Frequently Asked Questions

Buying a house on contract is real homeownership. Instead of a bank providing the loan, Contract Exchange finances the purchase. This option can help buyers who may not qualify for a traditional loan due to credit, income, or other factors. When you buy on contract, you own the home and build equity just like any other homeowner. You’re responsible for property taxes and insurance, and you can sell, rent, or refinance the home in the future. You’re not limited to a small list of homes—you can choose any home within your approved price range.

Buying on contract is very similar to buying a home through a bank. The main difference is who provides the loan. With a bank, the bank finances your purchase. With a contract, Contract Exchange provides the financing instead. In our process, we purchase the home from the seller and provide the loan directly to the buyer. This allows the seller to move on, while you work directly with us from start to finish. Your loan stays in-house, so you always know who you’re working with. Buying on contract can be a good option for people who may not qualify for a traditional bank loan due to credit or other factors. We look at your full financial picture—not just one number—when making decisions. Like any loan, terms vary based on your situation. For example, a lower credit score may result in a higher interest rate.**

Yes. Yes. Many people with lower credit have been able to purchase a home and rebuild their credit over time. Every situation is different, so we complete a full review of your financial picture to determine if you qualify.***

No—buying on contract is different. When you buy on contract, you begin building equity in the home right away and are the owner from day one. Equity is the value of your home minus what you still owe on your loan. It represents the amount you could receive if you choose to sell the home. As your equity grows, you may also have the option to borrow against it, depending on your situation. You can also sell or rent your home at any time, just like other homeowners. As a homeowner, you are also required to pay property taxes, home insurance and any maintenance or repairs your home needs.

Call or click “Chat Now” on our website. If you’re visiting our website, the virtual help desk will ask basic questions to give us a big-picture overview of your financial situation. This initial pre-qualification helps you get an idea if you may be able to borrow before you proceed to the full pre-approval process. It takes just two minutes and does not require a credit check. Click “HERE” to chat with our virtual help desk. It is quick, no pressure, and does not require a credit pull.***

Think of pre-qualification as a quick first step. It’s a simple review of your financial situation to see if you may be able to borrow. Pre-approval goes further. It means we’ve taken a closer look and can give you a clearer idea of how much you may be able to borrow—so you can move forward with confidence when making an offer. Both steps require a full review of your credit and financial information, and final approval depends on the details of your situation.*** A quick tip: After getting pre-approved, avoid opening new credit cards, taking out a car loan, or using new lines of credit. These changes can affect your ability to buy in the price range you were given.

The purchase price is the listed price of the home. Interest is the cost of borrowing that money over time, usually shown as a percentage of your loan. The total interest you pay depends on your rate, down payment, and loan term. If you make extra payments or pay off your loan early, you can reduce the total interest paid.**

Like any home purchase, there are additional costs. These may include insurance, recording costs, origination, and closing fees. We factor these into your approval and payment, so you have a clear understanding upfront. Taxes and insurance are also included in your monthly payment.**

Not necessarily! If this happens, don’t get discouraged. At your request, we can give you feedback on what you can do to improve your financial situation for the next time you apply, so you can boost your chances at getting approved in the future!***

The down payment is the upfront cost to buy the house. This amount pays down your loan for the house you buy.

In general, down payments range from 5% to 20%:

The exact amount will depend on the home you choose and your loan terms. During the approval process, we help make sure your payment is comfortable for your situation.**

Each person has a unique financial situation, and each contract is set up differently. Some people may prefer to have a 25 year mortgage for their home, while others may just need a construction loan for a couple years. The great thing about CEC is we offer you options that work for you! Your individual situation will determine the contract terms. A balloon payment means a large, lump sum payment is due at the end of the contract term. Generally, we do not have balloons. Our loans are set up so that you pay down the amount you borrowed with equal payments until the balance is gone. This way, payments stay affordable and the same throughout the life of your loan.**

Making regular payments is important to rebuild your credit and maintain ownership of your home. That’s why the application process matters—we take the time to understand your situation and set up a payment that is manageable for you over time. If you ever have a late or missed payment, we encourage you to contact us right away. In many cases, we can work together to find a solution. If payments are not made and a solution cannot be reached, the forfeiture process may begin. This is always a last resort. We make every effort to work with our buyers and encourage early communication if you feel you may have trouble making a payment.

A few simple steps are needed before making an offer on a home:

Yes! As long as you own your home and have plenty of equity to cover the debt you want to consolidate, we can give you a fresh start with a new loan and a payment that is comfortable to you. Preapproval is required.***

Yes, oftentimes we can help in situations like this. If you were initially pre-approved by your bank, but then debt-to-income-ratio or something else caused you to get declined, call us. We do not have to use the same rigid lending standards that banks use, so we have more flexibility to look at your “big picture” situation. ***

Estates can be complex and messy, but we aim to make it as simple as possible for you. We can offer a home loan to you (even if a bank turned you down in the past), or a cash offer, so you can move forward. Call us to discuss your unique situation.

Yes, though the amount of downpayment will be higher than traditional home loans. **

The property owner (home buyer), would be responsible for paying for these things, just like a traditional homeowner. We build this into the payment to make sure that the monthly payment is comfortable for you. **

The property owner/contract buyer would be responsible for repairs and maintenance. However, if you have a large repair or improvement you need to do and you cannot afford to do it on your own, reach out to us for ways that you can roll the cost of this into your monthly payment. Approval required.***

Yes. Just like how a bank puts a lien on a traditional home buyer's house until their loan is paid off, the title of the deed remains in the lender’s name until the loan is paid off when purchasing on contract. This is simply a way for the lender to have collateral. The home buyer’s name is also listed as an owner on the city assessor’s page to show that you are the owner of the property. Remember, even though the title is in CEC’s name, you still own the home, and you can sell it, rent it, or borrow money against it at any time.

Yes, contract sales work the same way as conventional loans in this way. An appraisal must be completed to ensure that the home is worth what you are paying for it, and we will make sure that the deed is clear before closing on your loan. We are a licensed lender who follows all federal lending guidelines and processes.

If you buy a house on the real estate market, the money you borrow will be paid to the seller at the time of purchase (closing). The seller will get the money for their house, you will get your loan, and begin making payments to CEC. In some cases, your lender may obtain a mortgage in order to allow you to borrow the money. In this case, your payments are protected in the event that the lender stops making their payments to their bank.

No, you can make the regular minimum monthly payments as planned, or you can pay more on your loan- penalty-free.

Once the loan is paid off, the deed title will be transferred to the buyer's name, they will record the new deed with the county and own the house “free and clear.” Please keep in mind that property tax and insurance payments still need to be made even after the contract loan is paid off. CEC will no longer be part of this process once your loan with us is paid off.

We look at several factors, including the property’s condition, location, market value, and your specific situation. Our goal is to provide a fair, straightforward offer that makes sense for both sides.

Our offers are based on the current condition of the property and the terms of the sale. While a traditional listing may bring a higher price, our approach offers speed, simplicity, and certainty—without repairs, fees, or delays.

No. There are no commissions or hidden fees. We keep the process simple and transparent.

In many cases, we can move quickly—often within a couple weeks or less. We’ll work with your timeline and keep you informed every step of the way.

Yes. We work with you to choose a closing timeline that fits your needs whenever possible.

No. You don’t need to fix anything before selling.

Yes. We purchase properties in as-is condition, so you don’t have to worry about repairs, cleanup, or updates.

Yes. We work with homeowners in a variety of situations, including financial hardship. The sooner you reach out, the more options we may be able to offer.

We have experience working through more complex situations, including title and probate matters. We can review your situation and help you understand what options are available.

Yes. We often work with properties that may be difficult to sell through traditional channels, including unique or non-traditional properties.

Yes and we can help you through the steps, and even do the paperwork for you.

Contract Exchange can help you to either sell your home for cash or sell on contract. Selling your home on contract might be a solution for you if you want to make your property an investment. In this case, you would sell your property to a contract buyer and receive interest and payments over time instead of a lump sum. It can allow you to stay involved as an investor while creating a steady income stream.

Yes. You receive interest and payments based on the terms of the contract. This can provide consistent income over time instead of a one-time payout.

If you choose to sell your home on contract, you can handle the payments and paperwork yourself—or, for a small monthly fee, we can handle it for you. We take care of payments, records, tax documents, and communication so you don’t have to manage the details.

No, you are never under any obligation. We want you to be able to freely explore your options before making any decisions.

You’ll work directly with our local team. We’re based in Iowa, and you’ll always be able to talk to a real person who understands your situation.

We focus on long-term solutions, not quick fixes. With over 45 years of experience, we provide flexible options, clear guidance, and a straightforward process so you can move forward with confidence.

Yes! As long as you have enough equity (value minus your loan amount) in your home, we can help you to pay off your past due property taxes and roll it into a new loan that works for you. Preapproval is required.**

Not necessarily. Falling behind on property taxes does put your home at risk, but there are often options available. The sooner you act, the more we may be able to help you protect your home.

In many cases, no. Even if you’ve received notices, there may still be time to explore solutions. Every situation is different, so it’s important to reach out as soon as possible.

The timeline can vary depending on your situation. If you’re unsure where you stand, we can help you understand your timeline and what options may still be available.

We offer solutions that can help you pay off overdue property taxes and create a loan that works for your current situation. Our goal is to help you move forward with a plan that’s manageable long term. Preapproval is required.***

Yes. Our focus is on helping you stay in your home whenever possible. We’ll walk you through your options so you can make the best decision for your situation.

No. Selling is not required. We focus on helping you stay in your home, but if you decide selling is the right option, we can guide you through that too.

Yes. We work with many homeowners who have credit challenges. We look at your full situation—not just your credit score—when deciding if you qualify.***

Equity is the current value of your home, minus anything you owe on it. In most cases, some equity is needed to create a workable solution. We can review your situation and help you understand what may be possible.

No. There are no upfront fees. We focus on providing clear, honest solutions without adding extra financial pressure.

No. There’s no obligation at all. We want you to feel comfortable exploring your options before making any decisions.

Some companies offer short-term solutions that can come with high fees or added risk. We take a different approach—focusing on long-term solutions designed to protect your homeownership and help you move forward with confidence.

We move quickly, especially when time matters. In many cases, we can review your situation and begin outlining options in a short timeframe.

Yes! As long as you own your home and have enough equity to cover the debt you want to consolidate, we can give you a fresh start with a new loan and a payment that is comfortable to you. (Equity is the current value of your home, minus anything you owe on it.) Preapproval is required.***

We help buyers consolidate all kinds of debt including: credit card debt, car loans, second mortgages and lines of credit, student loans, home improvement projects, and even business expenses. As long as you own a home and your loan is for 70% or less of your home’s current value, we can begin our prequalification process.***

In order to lower your monthly payments and put all debts into one loan, we will refinance your home. This means, if you’re approved, we take your current home loan, and the other debts you want to pay off, and bring them together into one, new loan. The terms of this new loan will be designed to make payments comfortable for you.** Please note that the amount of debt you are able to pay off will depend on several factors, and will require preapproval. ***

Yes. We focus on solutions that help lower your monthly payment. If we’re not able to do that, we’ll be upfront with you. Our goal is always to recommend what’s in your best interest.

Your home is part of the solution, so it’s important to understand how everything works. Our goal is to create a loan that makes your monthly payments more manageable and reduces the risk of missed payments. We use debt consolidation as a long-term solution, and we take the time to structure a loan that fits your situation. We’ll walk you through everything clearly so you can make the decision that’s right for you.**

If approved, we will pay off your current mortgage and create a new loan that rolls your debt and home loan into one payment. ***

Yes. Many people with lower credit have been able to consolidate debt and rebuild their credit over time. Every situation is different, so we complete a full review of your financial picture to determine if you qualify.***

Call us or click “Chat Now” on our website. Our chat assistant will ask a few quick questions to get a big-picture of your situation. This initial conversation helps you understand if you may be able to borrow before moving forward with a full application. It takes just a few minutes and does not require a credit check.***

Think of pre-qualification as a quick first step. It’s a simple review of your financial situation to see if you may be able to borrow. Pre-approval goes further. It means we’ve taken a closer look and can give you a clearer idea of how much you may be able to borrow—so you can move forward with confidence when making an offer. Both steps require a full review of your credit and financial information, and final approval depends on the details of your situation. A quick tip: After getting pre-approved, avoid opening new credit cards, taking out a car loan, or using new lines of credit. These changes can affect your ability to buy in the price range you were given.***

Not necessarily! If this happens, don’t get discouraged. At your request, we can give you feedback on what you can do to improve your financial situation for the next time you apply, so you can boost your chances at getting approved in the future! Just reach out to us to request this information.

Each month your total payment will cover several areas of the cost of your home:

Depending on the type of home you purchase and the terms of your loan, these amounts will vary. The approval process will help to make sure that you purchase a home with a monthly payment that is comfortable to you.**

Each person has a unique financial situation, and each contract is set up differently. Some people may prefer to have a 25 year mortgage, while others may just need a construction loan for a couple years. The great thing about CEC is we offer you options that work for you! Your individual situation will determine the contract terms. A balloon payment means a large, lump sum payment is due at the end of the contract term. Generally, we do not have balloons. Our loans are set up so that you pay down the amount you borrowed with equal payments until the balance is gone. This way, payments stay affordable and the same throughout the life of your loan.**

Making regular payments is important to rebuild your credit and maintain ownership of your home. That’s why the application process matters—we take the time to understand your situation and set up a payment that is manageable for you over time. If you ever have a late or missed payment, we encourage you to contact us right away. In many cases, we can work together to find a solution. If payments are not made and a solution cannot be reached, the forfeiture process may begin. This is always a last resort. We make every effort to work with our buyers and encourage early communication if you feel you may have trouble making a payment.

A few simple steps are needed consolidate your debt:

We make both business loans and loans to help with home improvements. If you own your home and have enough equity (home value minus your current loan), we may be able to help! ***

Estates can be complex and messy, but we aim to make it as simple as possible for you. We can offer a home loan to you (even if a bank turned you down in the past), or a cash offer, so you can move forward. *** Call us to discuss your unique situation.

Yes, though the amount of downpayment will be higher than traditional home loans. **

No, you can make the regular minimum monthly payments as planned, or you can pay more on your loan- penalty-free.

We’ve been working with homeowners across Iowa for over 45 years. We focus on clear communication, fair options, and helping you move forward—without pressure or complicated processes.

Yes, we purchase contracts and notes. Call us to see if your situation fits.

We review your contract and payment details, then present you with a clear, straightforward offer. If it’s a good fit, we handle the paperwork and move forward at a pace that works for you.

Yes. Every situation is different, and we take the time to review the details carefully. Our goal is to provide a fair, transparent offer you can feel confident about.

In many cases, we can move quickly—often within a few weeks. We’ll walk you through the timeline and the process so you know exactly what to expect.

No. Once the contract is sold, we take over the servicing. That means no more tracking payments, handling questions, or dealing with late payments.

We work with many different situations, including contracts with payment concerns. We’ll review the details and let you know what options are available.

In some cases, yes. We offer flexible options depending on your goals, and we can walk through what might work best for you.

No. There are no commissions or hidden fees. We focus on keeping the process simple and straightforward.

Not at all. There’s no pressure—just a conversation to see if this is the right fit for you.

We work with a wide range of land contracts and notes. If you’re unsure whether yours qualifies, we’re happy to take a look and talk it through with you.

We’ve been working with contract owners across Iowa for over 45 years. We focus on clear communication, fair options, and helping you move forward—without pressure or complicated processes.

Servicing a land contract means handling the day-to-day details—collecting payments, keeping records, communicating with the buyer, and managing paperwork—so everything runs smoothly.

Yes. You remain the owner of the contract. We simply handle the calls and paperwork for you.

We collect payments from the buyer and then disburse them to you, along with clear records so you always know where things stand.

We handle communication, send notices, and manage the situation according to the terms of the contract. Our goal is to keep things on track while keeping you informed.

Yes. We can help structure the contract, coordinate the closing, and make sure everything follows the proper guidelines from the start.

Yes. We provide forms such as 1098 and 1099-INT for interest reporting, helping make tax time easier.

If needed, we can help track and manage property taxes and insurance to help ensure everything stays current.

We work with many investors who have multiple contracts. Our servicing helps simplify everything by keeping it organized and easy to track in one place.

Yes. If your goals change, we can help you explore options to sell your contract and turn it into a lump sum of cash.

No. There’s no pressure—just a conversation to see if this is the right fit for you.

You’ll work directly with our local Iowa team. We’re here to answer questions and provide support whenever you need it.

With over 45 years of experience, we focus on clear communication, accurate records, and dependable service. We handle the details so you don’t have to—while keeping everything straightforward and easy to understand.