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    Firsttimebuyer's Avatar
    Firsttimebuyer Posts: 2, Reputation: 1
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    #1

    Sep 2, 2010, 04:32 AM
    If we refinance a contract for deed do we have to prove down payment monies
    We took out a line of credit for a down payment on a contract for deed. Will that be a problem when we go to refinance by conventional mortgage?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Sep 2, 2010, 05:48 AM

    It shouldn't be if you qualify for a mortgage. I'm curious, though if a lender would grant you a line of credit, why couldn't you just get a mortgage instead of using a contract for deed?
    Firsttimebuyer's Avatar
    Firsttimebuyer Posts: 2, Reputation: 1
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    #3

    Sep 2, 2010, 06:53 AM
    Quote Originally Posted by ScottGem View Post
    It shouldn't be if you qualify for a mortgage. I'm curious, though if a lender would grant you a line of credit, why couldn't you just get a mortgage instead of using a contract for deed?
    We have excellent credit now, but are 3/5 years out of bankruptcy and don't qualify for conventional loan right now. We will in 2011. FHA loans have ceilings that are not as high as our loan amount.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Sep 2, 2010, 09:17 AM

    Ahh, understandable. Normally, people who go the contract for deed route are those that have trouble arranging financing. Contracts for deed deals tend to heavily favor the seller. So make sure you have your attorney look over the contract carefully.
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