Monday, October 25, 2010

Foreclosure Lot for Sale, Blaine, MN


Contract for Deed / Seller Financing Available

Loan #: 3091
Legal Description : Lot 8, Block 1, The Sanctuary Fifth Addition
Address: Blaine , MN
Discounted Price : $ 114,900.00 Original FMV : $ 125,000.00

Property Description:

Lot = 107 x 196 x 67 x 196; city sewer and water

It's a great time to purchase land -- plan ahead for your future

For more information or for a personal showing, please contact:
Ryan 763.784.3400 or 612.961.2140 or email
Jerry 612.867.4141 or email

Thursday, October 21, 2010

Foreclosure Lot for Sale, Baldwin Township, MN

Contract for Deed / Seller Financing Available

Loan #: 3215
Legal Description : Lot 2, Block 1, Wilderness Shores 2nd Addition
Address: Baldwin Township, MN
Discounted Price : $ 65,000.00 Original FMV : $ 100,000.00

Property Description:
Corner Lot measuring 379 x 210; well and septic

It's a great time to purchase land -- plan ahead for your future

For more information or for a personal showing, please contact:

Ryan 763.784.3400 or 612.961.2140 or email
Jerry 612.867.4141 or email

House for Sale, Andover, Minnesota



Loan #: 60013


14428 Flintwood Street NW
Status: Completed Andover, MN

Discounted Price: $339,900.00 Original FMV: $339,900.00

This Home Features:

2 Story, 4 bedroom, 3 bathroom, 2488 square feet

For more information or for a personal showing, please contact:

Jerry 612.867.4141 or email

Wednesday, September 29, 2010



Loan #: 60012 Address:

14454 Evergreen Street
Status: Completed Andover, MN

Discounted Price: $259,900.00 Original FMV: $259,900.00

This Home Features:

2 Story, 4 bedroom, 3 bathroom, 2035 square feet

For more information or for a personal showing, please contact:

Jerry 612.867.4141 or email

Monday, May 3, 2010

Five Biggest Mistakes Homebuyers Make

1. Not knowing your credit score - The lower your credit score, the chances decrease to negotiate a lower rate an lower fee. Know your FICO score. If your score needs improvement, you can pay down revolving credit balances which can increase your score considerably.

2. Buying a car before a house - Any time customers open a new credit account, auto loan, credit card, etc... their credit score could drop. If there is a new credit in between the approval and the closing, the lender could disqualify the loan.

3. Skimping on a home inspection - Buying a pig in a polk can have serious negative effects at a later date. Many homes purchased in today's market are distressed properties and should be contingent upon an inspection.

4. Not having proper representation - Everyone involved in the transaction (agent, bankers, brokers) have a vested interest in your transaction. You should make sure you have someone that represents just you.

5. No budgeting for insurance - Most homebuyers just don't understand insurance, what it covers, or the various types of coverage. Standard policies cover theft, wind, fire, lightning, and hail. There is no coverage for earthquakes, flooding, or neglect in maintenance. You should also explore a rider for additional insurance.

If you are looking for a home in today's market, we can help. Give us a call at 763-784-3400 or visit our website at

Tuesday, April 6, 2010

Credit Check

4 things that can hurt your credit

Consumers are feeling the pinch right now through the reduced availability of credit. If you are in the market for a new home, a car or even a cell phone, it is more important than ever to make sure your credit is in great shape.

Whenever you apply for any loan, an apartment or even a job, your credit is scrutinized to asses if you are a "good credit risk." If you have a low credit score or a rocky credit history, you will see it in higher interest rates that can cost thousands of dollars more than someone with good credit.

The first step to keeping your credit in good shape is to check your credit report. Some things to look for include:

* Errors on your report
Credit report errors are surprisingly common and can take months to correct. Regularly monitoring your credit report can help you catch mistakes early.

* Debt-to-credit ratio
If you are maxing out your credit cards, lenders take this as a sign that you are borrowing as much as, or more than you can handle. Keep your balances at least 50 percent below your credit limit.

* Late payments
Making all your payments on time means you avoid a black mark on your credit report and can save you hundreds of dollars in late fees.

* Old accounts
Consider leaving old accounts open even if you don't use them much anymore. The length of your credit history is a factor in your credit score so it pays to keep accounts open.

We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at for more information.

Going Green

A typical household could trim a utility bill by $500 or more and keep nearly 5,000 pounds of greenhouse gases out of the atmosphere.

$9.50—switch from 100-watt incandescent bulbs to compact fluorescent

$39—reduce shower times by 2 minutes

$40—install a low-flow shower head

$37—turn down the heat 1 degree in the winter

$111—turn it down 3 degrees

$14—raise thermostat 1 degree in summer

$42—raise it 3 degrees

$50—turn off unneeded appliances

$55—turn down water heater from 140 degrees to 120 degrees

$11—close your fireplace flue

$5—pay your bills online

$65—use your dishwasher’s air-dry setting

$57—wash clothes on the cold setting

Source—My Emissions Exchange.

It is still a great time to buy. We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at for more information.

Wednesday, March 10, 2010

How to Insure Your Home

Homeowners insurance protects your home, its contents, and, indirectly, your other assets in the event of fires, theft, accidents or other disasters.

A standard homeowner’s policy will protect you from things like fires and fallen trees. Notice how we didn’t mention floods, windstorms or earthquakes—those events are specifically not covered by a standard policy and require additional coverage. Homeowners in some areas of the country may be required by their mortgage company to carry these kinds of policies.

A standard policy will also protect your possessions from said disasters as well as theft. But a standard policy is not a blank check: there’s a limit to how much you’ll be compensated. If you have specific items of value, such as jewelry or artwork, you can pay a little extra each year to insure them for their full replacement value.

Now, if someone is on your property and slips and falls and sprains his ankle, he might sue you for his medical expenses. Homeowners insurance covers your liabilities in this situation as well. And like the examples mentioned above, you can pay more for extra coverage. Homeowners insurance isn’t required by law, like auto insurance. But mortgage companies usually require you to obtain a policy before they’ll give you a loan.

Your home-insurance policy should cover enough to entirely rebuild and furnish your home were it wiped off the map. Ask a home builder to walk through your home and give you an estimate of what it would take to rebuild; that figure should be the basis for how much replacement coverage you’ll need. Be sure to point out any unique and/or expensive details that would add to the replacement cost.

Once you’ve determined the replacement cost of your home, you’ll need to know what kind of coverage you want. There are a few key terms here:

• Guaranteed Replacement Cost Coverage– This means that the insurer will pay for the rebuilding of your home no matter the cost. These policies are hard to find these days.
• Extended Replacement Coverage– Many insurers offer coverage that caps the payout at around 125% of your home’s insured value.
• Inflation Guarantee – This feature makes sure that your home’s appraised value stays current with the marketplace.

If you get a reliable appraisal, extended replacement coverage and an inflation guarantee, you should be in good shape. The appraisal provides a realistic starting figure and the inflation guarantee makes sure that your home’s price stays current. The 125% coverage means that, even if construction prices outpace inflation, they probably didn’t outpace it by 25%, so you should have enough money for whatever work you need done.

One last thing: The law requires you to have flood insurance if you live in an officially recognized high-risk area. To find out your flood risk and to find plans (which are offered by the government), go to [1]

When it comes to protecting your possessions, you may want more coverage than your standard policy allows. If you have anything of exceptional value (a family heirloom, a piece of art, jewelry, etc.), you should insure it separately. Insurers will charge extra for this coverage (something like an extra $10 on your monthly premium per $1,000 of value insured), but it pays to be covered.

Also keep in mind that there are two different kinds of coverage when it comes to personal articles. There’s “actual cash value” and there’s “replacement cost.” You want coverage for replacement cost. Actual Cash Value Insurance is what you’d get if you sold your valuable today — a lower amount than what you initially paid. Replacement Cost Insurance pays you the amount of money you’d need to buy a brand-new item to replace your old one.-

For more information, contact us at or call at

Monday, March 1, 2010

Spring Maintenance on Your Home

Follow the maintenance tips below to keep your home running smoothly!

Check and clean your gutters and downspouts
Check your basement or crawl space for leakage
Change your furnace and A/C filter
Adjust your thermostat for seasonal temperature changes
Check and repair any window screen damage
Check ground settling after the spring thaw
Adjust humidifier for seasonal temperature change
Open valve to outside hose connection
Turn on sprinkler system to check for leaks
Trim shrubs that weren’t trimmed in fall

Got a leak? Windows old? Build a new home! Give us a call - we can help! 763-784-3400 or visit our website at

Thursday, February 25, 2010

Mortgage and Construction Loans

Avoid the "bait and switch". The mortgage lending business is notorious for baiting and switching, which is when a loan officer or advertisement offers you one thing and then tries to sells you something else. Remember that if it sounds too good to be true, it probably is. Make sure you always get your quote in writing.

Typical signs of baiting and switching are obvious, some basic examples are:
o Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
o You are offered a construction loan with no points and no loan fees. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
o You are told that you will not have any payments while you're building. What you're not told is that construction loans often have an option of "interest reserves" and the payments are added to the loan amount.

For upfront information on a mortgage loan or a construction loan, give us a call at 763-784-3400 or visit our website at

American Dream?

When will the nation’s property values begin to appreciate again? This is the $1MM question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market. Like everyone else, we can’t predict the end of this crisis either, but what we can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again.

Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”. They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.

The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $600,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $600k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?

Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.

So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream”.

Call us if we can help you with your "American Dream" at 763-784-3400 or visit our website at

Tuesday, February 9, 2010

Reminder - Take Advantage of the Tax Credit

If you’ve been thinking about buying a home, and weren’t eligible for the first-time home buyer tax credit, here’s some good news: the housing tax credit has been expanded and extended.

President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009, which enables many more Americans to take advantage of new government incentives to buy a home. In fact, the National Association of Home Builders (NAHB) estimates that close to 70 percent of all potential home buyers should now qualify for some form of the housing tax credit.

Congress has extended the time limit for the first-time home buyer tax credit, added repeat buyers and increased the income limits! Home buyers that didn’t qualify before may be eligible now, providing a great opportunity to market to higher-income or move-up buyers. Use these print ads, flyers, Web banners and other resources to let consumers know that buying a new home right now is the opportunity of a lifetime. NAHB’s consumer Web site will answer detailed questions: or give us a call at 763-784-3400 or visit out website at to see how we can help you find a home. We have bank owned properties in excellent repair! Give us a call.

Monday, February 8, 2010

Some Reasons Why You Need Title Insurance

There are many things that can come up in the time you own your property that cause title defects of one type or another. Lenders will require title insurance to make certain they are covered and owners should look into insurance and make certain they know what they are purchasing insurance for, or if they decide to forgo it, what they might be relinquishing as far as coverage. Some examples of title issues are:

Any forgery of documents in the chain of title

Any document signed by a person under age at the time of signing or signed by an insane person

The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.

Any document signed by a power of attorney and the power of attorney expired

An heir or other person presumed dead may appear and recover the property or an interest in the property

Title insurance covers attorneys’ fees and court costs

By having insurance, it simplifies the sale process

Title insurance reimburses you for the amount of your covered losses.

Each title insurance policy is paid in full with a one time premium for as long as you or your heirs own the property

Recording errors are covered under the policy

Marital status and validity of divorces come up frequently. Title insurance protects against claims made by non-existent or divorced "wives" or "husbands."

Over the last 24 years, claims have risen dramatically.

These are just a few of possible scenarios that title insurance would cover. When you intend to buy a property, carefully research the advantages and disadvantages of purchasing title insurance. It is probably the cheapest insurance you will buy. If you have questions about purchasing your property from us, please call one of our loan officers at 763-784-3400 or visit our website at

Tuesday, February 2, 2010

Today's Mortgage Rates

Deciding to be a homeowner is one of the most important decisions you will make. So, having all of the facts in front of you is very important. We at Contractors Capital are ready to answer any questions that you may have and help you in your decision making process.

We are lending and open for business.

Act now, while the interest rates are still at an all-time low.

Loan Program
30 Year Fixed ~ 5.06%
15 Year Fixed ~ 4.49%
1 Year ARM ~ 3.79%
30 Year Fixed Jumbo ~ 5.88%
5/1 ARM ~ 4.10%
3/1 ARM ~ 4.68%

Please call on us at 763-784-3400 for assistance or visit our website at

Friday, January 22, 2010

Construction Loans ~ We are Lending!

Just like any product, construction loans have their good, bad, and ugly. Here is some information to assist you in keeping away from the bad and the ugly ones…...

Know your options. In today’s market, the options for construction financing have been greatly reduced from years past. Today's construction loan choices include some banks that will offer a construction loan and construction finance companies that are independent. Some of your options will depend if you have selected a builder or if you will be spear-heading the build yourself and hiring your own subcontractors.

Get pre-approved for a loan. This will help to determine if the requested loan amount is within your budget. It will also allow you to find out what the monthly land or mortgage payment is going to be, and to make sure you qualify before you run out and buy land. This pre-approval will be required by the lender whether you or the builder is financing the building costs. Anyone willing to grant you the construction financing is going to want to be absolutely certain the house will be financed into one of the traditional choices of permanent financing options once it is complete. Neither the builder nor the lender wants the house at completion!

Realize that construction loans are most often loans that will need explaining. The lender will want to know exactly what it is you are trying to accomplish. They will want the costs, plans, and any ideas you might bring to the table and how you intend to accomplish it then they can recommend a program and approve your loan.

Factor in contingency funds into the cost of building your new home. Contingency funds are added to the loan amount just in case you need more money to build your new home. With all good intentions, construction loans tend to have cost overruns. Typically, 5% to 10% of the cost breakdown is added to the loan amount just in case you have cost over runs or need better appliances. If you don’t need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home.

Make sure the construction lender is experienced. Local banks, if they do construction loans, might be able to offer you a great rate. National Lenders are more likely to have construction programs, but the drawback is that they do not necessarily have their fingers on the pulse of the local Real Estate market. But your first consideration should be construction lending experience. Even more than a mortgage loan, a construction loan can be complicated. Avoid using any entity that provides you with a loan officer who doesn't have significant experience providing construction loans to consumers. Simply asking ‘how long have you been doing construction loans?’ is a good start.

Enter into a written contract with a builder/contractor (if you aren’t acting as your own General Contractor). Items typically required of a builder are their financials, both personal and entity, prior years taxes, building license, good standing with the Secretary of State, Liability Insurance information and some others. A cost statement breaking down each line item of the build will be a must. A construction contract is a written agreement between the borrower and the builder for services to be provided by the builder for a stated consideration. A properly written and customary contract contains:

A clear statement outlining the responsibilities each party will perform.
The date of the contract, the scheduled dates for commencement and completion of construction of the project.

The amount of payment the builder is to receive for each stage of construction, as well as under what conditions it will be received, such as passing inspection etc. If the property is located in a state that charges sales tax, the contract must specify whether the amount includes state sales tax.

A completed and signed line item cost breakdown and list of materials.

A payment method that is compatible with the line item cost breakdown and the disbursement procedures of the lender.
Provisions for possible changes to plans or specifications by appropriate change orders. Since most construction loans have a contingency provision a cost over run may be paid for using that provision.

Full identification of all parties and definition of all names used in the contract (contractor, owner, subcontractors and architect).

Architect's responsibility, if any.

Signatures of the borrower and contractor.

Get construction insurance. Banks will require two types of insurance, builder’s risk and general liability. This requirement is set forth by the bank, not the builder. So make sure you hire a reputable builder with insurance, it will help your construction loan close much faster and smoother.

Builder’s Risk: This policy is an all risk policy to include, fire, extended coverage, builder's risk, replacement cost, vandalism and malicious mischief insurance coverage.

General Liability Insurance: You or your builder can provide this policy. This policy is a comprehensive general policy or a broad form liability endorsement. The minimum amount of $300,000 for each occurrence is required. If the builder provides the insurance a general policy of $1,000,000 or a broad form liability endorsement is required. Ask your builder upfront if they have general liability insurance. If they do not, ask if they have a problem providing the insurance. Some builders cannot afford or simply do not want to pay for the insurance and then guess who has to provide it, yes, you do. You can save yourself a lot of headaches and money if you work with a builder that has insurance.

As you can see, building a house has a few steps to consider. If you would like assistance with building your own home, have a builder build your home, or already have a builder in mind, give us a call. We can help with construction financing options. Our number is 763-784-3400 and speak with one of our loan officers or preview our website at for more information.

Certificate of Rent Paid and 1098 Form

Certificate of Rent Paid (CRP)

By January 31, 2010 landlords should have sent out the Minnesota Certificate of Rent Paid to their tenants. The MN Certificate of Rent Paid provides the tenant the form and breakdown of rent paid which they can use to obtain their rent credit when they do their taxes. This is commonly known in Minnesota as the renters refund.

A Minnesota Certificate of Rent Paid should be sent to each married couple and unmarried person living at the house, townhouse or apartment. Each individual should receive their own Certificate of Rent Paid with only their name on it. In the case of a married couple, they count as one individual. So if you have one married couple and two single persons living at your residence, a total of three Certificate of Rent Paid Forms should be sent.
Regardless of who is paying the rent, the landlord must divide the total yearly rent received by the number of individuals equally. The landlord divides the total yearly rent received by the number of Certificate of Rent Paid forms they are sending to the tenants. It may be that one tenant paid more than another or they may have even paid most of the rent. This does not matter. The instructions on the 2009 Certificate of Rent Paid MN form states that the rent stated on the CRP must be divided equally regardless of what was actually paid.

1098 Form

A form filed with the Internal Revenue Service (IRS) that details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year. This form is for contract for deed holders as well. These expenses can be used as deductions on a U.S. income tax form Schedule A which reduces taxable income and the overall amount owed to the IRS. The mortgage lender is required by the IRS to provide this form to borrowers.

If you need any assistance with this or are a tenant/buyer of one of our properties or one of our builder's properties, give us a call at 763-784-3400 or visit our website at

Friday, January 15, 2010

How to Find a Builder

If you are in the market to build a home, but don't know where to start-read on. Deciding to build a home is a big decision. Choosing the right builder is vital to your experience as they are the focal point for the entire process through completion, assuring quality throughout. There are many ways to find a builder. Quality builders take great pride in their work. They do things right the first time to avoid the expense of repairs later. Most of all, they value satisfied customers.

There are several ways to seek out a new builder.

One is to call us. We are a construction finance lender that for 10+ years has offered financing to the builders in our area. We service and fund the construction project from the time the lot is purchased through the time you close on your completed home. We have many bulders we can pair you up with so you will have several options for builders to choose between.

There are several typical methods to locate a builder. A great way is referrals from friends and family that have experienced working with a good builder. You can visit model homes and new housing developments to see the work of various builders.

Once you have narrowed down a few builders, calling the local Better Business Bureau, (BBB) and check the record of complaints filed against the builder is always a good idea. Determine the rating received by the BBB and refrain from selecting a builder with multiple complaints.

Check the reputation of the builder. Even with a home warranty, complaints are resolved directly with the builder, so the builder's willingness to make repairs is far more important than the warranty.

Look for builders that have been in business for many years and under their same name.

Contact the local and National Association of Home Builders. Membership is a good indication of quality of work, and offers some assurance of the builder's standing in the profession.

Please call on us for assistance locating a builder. We have a portfolio of many builders we have worked with over the years and would love to assist you. Our website is or call 763-784-3400 and speak with any of our loan officers.

Thursday, January 14, 2010

Carbon Monoxide and Your Home

It is that time of year to be especially careful about carbon monoxide poisoning. Each year in the US, approximately 20,000 people go the emergency room for carbon monoxide poisoning and nearly 500 people die from it. It is a colorless, odorless gas which is extremely poisonous and can kill you in minutes. Symptoms include feeling dizzy, tremendous headache and nausea, and extreme sleepiness.

The number one cause of carbon monoxide poisoning in the US is danger from poorly-maintained heating systems. Make sure that your appliances and heating devices are property vented and maintained by a professional. Another cause (in the colder states, in particular) is running your car in the garage to heat it up, which should not be done even with the garage door open. Park your car in the driveway, well away from home. In addition, if one loses power, do not use your oven to heat the home and use a back-up generator carefully. It should be placed outdoors.

Most importantly, all homes should have C.M. detectors. There should be one near every room where people sleep at night. Make sure it is battery operated or at least has a battery back-up in case of power failure.

Carbon monoxide makes people sick, it kills people and is completely preventable.

We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at for more information.