Several companies that can assist the buyers, sellers, and real estate professionals in this new process of creating home ownership are available on this website. Our hope is they might reduce their marketing costs and resulting in greater cost savings.
Some of these affiliates are making financial contributions to this Educational Initiative, to allow it to continue to be presented Free to its users.
QCD™ Mortgage Refinance
Many of these contracts will be eligible for the new buyer to refinance their home using a traditional mortgage after the first year of timely payments. Buyers should explore and understand the benefits and other implications of this process. These mortgage providers will provide more information.
Real Estate Professionals
Many Real Estate Professionals are not familiar with the use of these contracts, since the current traditional ownership transfer using a mortgage is used in most property sales. We expect that certain agents and organizations will be participating in the process to help sellers and buyers agree on value and provide guidance in other areas.
Financial Services & Tax Preparation
Entering into a QCD™ provides for an ownership transfer that allows the new buyer/owner to take a tax deduction for the portion of the monthly payment that is interest expense and the property taxes, with certain limitations under Federal and State tax laws. We recommend you consult a professional to determine the impact of your ownership.
Home Insurance
Keeping the home properly insured is the responsibility of the new QCD™ owner, who should work with the seller to verify coverage. There may be a savings since the insurance is now for an owner-occupant, not a tenant. Talk to an insurance professional to make the best choice.
Credit Repair
Entering into a QCD™ to purchase a home does not require credit approval other than from the seller, who will set their own standards in deciding on the buyer’s approval. Eventually, both the buyer and seller may want the buyer to refinance the property, by obtaining a traditional mortgage in order to pay off the contract balance.
Home Inspection
We recommend that the seller provide a home inspection for the buyer, with discussions of any issues that are identified in the process. Where and when appropriate, the inspector should be able to update the report in the event of a refinance mortgage process.
Home Warranties
Since in many cases the contract buyers are renters who are becoming first time homeowners, the seller should strongly consider providing the buyer with a home appliance and systems warranty. This could provide the new owner with both access to a pre-qualified list of contract service and repair providers, and potential financial protection.
