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If it's not your current primary residence, you can't owner finance without being a loan originator anymore. You're going to need to get a loan officer involved to handle the paperwork, with you still being the "bank". Rules changed last month...
Don't know how this legislation slipped by me but have to say that reading this post sent me Googling and ruined my morning... unless you can point me to something about what you state..."get a loan officer to handle the paperwork" which would be an unwelcome but bearable step.
I couldn't find anything other than articles about NO owner financing without a Mortgage Broker licence unless of a primary residence(or, I think it also excluded close relatives)
Anybody have current information or that there has been any modifications?
That's why I said the owner would then be acting as the "bank" and it's not considered seller financing at that point. Once there is a middle man, the seller is not doing the paperwork and is only doing the money part.
I would think if the seller offered the loan officer $500 a pop, many would do it. The seasoned "seller finance guy" already has his own Note and fill in the blank stuff, and if all the loan officer had to do was get it filled out with the proper information pertaining to the buyer and this property, that should be fast and easy money. No underwriting headaches, no processing headaches, not attorney doc review for the closing department... instant funding at closing.
I would think if the seller offered the loan officer $500 a pop, many would do it. The seasoned "seller finance guy" already has his own Note and fill in the blank stuff, and if all the loan officer had to do was get it filled out with the proper information pertaining to the buyer and this property, that should be fast and easy money. No underwriting headaches, no processing headaches, not attorney doc review for the closing department... instant funding at closing.
You're probably quite right there....even more so these days
In the decade plus years involved with mortgages, being a L/O, plus the last three here at my law office...
I understand the benefits of For-Sale-by-Owner and Owner financing.
When I read a posts from people asking for help - looking at your information whats listed here. see Red Flags popping up
There are many good people here - you need to be really careful about asking for assistance on a any computer forum. You can easily be scammed into a situation that is not to your benefit.
I can writing a book out of all the people I've spoken to telling me their hardships. How they got into something, where later they wished they would of never done that way.......
My advice to you is - Just be careful.......
As for owner financing - Id' say that this is a negotiable thing with your seller. the two of you would have to agree on the terms and conditions of such a mortgage - that's pretty much it. You do not need a loan officer.
Here in New York - you need an attorney to witness any transaction involving real estate. Not so in Florida - a notary republic can witness a closing.
My advice is to contact a title company to assist you with drawing up the documents (note, deed, sales contract, ex...). They can also help you will your closing and the filing of your loan documents with the County.
In the decade plus years involved with mortgages, being a L/O, plus the last three here at my law office...
.....
As for owner financing - Id' say that this is a negotiable thing with your seller. the two of you would have to agree on the terms and conditions of such a mortgage - that's pretty much it. You do not need a loan officer.
Go read the SAFE Act so you can catch up. It's not about just negotiating with the seller anymore. Things change.
Go read the SAFE Act so you can catch up. It's not about just negotiating with the seller anymore. Things change.
This is not good news. Our renters are considering buying our rental but would need our help.
I'm not convinced that having a loan officer do the paperwork will take care of it. As far as I can tell, SAFE isn't about who does the paperwork; it's about who loans the money.
Does SAFE affect rent-to-own?
I found a 20-hour course that costs about $320. Anyone know the cost of taking the exam (or the website, which I can't find) and the cost of the license?
This is not good news. Our renters are considering buying our rental but would need our help.
I'm not convinced that having a loan officer do the paperwork will take care of it. As far as I can tell, SAFE isn't about who does the paperwork; it's about who loans the money.
Does SAFE affect rent-to-own?
I found a 20-hour course that costs about $320. Anyone know the cost of taking the exam (or the website, which I can't find) and the cost of the license?
Of course this affects any rent to own or lease to own type situation because the initial part is a rental agreement. They aren't "buying" the property for however many months/years. When they finally get ready to buy, if you as the owner want to do seller financing, you will need to educate yourself about the new rules.
Yes, it is all about who does the paperwork. As the seller/home owner, you would become the "bank" loaning the money.
Of course this affects any rent to own or lease to own type situation because the initial part is a rental agreement. They aren't "buying" the property for however many months/years. When they finally get ready to buy, if you as the owner want to do seller financing, you will need to educate yourself about the new rules.
Yes, it is all about who does the paperwork. As the seller/home owner, you would become the "bank" loaning the money.
So as long as it's renting/leasing you're fine? It's only when it comes to the purchasing part that you need to take into consideration the new rules?
I'm sorry, I'm not trying to be difficult, I just want to make sure I understand this.
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