Rent-to-own, SAFE Act (tenant, mortgage, banks, property)

[sll3454]

Our tenant is interested in a rent-to-own agreement. He will be able to make an initial payment of about 5.5%. We would like to find a way to make this work.

We had a neighbor who did rent-to-own with payments from an amortization schedule. After 7.5 years (halfway point) the property would be his, and the seller would hold the mortgage. (It turned out he got other financing and purchased before the 7.5 years were up.) This sort of thing would be our preference - except that the SAFE Act makes this impossible. Or does it?

In my reading on "rent-to-own," I haven't seen anything like that. It's just, initial payment, extra monthly rent that goes toward purchase, and buyer finds his own financing to make the purchase before the time is up.

So - is there any other way to do rent-to-own? Anything like what my neighbor did? Someone on this forum said that the SAFE Act allows seller financing if a loan officer does the paperwork. Does anyone else think this is true? Has anyone actually done it? The house is in NC, and is not owner-occupied. (Another option is for DH or me to take classes and test to become a loan originator.)

[dad2jules]

Call the NC Commsissioner of Banks to be 100% sure 888-384-3811. I believe there is a certain number that you can do a year for your own property but don't rememebr the number.

[Mark Brian]

3 owner finance in a year but there are many details to the SAFE Act and Dodd-Frank to consider. See http://www.realtor.org/wps/wcm/connect/8d8ff18045b7c60bbe18ff342c47dc89/gov_aff_seller_fin_summary.pdf?MOD=AJPERES&CACHEID =8d8ff18045b7c60bbe18ff342c47dc89 (broken link)

[sll3454]

Thanks.

[DanteMazyck]

You could possibly get an attorney to draft the paperwork for a few hundred bucks.