed, is the goal of most buyers in the overall contract for deed transaction. A buyer would like to obtain financing so that they can get the deed to the property into their own name. The seller would also like very much for this to happen as the seller than gets their full purchase price when they own the house free and clear and when they don’t own the house free and clear it takes the seller off the hook and helps pay off their existing financing and releasing them of their mortgage obligation. Based on local research with a top mortgage broker it is said that anyone that chooses to get financing in less than 12 months after a contract for deed, they will be seeking new financing like a new purchase under this premise and guidelines. For those who wait over 12 months (which is most) they will have the opportunity to use the appraised value in the transaction for an LTV (Loan to Value) that satisfies the lenders. Of course the buyer will still need to work on their credit and go through a regular financing process to get approved, but most would agree that a refinance is easier than a new purchase when it comes to getting financing in your own personal name.