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Bridge to Success is a new and remarkable approach to homeownership – a combination of education and counseling that aims to revitalize your credit and increase your ability to borrow when the time comes. Bridge to Success leads to the revitalization of family homeownership dreams, and here’s how it works:
Meet: Fill out an application and provide documentation to schedule a one on one meeting with your loan officer. At this time, we’ll discuss your goals and determine how we can help you achieve them.
Educate: Attend our homebuyer education class called Home Stretch. It’s a great time to learn whether or not homeownership is right for you. Find the nearest Home Stretch Class by contacting Minnesota Home Ownership Center (or by clicking here.).
Financial Coaching: Work with a responsive and supportive financial counselor. Together, you’ll come to understand your current financial situation, create an action plan including a comprehensive family budget plan, and establish your path to a happier, healthier relationship with your finances.
In this phase, your counselor will also review your credit report and assist you in addressing any issues. Our goal is to revitalize your credit and increase your ability to borrow when needed.
Seek and Find: Once your “readiness” is established, you will begin the search for your dream home. Once you find it, you will enter into the actual contract for deed for the property. For the next 3 years while in your home, you’ll continue to work with your financial coach with the goal of strengthening your finances and ultimately refinancing into a conforming loan product for the long term.
Celebrate: You’ve made it! You’ve done a lot of hard work and you’re ready to cross the bridge! You’ve restored your credit, improved your spending habits and you are ready to refinance! Celebrate Success!
Program Benefits and Responsibilities for the Contract for Deed Home Buyer
The Bridge to Success Contract for Deed Program creates an opportunity for individuals and families to own a home where no other opportunity is available without the high financial risks of dealing with speculators. Individuals and families with stable income and capacity can purchase now homes are more affordable than they have been for years. Contract for Deed owners have an equity interest in the home, and the benefits of home ownership, including the deduction of interest and real estate taxes on state and federal income taxes. The Contract for Deed payment includes escrows for taxes and insurance, which makes sure they are paid in a timely manner.
The home buyer needs to have a minimum investment of $2,000 or 2%, whichever is less. They must agree to participate in both the Financial Management Program and the Sustainability Program. They also agree to refinance the Contract for Deed as soon as they have removed the barriers preventing them from qualifying for an FHA or conventional home loan.
The end goal is successful sustainable homeownership that helps create a happier healthier vibrant community.
What is a Contract for Deed? Click here for more information.