Buyers
QCD™ Makes Home Ownership Easy- No More 20% Down
The QCD™ usually has a low down-payment amount (1% of the home price) to the seller and can protect the buyer during the contract term against situational changes or problems with the home, through contract termination provisions. There are also no closing costs to the buyer at contract signing, and credit qualification is the decision of the seller.
Current mortgage down payment target requirements of 20% of a home’s price have prevented most renters from buying their first home.
Our Qualified Contract for Deed™ (QCD™) is ideal for first-time buyers who want to both own and live in a home before making a mortgage obligation commitment.
Our recommended path to QCD™ home ownership:
Enroll in our Comprehensive E-Learning Course: Buyers and The QCD™ Process
Step 1
Negotiating a QCD™ with a seller or landlord.
This contract between a buyer and seller provides for immediate transfer of an equitable interest (a legal form of ownership) in the property at signing. This allows the buyer to own the home, including traditional rights of occupancy, resale, and home appreciation. The contract also includes the terms of the arrangement, with a price for the home, the payment amount, contract interest rate, and terms, including agreement on amortization of the remaining principal after the down payment. The contract also states the buyer’s responsibility for taxes, insurance, and other costs of ownership.
Step 2
After a certain number of timely payments (at least 12 months), the buyer may be eligible for a home refinance mortgage. In that process, a new third party mortgage provider pays the balance remaining on the contract. The seller is then no longer involved in the transaction, and the buyer receives a traditional legal title to the property.
